Prudential Plans 4 Active Equity ETFs

July 16, 2018

A recent filing from Prudential’s PGIM unit outlines plans for four actively managed ETFs. The funds are slated to list on the NYSE Arca; the filing does not include tickers or expense ratios. Each ETF’s stated goal is achieving long-term growth of capital, according to the prospectus.

The PGIM QMA Strategic Alpha International Equity ETF will seek to outperform the MSCI EAFE Index, while the PGIM QMA Strategic Alpha Large-Cap Core ETF will look to beat the returns f the S&P 500 Index. The PGIM QMA Strategic Alpha Small-Cap Growth ETF and PGIM QMA Strategic Alpha Small-Cap Value ETF will seek to outperform the Russell 2000 Growth Index and Russell 2000 Value Index, respectively, the document says.

The prospectus further notes that Prudential’s Quantitative Management Associates (QMA) will serve as the subadvisor to all four ETFs. The firm uses a quantitatively driven multifactor approach that considers market signals around factors like value, quality and volatility to determine a stock’s attractiveness; however, the managers have the discretion to deviate from their models as needed.

The firm’s sole ETF currently trading is the PGIM Ultra Short Bond ETF (PULS), an actively managed short-term bond fund with $35 million in assets under management.

Contact Heather Bell at [email protected]

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