PGIM Keeps Betting on Active Management With New Trio of ETFs

The firm plans to grow its $3.8 billion ETF suite.

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Reviewed by: Zoya Mirza
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Edited by: Zoya Mirza

PGIM Investments, the global asset management arm of Prudential Financial Inc., launched three actively managed exchange-traded funds Wednesday, bringing PGIM’s ETF lineup to eight funds—all of which are actively managed. 

The PGIM Jennison Focused Growth ETF (PJFG), the PGIM Jennison Focused Value ETF (PJFV) and the PGIM Portfolio Ballast ETF (PBL) all listed on the NYSE Arca. PGIM’s ETFs have $3.8 billion in assets under management.  

Currently, passive funds outnumber active, according to ETF.com data, which shows there are 2,082 passive ETFs compared to 999 active funds in the U.S.  

But the number of actively managed funds launches has been outpacing passively managed funds, and is poised to jump to a quarter of the ETF portfolios next year from 19%, according to a JPMorgan Asset Management survey cited by Bloomberg.  

PGIM “continues to believe that active management will deliver alpha for clients over the long term,” the firm’s Head of ETFs Matt Collins told ETF.com. "Active ETFs are the fastest-growing segment of the ETF market, and we are excited to offer our investment capabilities in the ETF wrapper." 

PJFG will focus primarily on medium and large cap companies, and invest in the equity and equity-related securities of companies that demonstrate strong capital appreciation potential, the issuer said. 

PJFV will concentrate mostly on large cap companies and invest in firms that are undervalued, according to the firm’s evaluations.  

And PBL aims to limit investors’ exposure to market turbulence over the course of a full market cycle. The ETF’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,” according to the fund’s prospectus. 

PJFG and PJFV both come with expense ratios of 0.75%, while PBL has an expense ratio of 0.45%. 

PGIM shared plans of expanding its ETF offerings across a range of asset classes going forward. Future funds will offer “a healthy mix of ETFs that mirror both existing strategies and new ideas from our asset management teams over time,” Collins said. 

 

Contact Zoya Mirza at [email protected] 

Zoya Mirza is a markets reporter at etf.com. Her work has appeared in USA Today, Voice of America, and United Press International, among others. Mirza is a graduate of Northwestern University’s Medill School of Journalism. Her past experiences include editorial work in book publishing and conducting political analysis for NGOs and think tanks. Mirza is a passionate bibliophile and collects vintage postcards from every bookstore she visits in a new city.