At a glance
PBOC charges 0.5% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $46.0M in assets, the 8th largest of that group. Over the past year it returned +9.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
PGIM S&P 500 Buffer 20 ETF - October (PBOC) is an actively managed ETF from Prudential. It holds FLEX options on the SPDR S&P 500 ETF Trust (SPY), not stocks. Over each one-year period starting October 1, it aims to absorb the first 20% of SPY's price loss, and in exchange it caps gains. Its 0.50% expense ratio is the lowest among eight comparable buffer ETFs, which average 0.86%.
Price history
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PBOC +9.2% 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 | |
|---|---|---|---|---|---|---|
| PBOC official prospectus, to Dec 31, 2025 | — | +9.84% | — | — | — | +9.85% |
| PBOC price data to Oct 27, 2026 | +8.5% | +9.2% | — | — | — | +10.1% |
- Over the year to Oct 27, 2026, PBOC returned +9.2%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+10.2%); its best was 2025 (+10.2%).
- The deepest fall in its price history was 8.3% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 3, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +8.5% | — |
| 2025 | +10.2% | +9.84% |
| 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 $8.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.71%, +0.25%, +0.77%.
How it works
PBOC does not own S&P 500 stocks directly. Nearly all of its money goes into FLEX Options on SPY. These are exchange-traded options whose terms, such as strike price and expiration date, can be customized. SPY itself is a unit investment trust that holds the S&P 500 stocks at their index weights. As of July 31, 2026, 99.54% of PBOC's $46.0 million in net assets sat in 16 option positions, with about 0.5% in cash. The Options Clearing Corporation guarantees the options and acts as the counterparty.
Each outcome period runs from October 1 to September 30. For the period that ended September 30, 2026, the cap on gains was 10.32% before fees, or 9.82% after the 0.50% management fee. The buffer covers the first 20% of SPY's price loss, or 19.5% after the fee. If SPY falls more than 20%, the fund takes the rest one-for-one, so a 25% SPY drop means roughly a 5% loss before fees. Returns are based on SPY's price alone and leave out its dividends.
On October 1 each year, the fund resets with new options. The buffer stays at 20%, but the cap changes with market conditions. The options can only be exercised on the last day of the period. Someone who buys partway through or sells early may get results very different from the stated buffer and cap.
What it really costs
- PBOC 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 |
|---|---|---|---|---|
| PBOC | $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 away some stock market upside to soften the first 20% of an annual S&P 500 price decline, which makes it a lower-volatility way to hold stocks.
PBOC may appeal to retirees who worry about a sharp stock drop right before or during withdrawals. As of October 27, 2026, its one-year volatility was 5.1% and its beta was 0.36, which means it moved roughly a third as much as the market. Its record is short. It launched May 16, 2024, so it missed the 2008, 2020 and 2022 sell-offs, and its buffer has never been tested in a deep bear market. Its deepest drop was 8.3%, from February 19 to April 8, 2025, and it recovered in about two months. It has one full calendar year, 2025, when it returned 9.84%. It paid no distributions, so it provides no income. Selling shares mid-period may not capture the full buffer. It costs 0.50%, or $51 in the first year on $10,000. Past results don't predict future ones, and a plan should 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 exposure with the first 20% of a yearly SPY price drop buffered, and who accept a cap on gains in return.
- Buyers who can buy near October 1 and hold through September 30, the window when the buffer and cap work as designed.
- Cost-conscious buffer-fund shoppers: its 0.50% expense ratio is below the 0.86% average of seven larger buffer ETFs.
Look elsewhere if
- Income seekers: the fund has paid no distributions, and its returns leave out the dividends SPY's stocks pay.
- Investors who want full stock market gains: the cap was 10.32% before fees for the period ending September 30, 2026.
- Those who want a long record or a large fund: it launched May 2024 and had about $46 million in net assets, the smallest among its peers.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PBOC this fund | 0.5% | $46.0M | +9.2% | — |
| 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 PBOC pay dividends?
No. PBOC has no recorded distributions. The fund holds options on SPY rather than the stocks, so its returns follow SPY's share price only. They do not include the dividends paid by S&P 500 companies. Compared with owning SPY directly, holders give up that dividend income, a cost that doesn't show up in the 0.50% expense ratio. Investors who need regular cash payouts would have to sell shares to get it.
What is the PBOC cap and buffer?
The buffer is fixed at the first 20% of SPY's price loss over each one-year period, or 19.5% after the management fee. The cap changes every October 1. For October 1, 2025 through September 30, 2026, it was 10.32% before fees and 9.82% after. A new cap was set when the next period began on October 1, 2026, based on market conditions at that time. Its level is published by the issuer.
What happens if I buy PBOC in the middle of the outcome period?
You may get a different result from the stated buffer and cap. The fund's options can only be exercised on the final day of each period, which ends September 30. If the fund has already risen since October 1, a mid-period buyer has less room left under the cap. If it has fallen, part of the buffer may already be used up. Selling before the period ends can also produce outcomes very different from the fund's targets.
PBOC vs BUFD: what's the difference?
Both are buffer ETFs tied to US stocks, but they differ in cost, size and design. PBOC charges 0.50% and resets once a year on October 1. FT Vest Laddered Deep Buffer ETF (BUFD) charges 0.95% and, as its name says, spreads money across several staggered buffer periods, so less depends on one start date. BUFD is far larger, at about $2.04 billion versus PBOC's $46 million. As of October 27, 2026, one-year returns were 9.5% for BUFD and 9.2% for PBOC.
Can you lose money in PBOC?
Yes. The buffer offers only partial protection, not a guarantee of your principal. If SPY's price falls more than 20% over an outcome period, PBOC takes the extra loss one-for-one, and fees reduce the protection further. Holders who buy or sell partway through a period can also lose money even in smaller declines. The fund's deepest drop so far was 8.3%, from February to April 2025. It launched in 2024, so it has never been through a major bear market.