On Friday, Prudential’s PGIM arm launched two actively managed ETFs that use a factor-based approach to outperform the growth and value segments of the Russell 200 Index.
The PGIM QMA Strategic Alpha Small-Cap Growth ETF (PQSG) and the PGIM QMA Strategic Alpha Small-Cap Value ETF (PQSV) use factors like value, quality and volatility to determine if a stock is attractive.
PQSG and PQSV both charge expense ratios of 0.29% and list on the NYSE Arca.
Both funds are quantitatively managed, but managers can use their discretion when selecting equities for the portfolio. PQSG aims to outperform the Russell 2000 Growth Index, while PQSV looks to beat the performance of the Russell 2000 Value Index, according to the prospectus.
The new ETFs join the PGIM QMA Strategic Alpha Large-Cap Core ETF (PQLC), which launched in October, and currently has $12.3 million in assets under management. It relies on a similar process as the small-cap funds, but seeks to outperform the S&P 500 Index.
Contact Heather Bell at [email protected]