PGIM Adds Mutual Fund Twin To ETF Lineup

December 08, 2021

Today, PGIM Investments rolled out an ETF that is twinned with one of its existing mutual funds. The actively managed PGIM Total Return Bond ETF (PTRB) uses the same approach and management team as the $56 billion PGIM Fixed Income Total Return Bond mutual fund, a 25-year-old  mutual fund.

PTRB comes with an expense ratio of 0.49% and lists on the NYSE Arca. That’s the same expense ratio as charged by the Class Z shares of the mutual fund but far cheaper than the Class A shares, which charge 0.76%.

The new ETF, like its mutual fund version, looks to deliver total return through current income and capital appreciation.

It has wide latitude to invest across the universe of fixed income securities, with preferred stocks excluded from the mix and the main requirement being that the securities selected for the portfolio have more than a year maturity at their issuance date. Up to 30% of the portfolio can be invested in junk bonds, and another 30% can be invested in foreign securities, according to the prospectus.

The investment process for PTRB melds top-down economic analysis with bottom-up research. It also incorporates PGIM’s in-house models, risk management systems and investment factors. The document additionally notes that the fund may engage in frequent trading as needed to achieve its objectives.

PTRB joins four other ETFs offered by PGIM, all of which are actively managed and have more than $2 billion in combined assets under management.

Contact Heather Bell at [email protected]

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