This ETF is linked to the price return of an underlying ETF that tracks the S&P 500 Index. Over the target outcome period, it absorbs an initial portion of losses and captures gains only up to a predetermined cap. A new period begins in July.

It suits investors who want to keep equity exposure and soften the impact of a downturn, and who can accept an upside cap in return.

It is a passively managed (index-tracking) ETF run by PGIM.

The fund invests most of its assets in customized listed options tied to the underlying ETF. This creates a downside buffer and an upside cap that apply as of the end of the target outcome period. If you buy or sell partway through the period, the designed payoff structure will not apply in full.

• A structure with a predetermined downside buffer and upside cap
• Because it starts in July, you can stagger entry timing against other monthly series
• It builds exposure through options rather than holding the index constituents directly

Assets under management (AUM) stand at $75.0M, and the total expense ratio is 0.50% per year.

Trading volume is thinner than that of large index ETFs, so it is better to check the bid-ask spread before buying. The earlier in the period you buy, the more fully you receive the designed buffer.

When the index rises, the cap means the fund gains less than the underlying index. During pullbacks, it falls less by the amount of the buffer, and this pattern repeats. When evaluating performance, look at the entire target outcome period rather than daily moves.

When volatility rises or the direction of interest rates becomes uncertain, demand from investors who want to set their range of outcomes in advance tends to flow into buffer products. In a strong bull market, by contrast, the cap becomes a drag and interest fades.

Its strength is a structure that cushions the impact of declines. Its weaknesses are the upside cap and the fact that the structure breaks down if you trade mid-period.

BUFR(ETF) and BUFD(ETF), which appear in the table, are ladder-style products that bundle several start months into a single fund. They diversify timing automatically but carry a higher fee burden. SFLR(ETF) holds stocks directly and applies a floor, so it is best compared only in terms of asset size, while FJAN and others are buffer products of the same kind with different start months. To stagger timing within the same issuer, consider PBJN, PBAP, PBSE, and others together. If you would rather delegate the choice of month, a ladder-style product such as PBFR is also an option.

With buffer ETFs, when you buy largely determines the outcome. It is best to first check the time remaining in the target outcome period, the current remaining buffer, and the remaining upside.

You remain fully exposed to a sharp drop that exceeds the buffer. Because of the option structure, the fund's price midway through the period does not immediately reflect index movements, and its smaller asset base may mean higher trading costs.

This structure suits investors who want to keep index exposure while softening the impact of declines. Enter in line with the start of the period, and if you want to stagger timing, consider other monthly series or ladder-style products as well.