At a glance
PBQQ charges 0.5% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $76.6M in assets, the 8th largest of that group.
The short version
PGIM Laddered Nasdaq-100 Buffer 12 ETF (PBQQ) is a fund of funds. It splits its money about equally among four PGIM Nasdaq-100 Buffer 12 ETFs. Each one uses options on the Invesco QQQ Trust to absorb the first 12% of losses over a one-year period, and in exchange it caps gains. PBQQ's 0.50% expense ratio is the lowest among eight buffer funds compared. It is also the smallest of the eight.
Price history
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PBQQ — 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 | |
|---|---|---|---|---|---|---|
| PBQQ official prospectus, to Dec 31, 2025 | — | +15.06% | — | — | — | — |
| PBQQ price data to Oct 27, 2026 | +3.5% | — | — | — | — | — |
- The deepest fall in its price history was 3.5% (Jun 30, 2026 to Jul 29, 2026), recovered by Aug 4, 2026.
| 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 4 securities; the ten largest made up 99.92% of assets.
| Fund held | Weight | |
|---|---|---|
| PGIM Nasdaq-100 Buffer 12 ETF - July | 25.03% | |
| PGIM Nasdaq-100 Buffer 12 ETF - January | 24.97% | |
| PGIM Nasdaq-100 Buffer 12 ETF - October | 24.97% | |
| PGIM Nasdaq-100 Buffer 12 ETF - April | 24.96% |
By country
United States 99.92%By asset type
Stocks 99.92%What changed recently
- Over the three months to Jul 31, 2026, investors added a net $14.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.81%, +0.12%, -1.45%.
How it works
PBQQ does not buy stocks directly. It holds four PGIM Nasdaq-100 Buffer 12 ETFs in roughly equal weights: the January (PQJA), April (PQAP), July (PQJL) and October (PQOC) versions. As of July 31, 2026, each made up about 25% of assets. Each underlying fund holds FLEX Options on the Invesco QQQ Trust. FLEX Options are exchange-traded options with terms the buyer can customize. QQQ holds the stocks in the Nasdaq-100 Index. PGIM Investments advises the funds, and PGIM Quantitative Solutions is the subadviser.
Each underlying fund aims to match QQQ's price return up to a cap. It also aims to absorb the first 12% of QQQ losses (before fees) over a roughly one-year "target outcome period." When a period ends, the fund rolls into new options and sets a new cap, which depends on market conditions. The four periods are staggered, so one underlying fund resets about every 90 days.
PBQQ has no buffer or cap of its own. It usually buys shares of the underlying funds partway through their periods. By then a buffer may be partly used up, or a cap may be nearly reached. So PBQQ's results can differ widely from what each underlying fund targets. If QQQ falls more than 12% in a period, the losses beyond the buffer pass through.
What it really costs
- PBQQ charges 0.5% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Of that, 0% is the management fee; the rest covers other fund expenses.
- 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 |
|---|---|---|---|---|
| PBQQ | $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.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It keeps exposure to Nasdaq-100 stocks while using option buffers to soften moderate losses, in exchange for capped gains.
PBQQ could let a retirement portfolio hold Nasdaq-100 stocks with some built-in cushioning. Its beta, a measure of how much it moves with the market, was 0.64 as of October 27, 2026. The record is short, though. The fund launched December 27, 2024, so it has not been through the 2008, 2020 or 2022 sell-offs. Its prospectus shows a 15.24% return for 2025, and its weakest quarter was -2.6% (first quarter of 2025). Price data only starts June 9, 2026. Within that window, its deepest drop was 3.5%, and it recovered in about a week. A steep, long tech decline would be the real test, because losses beyond the buffers pass through. Someone selling shares in such a year would feel them. No distributions have been recorded, so it is not an income source. Its 0.50% expense ratio compares with a 0.86% average for similar buffer funds. 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 Nasdaq-100 exposure with a partial cushion against the first 12% of QQQ losses and who accept capped gains in return.
- Cost-conscious buyers of buffer funds: its 0.50% expense ratio is below the 0.86% average of similar buffer ETFs.
- People who don't want to time one buffer fund's start date, since its four staggered underlying funds each reset about every 90 days.
Look elsewhere if
- Anyone who needs income from a holding: no distributions have been recorded for this fund.
- Investors who want a long track record: it launched December 27, 2024, and hasn't been tested by a major bear market.
- Those who want broad diversification: all its exposure runs through QQQ, which holds only Nasdaq-100 stocks and leaves out financial companies.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PBQQ this fund | 0.5% | $76.6M | — | — |
| 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 PBQQ pay dividends?
No distributions have been recorded for PBQQ. The fund aims for capital appreciation, not income. Its four underlying ETFs target the price return of the Invesco QQQ Trust, which leaves out the dividends paid by the Nasdaq-100 stocks QQQ holds. Investors looking for regular payouts from a holding would need another source of income.
Does PBQQ protect against the first 12% of losses?
Not exactly. The 12% buffer belongs to each of PBQQ's four underlying ETFs, measured over each one's roughly one-year period and before fees. PBQQ itself has no buffer or cap of its own. It usually buys the underlying funds partway through their periods, when part of a buffer may already be used up. Its prospectus warns it likely will not get the full benefit of the buffers. Losses beyond the buffers pass through.
What's the difference between PBQQ and BUFR?
Both spread money across a ladder of buffer ETFs. PBQQ's buffers are tied to the Invesco QQQ Trust, which holds Nasdaq-100 stocks. PBQQ costs 0.50% a year, compared with BUFR's 0.95%. BUFR is much larger: $10.5 billion as of August 31, 2026, against about $76.6 million for PBQQ as of July 31, 2026. BUFR returned 11.6% over one year and 16.8% a year over three years as of October 27, 2026. PBQQ has no comparable one-year price record.
How much does PBQQ cost per year?
PBQQ's expense ratio is 0.50%, according to its prospectus filed February 20, 2026. That is the lowest among eight buffer funds compared, whose average is 0.86%. The SEC's standard example assumes $10,000 invested, a 5% annual return and shares sold at the end of each period. On that basis, costs come to about $51 after one year, $160 after three years, $280 after five years and $628 after ten years.
How did PBQQ perform in 2025?
PBQQ returned 15.24% in calendar year 2025, its first full year, according to its prospectus. Its average annual return for one year was 15.06% as of December 31, 2025. Its strongest quarter gained 9.92% (ended June 30, 2025), and its weakest lost 2.6% (ended March 31, 2025). Its price return was 3.5% year to date as of October 27, 2026. That is not a full-year figure.