BlackRock, PGIM Add to Buffer ETF Lineups

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ETF giant BlackRock and PGIM — Prudential Financial’s investment management unit — rolled out more buffer exchange traded funds on the first day of market trading in 2025.

BlackRock introduced the iShares Large Cap Max Buffer Dec ETF, ticker DMAX, to its roster Thursday. The fund has an upside cap of 7.9% for the full one-year hedge period, net of fees (0.50%), and offers investors 100% downside protection. It invests in the iShares Core S&P 500 ETF through a mix of options.

When the asset manager rolled out its first Max Buffer ETF in July, the firm said it expected to launch such products at the start of each quarter “with the cap resetting for each fund upon the option expiry at the end of each one-year period.”

BlackRock says higher one-year interest rates lead to higher starting caps, so investors may prefer its Moderate Buffer ETFs — which aim to provide investors with 5% downside protection — when rates decline.

Buffer ETFs now have close to $50 billion in assets, according to Morningstar.

PGIM & Calamos Products

For its part, PGIM has rolled out the PGIM S&P 500 Max Buffer ETF series, PGIM Nasdaq-100 Buffer 12 ETF series and PGIM Laddered Nasdaq-100 Buffer 12 ETF. Each ETF has a 0.50% net expense ratio.

It also just launched the PGIM U.S. Large-Cap Buffer 12 ETF series and the PGIM U.S. Large-Cap Buffer 20 ETF series on the Cboe BZX. The series have a 12% and 20% buffer, respectively, and will be introduced on a rolling basis the first business day of each month.

The PGIM S&P 500 Max Buffer ETF tracks the SPDR S&P 500 ETF Trust with an upside cap of at least 3% and 100% downside protection. The series will include a new ETF each month, each to be listed on the Cboe BZX.

The PGIM Nasdaq-100 Buffer 12 ETF tracks the Invesco QQQ Trust up to a set upside cap, while providing a downside buffer against the first 12% (before fees and expenses) of QQQ’s losses over its target outcome period. The series will consist of four ETFs, each of which will be listed on the Nasdaq.

The PGIM Laddered Nasdaq-100 Buffer 12 ETF aims to generate capital appreciation by investing in each of the quarterly PGIM Nasdaq-100 Buffer 12 ETFs.

“Investors are increasingly looking for defined outcome solutions that provide upside market exposure and downside protection,” according to PGIM Investments President and CEO Stuart Parker.

“The expansion of our buffered ETF suite makes our offering one of the most comprehensive in the market and is emblematic of our mission to deliver products in line with investor needs,” Parker added.

In addition, alternatives manager Calamos Investments said Thursday that it introduced the Calamos S&P 500 Structured Alt Protection ETF-January with an upside cap rate of 7.57% and the Calamos Russell 2000 Structured Alt Protection ETF- January with a cap of 9.59%.

The two products provide 100% downside protection over a one-year period, before fees and expenses — which are 0.69%. Calamos says its Structured Protection ETF series now includes 14 ETFs.