- What does PBMY invest in?
- PBMY uses FLEX options in an effort to moderate losses on shares of SPDR S&P 500 ETF Trust (SPY) over a one-year period, starting each May. The fund foregoes upside participation above a certain threshold, which resets annually in exchange for preventing the realization of the first 20% of SPYs losses, as well as the dividend component of SPY because the options are written on the price and not on the total return version of the shares. Should the value of SPY decline by more than 20%, the fund will experience subsequent losses on a one-to-one basis. The fund must be held to the end of the outcome period to achieve the intended results. Investors who buy at any time other than the annual reset day may have a different protection and buffer zone. Once established, the issuer publishes the interim levels for the cap on its website. Investors should note that the targeted cap and buffer do not include the funds expense ratio. On February 21, 2025, the fund name changed to PGIM S&P 500 Buffer 20 ETF - May.
- What is the expense ratio of PBMY?
- PGIM S&P 500 Buffer 20 ETF - May (PBMY) charges an expense ratio of 0.50%. This is the annual fee deducted from fund assets to cover management and operations.
- What is PBMY's distribution yield?
- PBMY's trailing-twelve-month yield is 0.07%, calculated from the sum of distributions over the past year divided by the current price.
- How does PBMY's covered-call strategy work?
- PBMY sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside. When the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.
- How big is PBMY?
- PGIM S&P 500 Buffer 20 ETF - May (PBMY) manages $39.6M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure. Funds below ~$50M are at higher risk of liquidation.
- Is PBMY actively managed or an index fund?
- PBMY's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.
