QMA employs a proprietary multi-factor quantitatively driven investment process for the Fund. The stock selection process utilizes systematic tools that evaluate stocks based on various signals, such as value, quality and volatility, to differentiate between attractive and unattractive stocks, subject to risk constraints. QMA seeks to avoid high premium stocks likely to underperform. The investment management team exercises judgment when evaluating underlying data and positions recommended by its quantitative tools, according to the funds’ prospectus.

Both of the new active ETFs will be managed by Quantitative Management Associates’ Stephen Courtney, Managing Director, and Edward J. Lithgow, Vice President.

“QMA, the Fund’s subadvisor, believes that investors are willing to overpay for stocks that have a low probability of outsized returns or may provide lower risk. QMA’s active, bottom-up approach is designed to avoid these stocks with a multi-factor strategy that links value, quality, and volatility. The result: differentiated multi-factor portfolios, which provide broad exposure to an index while capitalizing on investor bias,” according to PGIM Investments.

For more information on new fund products, visit our new ETFs category.

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