Prudential Enters ETF Arena

April 11, 2018

Insurance and financial services giant Prudential has entered the ETF market with the launch of its first fund. The PGIM Ultra Short Bond ETF (PULS) is actively managed and invests primarily in bonds of varying maturities that are denominated in U.S. dollars.

PULS comes with an expense ratio of 0.15% and lists on the NYSE Arca.

Methodology

Although ostensibly a “short” fund, PULS may invest in investment-grade securities of any duration or maturity, the prospectus says. However, it will generally target a weighted average duration of no more than one year, and a weighted average maturity that tops out at three years.

The two most comparable funds include the JPMorgan Ultra-Short Income ETF (JPST), which has $308 million in assets under management, and the iShares Ultra Short-Term Bond ETF (ICSH), with $248 million in assets. JPST has an expense ratio of 0.18%, while ICSH charges just 0.08%.

Prudential is just the newest massive firm to get into ETFs. Last year saw firms such as USAA, Transamerica and Nationwide launch their first funds in the space. Often as not, the firms are launching products they can use in their own in-house strategies and portfolios.

Contact Heather Bell at [email protected]

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