At a glance
SEPP charges 0.5% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $24.6M in assets, the 8th largest of that group. Over the past year it returned +10.1% with distributions reinvested (S&P 500: +11.5%), 7th of those 8 funds.
The short version
Prudential's PGIM S&P 500 Buffer 12 ETF - September (SEPP) holds customized options on the State Street SPDR S&P 500 ETF Trust (SPY), not stocks. Over each one-year period starting September 1, it aims to absorb the first 12% of SPY's price losses, in exchange for capped gains (13.53% before fees for September 2025 to August 2026) and no dividends. Its 0.50% expense ratio is the lowest of eight buffer funds compared.
Price history
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SEPP +10.1% 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 | |
|---|---|---|---|---|---|---|
| SEPP official prospectus, to Dec 31, 2025 | — | +13.76% | — | — | — | +13.14% |
| SEPP price data to Oct 27, 2026 | +9.2% | +10.1% | — | — | — | +12.3% |
- Over the year to Oct 27, 2026, SEPP returned +10.1%, 7th of 8 among similar funds.
- Its worst full calendar year was 2025 (+14.1%); its best was 2025 (+14.1%).
- The deepest fall in its price history was 11.8% (Feb 19, 2025 to Apr 8, 2025), recovered by Jun 10, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.2% | — |
| 2025 | +14.1% | +13.76% |
| 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 $3.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.09%, +0.37%, +0.89%.
How it works
SEPP, an actively managed ETF, owns no stocks directly. It puts substantially all its assets into FLEX options on the State Street SPDR S&P 500 ETF Trust (SPY). These are exchange-traded contracts with customizable terms, and their value depends on SPY's price. As of July 31, 2026, 12 option positions made up 99.47% of assets, led by a call option on SPY (which gains as SPY rises) worth about 53%; cash was 0.57%.
Each one-year outcome period runs from September 1 to August 31. On the first day, the fund invests in new options that set a cap, the most it can gain. It also aims to absorb the first 12% of any fall in SPY's price. That buffer stays fixed, while the cap shifts with market conditions. For September 2025 through August 2026, the cap was 13.53% before fees (13.03% after the management fee) and the buffer was 11.5% after the fee. Beyond 12%, losses pass through one for one: a 25% drop in SPY would cost the fund about 13% before fees.
The options can be exercised only on the period's last day. So these targets apply only to shareholders who hold for the whole period, and trading mid-period can give different results. Returns follow SPY's price, not its dividends. The Options Clearing Corporation guarantees the options.
What it really costs
- SEPP 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 |
|---|---|---|---|---|
| SEPP | $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 offers S&P 500 price exposure with a 12% buffer against losses over each one-year outcome period, at the cost of capped gains and no dividends.
SEPP could soften stock-market swings: over the year to October 27, 2026, it moved about half as much as the market (a beta of 0.52). Launched May 14, 2024, it has no record from the 2008, 2020 or 2022 downturns. Its only full calendar year, 2025, returned 13.76%. Its deepest drop was 11.8%, from February 19 to April 8, 2025; it recovered in about two months. The buffer applies over a full outcome period, so exiting during a slump may not capture its full protection.
SEPP has paid no distributions and gives up S&P 500 dividends, so it provides no income. Its 0.50% expense ratio is below the 0.86% average of similar buffer funds. The SEC's example puts costs on $10,000 at $51 for one year and $628 over 10 years. 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 wanting S&P 500 price exposure with the first 12% of losses buffered over each September-to-August period, who accept capped gains.
- Cost-conscious buffer-fund investors: its 0.50% expense ratio ranks lowest of eight similar funds compared, against a 0.86% peer average.
- Patient holders who can invest near September 1 and stay in until August 31, since the cap and buffer apply only over the full period.
Look elsewhere if
- Anyone who needs income: SEPP has paid no distributions, and its returns exclude dividends from S&P 500 companies.
- Investors wanting full stock-market upside: gains stop at the cap, which was 13.53% before fees for September 2025 through August 2026.
- Those who prefer larger funds: with $24.6 million in net assets as of 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 |
|---|---|---|---|---|
| SEPP this fund | 0.5% | $24.6M | +10.1% | — |
| 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 SEPP pay dividends?
No. SEPP has paid no distributions. It holds FLEX options, which are customized exchange-traded options, on the State Street SPDR S&P 500 ETF Trust (SPY) instead of stocks. Its prospectus says its performance will not reflect dividends paid by SPY or S&P 500 companies. Giving up those dividends is a hidden cost compared with owning an S&P 500 index fund directly. Investors who depend on portfolio income may find it a poor match.
Can you lose money in SEPP?
Yes. SEPP aims to absorb the first 12% of any fall in SPY's share price over each September-to-August outcome period. Deeper losses pass through one for one: if SPY drops 25%, the fund is expected to lose about 13% before fees. The buffer applies only to shareholders who hold for the full period. The fund's price fell 11.8% between February 19 and April 8, 2025, and the prospectus warns that shareholders could lose their entire investment.
What is SEPP's upside cap?
For the outcome period from September 1, 2025 through August 31, 2026, SEPP's cap was 13.53% before fees, or 13.03% after its 0.50% management fee, according to the prospectus filed February 20, 2026. The fund sets a new cap when each period begins, based on market conditions, so the cap can rise or fall from year to year. The 12% buffer stays the same. Someone investing mid-period after a rally may have little upside left before hitting the cap.
What's the difference between SEPP and FDEC?
Both are month-specific U.S. stock buffer ETFs. SEPP's outcome period starts September 1, while FT Vest US Equity Buffer ETF - December (FDEC) is tied to December. SEPP costs less, 0.50% a year versus 0.85%, and is far smaller: $24.6 million in net assets as of July 31, 2026, against about $1.31 billion for FDEC as of August 31, 2026. In the year to October 27, 2026, FDEC returned 12.9% and SEPP 10.1%, though different start dates and terms limit the comparison.
Is SEPP good for retirement?
It can play a defensive role, but with trade-offs. SEPP aims to absorb the first 12% of SPY's price losses over each one-year period. Over the year to October 27, 2026, it moved about half as much as the market (a beta of 0.52). In return, gains are capped, it has paid no distributions, and its record is short: it launched May 14, 2024. Under the SEC's standard example, its 0.50% expense ratio works out to $51 in the first year on $10,000.