PGIM launches three new active ETFs | ETF Strategy

PGIM Investments has launched three new fully transparent, actively managed ETFs on NYSE Arca.

Stuart Parker, President and CEO of PGIM Investments

Stuart Parker, President and CEO of PGIM Investments

Two of the ETFs – the PGIM Jennison Focused Growth ETF (PJFG US) and PGIM Jennison Focused Value ETF (PJFV US) – provide high-conviction exposure to US equities with growth or value characteristics.

The funds, which come with expense ratios of 0.75% each, are sub-advised by Jennison Associates, a fundamental investment manager with a 50+ year track record specializing in concentrated active equity strategies.

PJFG invests in large and mid-cap companies determined by Jennison to have unique business models, long-duration competitive advantages, and catalysts that can drive growth rates well above that of the market.

PJFV, meanwhile, targets undervalued large-cap companies with at least one of the following characteristics: attractive valuations that are unique to that business, high levels of business durability and viability, sustainable business models, high returns on assets or equity, high free cash flow yields, and adaptive management teams.

PGIM’s third newly launched ETF – the PGIM Portfolio Ballast ETF (PBL US) – is designed to provide US large-cap equity exposure while offering stability through turbulent markets.

Managed by PGIM Quantitative Solutions, the quantitative and multi-asset division of PGIM, PBL aims to capture 60% of the S&P 500‘s performance in appreciating markets while limiting losses to 30% of the S&P 500’s performance in declining markets. The strategy is implemented using a combination of US Treasuries and option contracts on the S&P 500 Index or SDPR S&P 500 ETF.

PBL comes with an expense ratio of 0.45%.

Stuart Parker, President and CEO of PGIM Investments, said: “PGIM continues to expand access to our time-tested investment strategies by bringing them to market in the ETF wrapper. These new funds offer compelling investment strategies, combined with the benefits of the ETF structure, including increased transparency and greater tax efficiency.”