At a glance
PBFB charges 0.5% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $38.5M in assets, the 8th largest of that group. Over the past year it returned +9.6% with distributions reinvested (S&P 500: +11.5%), 7th of those 8 funds.
The short version
PGIM S&P 500 Buffer 20 ETF - February (PBFB) is an actively managed ETF from Prudential's PGIM. Instead of owning stocks, it holds FLEX options on the SPDR S&P 500 ETF Trust (SPY). Over each February-to-January period, it aims to absorb the first 20% of SPY's price losses. In return, gains are capped at 10.65% before fees through January 31, 2027. Its 0.50% expense ratio is the lowest of eight buffer funds compared.
Price history
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PBFB +9.6% 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 | |
|---|---|---|---|---|---|---|
| PBFB official prospectus, to Dec 31, 2025 | — | +9.67% | — | — | — | +10.76% |
| PBFB price data to Oct 27, 2026 | +7.9% | +9.6% | — | — | — | +10.2% |
- Over the year to Oct 27, 2026, PBFB returned +9.6%, 7th of 8 among similar funds.
- Its worst full calendar year was 2025 (+9.9%); its best was 2025 (+9.9%).
- The deepest fall in its price history was 8.7% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 6, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.9% | — |
| 2025 | +9.9% | +9.67% |
| 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 $3.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.69%, +0.06%, +0.62%.
How it works
PBFB does not own S&P 500 stocks. Its manager puts substantially all assets into FLEX Options on the SPDR S&P 500 ETF Trust (SPY). FLEX Options are exchange-traded options with customized strike prices and expiration dates. SPY is a unit investment trust that holds S&P 500 stocks at index weights. As of July 31, 2026, these options made up about 99.4% of net assets, with about 0.6% in cash. Returns follow SPY's price only, so dividends are not passed through.
The outcome period that began February 1, 2026 ends January 31, 2027. If SPY's price rises, the fund aims to match the gain up to a cap of 10.65% before fees (10.15% after its management fee). If SPY falls, the fund aims to absorb the first 20% of losses (19.5% after the fee). Beyond that, losses pass through one for one. A 25% drop in SPY would mean about a 5% loss before fees.
These results apply only to shares held for the full period, because the options can be exercised only on its last day. Buying or selling midway can give very different outcomes. Each February the fund resets with new options. The 20% buffer stays the same, but the cap changes with market conditions. There is no principal protection.
What it really costs
- PBFB 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 |
|---|---|---|---|---|
| PBFB | $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
Its 20% buffer and low volatility aim to soften stock-market losses, at the cost of capped gains and no income.
PBFB launched on January 31, 2024, so it has no record from the 2008, 2020 or 2022 downturns. Its deepest drop was 8.7%, from February 19 to April 8, 2025. It recovered by June 6, 2025, in about two months. Its only full calendar year, 2025, returned 9.67%, according to the prospectus. For someone who may need to sell in a bad year, the buffer fully applies only to shares held from February 1 through January 31. Shares sold midway go at market prices.
The fund pays no distributions, so it cannot supply income on its own, and its returns exclude SPY's dividends. Costs are 0.50% a year, below the 0.86% peer average. That works out to $51 in the first year on $10,000 under the SEC's standard example. 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 exposure with the first 20% of yearly price losses buffered, who accept a 10.65% pre-fee cap through January 2027.
- Cost-conscious buffer buyers: the 0.50% expense ratio is well below the 0.86% average of similar buffer ETFs.
- Holders willing to buy near February 1 and hold through January 31, when the full buffer and cap apply.
Look elsewhere if
- Investors who need regular income: the fund has paid no distributions, and its returns exclude SPY's dividends.
- Those wanting full stock-market upside: its 9.6% one-year return trailed most buffer peers, such as FFEB's 12.9%, as of October 27, 2026.
- Investors wary of small funds: at $38.5 million in net assets (July 31, 2026), it was the smallest of eight buffer funds compared.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PBFB this fund | 0.5% | $38.5M | +9.6% | — |
| 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 PBFB pay dividends?
No. PBFB has no recorded distributions. It holds options on SPY rather than the stocks themselves, and its returns are based on SPY's price return only. So the dividends paid by S&P 500 companies are not passed through. That is a hidden cost compared with owning SPY directly. It also means the fund cannot provide regular income for a retirement budget. Holders who need cash would have to sell shares.
How does the PBFB 20% buffer work?
Each outcome period runs from February 1 through January 31. Over that period, PBFB aims to absorb the first 20% of SPY's price decline before fees, or 19.5% after its 0.50% management fee. If SPY falls more than 20%, the fund takes further losses one for one, so a 25% SPY drop would mean about a 5% loss before fees. The buffer fully applies only to shares bought at the start of the period and held to its end.
What is the PBFB cap for the 2026–2027 period?
For the period from February 1, 2026 to January 31, 2027, PBFB's cap is 10.65% before fees and 10.15% after its management fee. That is the most someone holding for the full period can gain, even if SPY rises more. The cap resets each February based on market conditions, so it is likely to differ from one period to the next. The 20% buffer stays the same.
PBFB vs FFEB: what's the difference?
Both are February-series buffer ETFs on US stocks, but they differ in cost, size and results. PBFB charges 0.50% a year, versus 0.85% for FT Vest U.S. Equity Buffer Fund - February (FFEB). FFEB is far larger, at about $1.4 billion in net assets as of August 31, 2026, versus about $38.5 million for PBFB as of July 31, 2026. FFEB's one-year return was 12.9%, versus 9.6% for PBFB, as of October 27, 2026. Their buffer and cap levels may differ, so the two prospectuses are worth comparing.
Is PBFB good for retirement?
It depends on the role it plays. PBFB may suit retirees who want stock exposure with the first 20% of yearly SPY price losses buffered, and who accept capped gains and no income. Its deepest drop was 8.7% in early 2025, and it recovered in about two months. But it launched in January 2024, so it has no record through the 2008, 2020 or 2022 downturns. Selling partway through a period can also mean less protection than the buffer suggests.