PGIM Investments has launched three actively managed ETFs: the PGIM Jennison Focused Growth ETF (NYSE Arca: PJFG), the PGIM Jennison Focused Value ETF (NYSE Arca: PJFV), and the PGIM Portfolio Ballast ETF (NYSE Arca: PBL). These new funds complement PGIM’s suite of actively managed fixed income ETFs and bring its lineup of active ETFs to eight.
“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,” said Stuart Parker, president and CEO of PGIM Investments, in a news release.
The PGIM Jennison funds (PJFG and PJFV) are fully transparent ETFs with concentrated, high-conviction portfolios. Jennison’s equity investment approach is based on fundamental research and bottom-up security selection.
PJFG seeks to provide long-term growth of capital by investing in a focused portfolio of primarily mid- and large-capitalization stocks believed to have strong capital appreciation potential. The fund’s investment team believes that excess returns can be generated by investing in market-leading companies that create economic value through unique business models, long-duration competitive advantages, and catalysts that drive growth rates well above that of the market.
PJFV seeks to provide long-term growth of capital by investing in a focused portfolio of predominantly large-capitalization companies believed to be undervalued compared to their perceived worth. The fund’s investment team looks for companies that have one or more of the following characteristics: attractive valuation metrics that are unique to that business, high levels of durability and viability of the business, good business models that are being mispriced, high returns on assets and/or equity, high free cash flow yields, management teams that are willing to make changes, and/or something operationally wrong that can be fixed or is temporary.
PBL seeks to provide long-term capital growth with reduced volatility compared to the equity market. PBL’s long-term goal is to capture 60% of the performance of the S&P 500 on average in appreciating equity markets, and to capture 30% of the performance of the S&P 500 on average in declining equity markets over a market cycle. Its underlying strategy is similar to the U.S. Market Participation Strategy (MPS) — an institutional strategy with a live 30-year track record.
“Advisors have gained comfort with active ETFs in 2022. Large active managers continue to bring security selection expertise into the ETF world to meet advisors where they are,” said Todd Rosenbluth, head of research at VettaFi.