At a glance
PBAU charges 0.5% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $28.5M in assets, the 8th largest of that group. Over the past year it returned +8.7% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
PGIM S&P 500 Buffer 20 ETF - August (PBAU) is an actively managed ETF that holds options on the State Street SPDR S&P 500 ETF Trust (SPY), not stocks. Over each one-year period starting in August, it aims to absorb the first 20% of SPY's price losses in exchange for capped gains (11.18% before fees for the period ended July 31, 2026). Its 0.50% expense ratio is below the 0.86% average of similar buffer funds.
Price history
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PBAU +8.7% 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 | |
|---|---|---|---|---|---|---|
| PBAU official prospectus, to Dec 31, 2025 | — | +11.47% | — | — | — | +11.57% |
| PBAU price data to Oct 27, 2026 | +7.8% | +8.7% | — | — | — | +10.9% |
- Over the year to Oct 27, 2026, PBAU returned +8.7%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+11.7%); its best was 2025 (+11.7%).
- The deepest fall in its price history was 9% (Feb 18, 2025 to Apr 8, 2025), recovered by Jun 3, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.8% | — |
| 2025 | +11.7% | +11.47% |
| 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 $4.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.39%, +0.50%, +0.64%.
How it works
PBAU puts substantially all its assets into FLEX Options on the State Street SPDR S&P 500 ETF Trust (SPY), which holds S&P 500 stocks. FLEX Options are exchange-traded option contracts with custom terms, such as the expiration date and the price at which they pay off. The fund is actively managed, but it chooses option contracts, not stocks. As of July 31, 2026, options were 99.6% of net assets.
Each one-year outcome period runs from about August 1 to July 31. If SPY's price rises, the fund aims to match the gain up to a cap: 11.18% before fees for the period ended July 31, 2026, or 10.68% after the management fee. If SPY falls, the fund aims to absorb the first 20% of the loss (19.5% after the fee). Deeper losses pass through one for one: a 25% SPY drop means about a 5% fund loss before fees. Returns follow SPY's price only, without its dividends.
At each reset, the fund moves into a new set of options. The 20% buffer stays the same, but the cap resets based on market conditions. The options can be exercised only on the period's last day, so the stated outcomes apply only to shares held from start to finish. Anyone who gets in or out partway through may see very different results.
What it really costs
- PBAU 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 |
|---|---|---|---|---|
| PBAU | $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 trades gains above a yearly cap for a buffer against the first 20% of SPY's price losses, aiming for a steadier ride than owning stocks outright.
PBAU launched in May 2024, so it missed the 2008, 2020 and 2022 downturns. Its only full calendar year, 2025, returned 11.47%, and its weakest quarter fell 1.47%. Its deepest drop, 9% from February 18 to April 8, 2025, was recovered by June 3. It came partway through an outcome period, so anyone cashing out near the low missed the buffer's full protection. Over the year to October 27, 2026, its beta was 0.32, meaning it moved roughly a third as much as the market.
It has made no distributions and gives up SPY's dividends, so spending money would come from cashing in shares. Under the SEC's standard example, the 0.50% expense ratio costs $51 on $10,000 in the first year and $628 over 10 years. Past results don't predict future ones, and a plan needs to look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want S&P 500 price exposure with a cushion against the first 20% of SPY losses each August-to-July period, and accept capped gains.
- Cost-conscious buffer investors: its 0.50% expense ratio was the lowest of eight buffer funds compared, against a 0.86% average for the others.
- Holders able to stay invested from August 1 through July 31, the window over which the 20% buffer and the cap fully apply.
Look elsewhere if
- Anyone who needs income: PBAU had recorded no distributions as of October 27, 2026, and its returns exclude the dividends SPY pays.
- Those seeking full market gains: upside is capped each period, and its 8.7% one-year return to October 27, 2026 trailed seven similar buffer funds.
- Investors who may need cash mid-period: the price fell 9% from February to April 2025; the buffer fully applies only at period end.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PBAU this fund | 0.5% | $28.5M | +8.7% | — |
| 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
What is PBAU's upside cap?
For the outcome period from August 1, 2025 through July 31, 2026, PBAU's cap was 11.18% before fees, or 10.68% after its 0.50% management fee. That is roughly the most a holder could earn over the full period, however much SPY rose. The cap resets at the start of each new period based on market conditions, so it is unlikely to stay the same from one year to the next. The 20% buffer does not change.
Does PBAU pay dividends?
No. As of October 27, 2026, PBAU had recorded no distributions, and its prospectus says its performance will not reflect dividends paid by SPY or the stocks in the S&P 500. Its options follow SPY's price only. That means holders give up the dividend income an S&P 500 index fund pays, which is part of the trade-off for the buffer. It may not suit investors who need regular income.
Can you lose money in PBAU?
Yes. The buffer covers only the first 20% of SPY's price loss over a full outcome period, or 19.5% after the management fee. Beyond that, losses pass through one for one: a 25% SPY drop would mean about a 5% loss before fees. The fund does not offer principal protection. Prices also move during the period: PBAU fell 9% between February 18 and April 8, 2025, before recovering by June 3, 2025.
What happens if you invest in PBAU partway through the outcome period?
The stated buffer and cap may not apply. PBAU's buffer and cap are measured from the first day of each outcome period to the last, when its FLEX Options can be exercised. If SPY has risen since the period began, less upside may remain before the cap; if it has fallen, part of the buffer may already be used up. Exiting before the period ends can also produce very different results from those the fund targets.
PBAU vs BUFD: what's the difference?
Both are buffer ETFs, but they differ in cost, size and structure. PBAU charges 0.50% a year and had about $28.5 million in net assets as of July 31, 2026. FT Vest Laddered Deep Buffer ETF (BUFD) charges 0.95% and had about $2.04 billion as of August 31, 2026. A laddered fund generally spreads money across buffer periods that start in different months, while PBAU resets once a year, in August. Over the year to October 27, 2026, BUFD returned 9.5% and PBAU 8.7%.