At a glance
OCTP charges 0.5% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $28.0M in assets, the 8th largest of that group. Over the past year it returned +12.0% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds.
The short version
PGIM S&P 500 Buffer 12 ETF – October (OCTP) is an actively managed ETF that holds FLEX options on the State Street SPDR S&P 500 ETF Trust (SPY), not stocks. Over each one-year period starting October 1, it seeks SPY's price gains up to a cap while cushioning the first 12% of SPY's losses. It charges 0.50%, below the 0.86% average for similar buffer funds, but held just $28 million as of July 31, 2026.
Price history
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OCTP +12.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| OCTP official prospectus, to Dec 31, 2025 | — | +12.77% | — | — | — | +12.42% |
| OCTP price data to Oct 27, 2026 | +11.2% | +12.0% | — | — | — | +13.0% |
- Over the year to Oct 27, 2026, OCTP returned +12.0%, 4th of 8 among similar funds.
- Its worst full calendar year was 2025 (+13.1%); its best was 2025 (+13.1%).
- The deepest fall in its price history was 12% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 23, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.2% | — |
| 2025 | +13.1% | +12.77% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
What's inside
As of Jul 31, 2026, the fund held 0 securities; the ten largest made up 0% of assets.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jul 31, 2026, investors added a net $965K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.46%, +0.15%, +0.78%.
How it works
OCTP is an actively managed ETF from Prudential's PGIM that owns FLEX Options on the State Street SPDR S&P 500 ETF Trust (SPY) rather than stocks. FLEX Options are exchange-traded option contracts with customizable terms, such as price levels and expiration dates. SPY, a unit investment trust, holds S&P 500 stocks in their index weights. As of July 31, 2026, 16 option positions made up 99.4% of assets. The fund tracks SPY's price only, not its dividends.
The fund acquires its options at the start of each one-year outcome period, and they can be exercised only on its last day. For October 1, 2025 through September 30, 2026, it sought SPY's price gain up to a 13.41% cap and protection from the first 12% of SPY losses, both before fees (12.91% and 11.5% after the management fee). Deeper losses pass through one-for-one: a 25% SPY drop would mean about a 13% fund loss.
Each October 1, the fund rolls into new options. The 12% buffer stays fixed, but the cap resets with market conditions. These targets apply only to someone who holds from a period's first day to its last. Getting in or out partway can produce very different results. The Options Clearing Corporation guarantees the contracts, reducing but not removing the risk that the other side fails to pay.
What it really costs
- OCTP charges 0.5% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| OCTP | $51 | $160 | $280 | $628 |
Structure and tax notes
- Organized as a unit investment trust: it cannot lend out its securities or reinvest dividends between payouts, which can create a small drag versus similar open-end ETFs.
- Uses options to limit losses within a range (the buffer) in exchange for a cap on gains over each outcome period; results depend on when you buy relative to the period start.
In a retirement portfolio
It keeps S&P 500 exposure but uses options to cushion the first 12% of SPY's losses in each outcome period, giving up gains above a cap in return.
OCTP may soften a stock-market fall for retirees: over each October-to-September period, it seeks to shield holders from the first 12% of SPY's losses, in exchange for capped gains. Launched in May 2024, it has no record from the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 12.77%. Its deepest drop, 12%, ran from February 19 to April 8, 2025. It recovered by June 23, about 2.5 months later. The buffer is designed for full-period holders: someone forced to cash out during a slump could lose more than expected.
It pays no income, so withdrawals would mean cashing out shares. Its 0.50% expense ratio, about $51 in the first year on $10,000 under the SEC's standard example, is below the 0.86% average for similar buffer funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting S&P 500 price exposure with a cushion against the first 12% of SPY's losses each October-to-September period, accepting capped gains.
- Cost-conscious investors comparing buffer funds: its 0.50% expense ratio is the lowest of eight compared, versus a 0.86% average for seven peers.
- Patient holders able to invest near October 1 and stay through September 30, the window in which the cap and buffer apply as designed.
Look elsewhere if
- Retirees needing regular income: OCTP recorded no distributions, and its returns exclude dividends paid by the stocks SPY holds.
- Investors unwilling to give up big rallies: for October 2025 to September 2026, SPY gains beyond a 13.41% cap, before fees, were excluded.
- Anyone who may need to cash out mid-period: OCTP fell 12% from February 19 to April 8, 2025, despite its buffer.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| OCTP this fund | 0.5% | $28.0M | +12.0% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does OCTP pay dividends?
No. OCTP has no recorded distributions. It holds options on the State Street SPDR S&P 500 ETF Trust (SPY) rather than the stocks themselves, and its targets are based only on SPY's share price. That means dividends paid by S&P 500 companies are not passed through. Giving up that dividend stream is one of the trade-offs of the buffer structure. Investors who need regular cash from a holding would have to cash out shares or rely on other holdings.
How does the OCTP buffer work?
OCTP aims to protect shareholders from the first 12% of SPY's price decline over a one-year outcome period running October 1 to September 30. That is before fees; after its management fee, the buffer is 11.5%. If SPY falls further, the fund takes the extra losses one-for-one: a 25% SPY drop would leave it down about 13% before fees. The buffer works as designed only for those who hold shares for the entire period, from the first day to the last.
What is the OCTP upside cap?
For the outcome period from October 1, 2025 through September 30, 2026, OCTP's cap was 13.41% before fees, or 12.91% after its management fee. That was roughly the most a full-period shareholder could earn, even if SPY rose more. The cap resets every October 1, when the fund acquires new options, and depends on market conditions at that time. Later periods carry different caps, while the 12% buffer stays the same each period.
Can you lose money in OCTP?
Yes. The buffer covers only the first 12% of SPY's losses over a full outcome period and does not protect principal. Losses beyond that pass through one-for-one. Prices also swing within a period: OCTP fell 12% from February 19 to April 8, 2025, then recovered by June 23, 2025. Anyone who cashed out near the low locked in that loss. Its prospectus also shows a worst quarter of -2.33%, for the three months ended March 31, 2025.
What's the difference between OCTP and BUFR?
Both are buffer ETFs, but OCTP is cheaper and much smaller. OCTP charges 0.50% a year versus 0.95% for FT Vest Laddered Buffer ETF (BUFR). BUFR held about $10.5 billion as of August 31, 2026, against roughly $28 million for OCTP as of July 31, 2026. OCTP is tied to a single October reset, while a laddered fund like BUFR spreads its money across several start dates. One-year returns through October 27, 2026 were 12.0% for OCTP and 11.6% for BUFR.