PGIM has launched three new actively managed fixed income ETFs: the PGIM Corporate Bond 0–5 Year ETF (PCS), PGIM Corporate Bond 5–10 Year ETF (PCI) and PGIM Corporate Bond 10+ Year ETF (PCL).
The new ETFs each seek to provide total return through a combination of current income and capital appreciation with cost-effective access to investment-grade corporate bonds across the maturity spectrum:
- PGIM Corporate Bond 0–5 Year ETF (PCS) invests primarily in investment-grade corporate bonds with maturities of less than five years at a 0.20% net expense ratio.
- PGIM Corporate Bond 5–10 Year ETF (PCI) invests primarily in investment-grade corporate bonds with maturities between five and 10 years, offering intermediate-term exposure at a 0.25% net expense ratio.
- PGIM Corporate Bond 10+ Year ETF (PCL) invests primarily in long-duration investment-grade corporate bonds with maturities of 10 years or more at a 0.25% net expense ratio.
PCS, PCI and PCL are attractively priced, with net expense ratios ranking top quartile amongst active mutual funds and ETFs within their respective Morningstar categories.
“These ETFs are designed to meet the growing demand for investing in high-quality corporate fixed income securities,” said Stuart Parker, PGIM’s head of global wealth. “This launch reflects our commitment to bringing a diverse set of actively managed fixed income solutions to market for clients in additional wrappers.”
All three ETFs are actively managed and aim to maintain a weighted average portfolio duration within one year of their respective Bloomberg U.S. Corporate Bond Index benchmarks. The funds are listed on the Cboe BZX Exchange.
“These ETFs leverage PGIM’s deep expertise in credit research and active portfolio management to uncover value while seeking to deliver consistent, long-term returns for our clients,” said Rajat Shah, PGIM’s co-head of U.S. Investment Grade Corporate Bonds. “By offering targeted maturity exposure with active management, our solutions can help investors better align their bond allocations with risk and return objectives.”
The launch of PCS, PCI and PCL expands PGIM’s growing ETF platform, which now includes 13 fixed income ETFs and more than 50 equity, multi-asset and buffer ETFs. PGIM is the 11th-largest active ETF provider, with $17.1 billion in AUM across the ETF platform.
