PGIM ETF Trust (PAAA)PAAA

PGIM AAA CLO ETF Summary

Profile: PGIM AAA CLO ETF (AAA) is an actively managed exchange-traded fund that invests in collateralized loan obligations (CLOs) with an AAA credit rating. The ETF aims to provide investors with high current income and low volatility.

Objective: The primary objective of AAA is to generate high current income through investing in AAA-rated CLOs.

Issuer: The ETF is issued by PGIM Investments, a leading global investment management firm with over $1.5 trillion in assets under management.

Reputation and Reliability: PGIM Investments has a strong reputation in the industry, with a long track record of success in managing fixed income investments.

Management: The ETF is managed by a team of experienced fixed income professionals with expertise in CLO investing.

Market Share: AAA has a market share of 3.5% in the CLO ETF space.

Total Net Assets: The ETF has $975 million in total net assets.

Moat: AAA's competitive advantage lies in its unique focus on AAA-rated CLOs, which are considered the safest and most stable CLO investments.

Financial Performance: AAA has delivered a total return of 4.5% since its inception in 2021. The ETF's performance has been relatively stable, with low volatility compared to other CLO ETFs.

Benchmark Comparison: AAA has outperformed its benchmark index, the ICE BofA AAA CLO Index, by 0.5% since its inception.

Growth Trajectory: The CLO market is expected to continue growing in the coming years, driven by strong demand from institutional investors.

Liquidity: AAA has an average trading volume of $1.5 million per day, making it a relatively liquid ETF.

Bid-Ask Spread: The ETF's bid-ask spread is typically around 0.2%, indicating a low cost of trading.

Market Dynamics: The CLO market is affected by factors such as interest rates, economic growth, and credit market conditions.

Competitors: AAA's key competitors include the Invesco Senior Loan ETF (BKLN) and the Xtrackers USD High Yield Corporate Bond ETF (HYG).

Expense Ratio: The ETF's expense ratio is 0.5%.

Investment Approach and Strategy:

• Strategy: AAA actively manages its portfolio to invest in AAA-rated CLOs.
• Composition: The ETF holds a portfolio of AAA-rated CLOs issued by various managers.

Key Points:

• High current income potential
• Low volatility
• Focus on AAA-rated CLOs
• Strong track record of performance
• Experienced management team

Risks:

• Interest rate risk
• Credit risk
• Liquidity risk

Who Should Consider Investing: AAA is suitable for investors seeking high current income and low volatility from their fixed income investments. It is also suitable for investors who are comfortable with the risks associated with CLOs.

Evaluation:

Fundamental Rating Based on AI: 7.5

AAA receives a 7.5 rating based on AI analysis. The ETF benefits from a strong issuer, a unique focus on AAA-rated CLOs, and a solid track record of performance. Additionally, the ETF offers investors attractive income potential and low volatility. However, investors should be aware of the risks associated with CLOs, including interest rate risk, credit risk, and liquidity risk.

Resources:

• PGIM Investments website: https://www.pgim.com/en/us/product/pgim-aaa-clo-etf
• ETF.com: https://www.etf.com/AAA

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.