Active Junk Bond ETF Launches

Today Prudential’s PGIM Investments unit has rolled out its second ETF, an actively managed junk bond fund. The PGIM Active High Yield Bond ETF (PHYL) invests in government and corporate debt issued by U.S. and non-U.S. entities.

PHYL comes with an expense ratio of 0.53% and lists on the NYSE Arca.

The fund managers consider overall economic conditions as well as the characteristics of individual issuers when making portfolio decisions. Up to 25% of the portfolio can be invested in derivatives, and up to 20% can be invested in debt denominated in non-U.S. currencies, which the fund will hedge.

PHYL joins the $64 million PGIM Ultra Short Bond ETF (PULS), which launched in April.

Contact Heather Bell at [email protected]