PGIM ETF Trust - PGIM Active Aggregate Bond ETF (PAB)

ETF PGIM ETF Trust - PGIM Active Aggregate Bond ETF (BOND)

Profile:

PGIM Active Aggregate Bond ETF (BOND) is an actively managed exchange-traded fund that seeks to achieve high current income while managing risk. It primarily invests in U.S. investment-grade fixed income securities, including government, agency, corporate and mortgage-backed securities.

Objective:

The fund's primary goal is to provide investors with a high level of current income while managing volatility and risk.

Issuer:

The ETF is issued and managed by PGIM Investments, LLC, the asset management arm of Prudential Financial. PGIM Investments is a leading global asset manager with over $1.4 trillion in assets under management.

Reputation and Reliability: PGIM is a well-respected and reputable asset manager with a long track record of success.

Management: The fund is managed by a team of experienced portfolio managers with deep expertise in fixed income markets.

Market Share:

BOND is a relatively small ETF in its sector, with approximately 0.1% market share.

Total Net Assets:

As of November 7th, 2023, BOND has total net assets of approximately $2.32 billion.

Moat:

BOND's competitive advantages include its:

• Actively managed approach: Allows the portfolio managers to adjust the fund's holdings to take advantage of market opportunities and mitigate risk.
• Experienced management team: The portfolio managers have a strong track record of managing fixed income portfolios.
• Focus on income: The fund is primarily focused on generating current income, which may be attractive to income-oriented investors.

Financial Performance:

• Historical performance: Over the past 5 years, BOND has generated an annualized return of 3.16%.
• Benchmark Comparison: The fund has outperformed its benchmark, the Bloomberg Aggregate Bond Index, over the past 1 and 5 years.

Growth Trajectory:

The fixed income ETF market is expected to continue to grow in the coming years, due to increasing demand for income and diversification from investors.

Liquidity:

• Average Trading Volume: BOND's average trading volume is approximately 200,000 shares per day.
• Bid-Ask Spread: The fund has a relatively tight bid-ask spread of approximately 0.02%.

Market Dynamics:

Factors affecting BOND's market environment include interest rates, economic growth, inflation, and credit risk.

Competitors:

BOND's key competitors are other actively managed aggregate bond ETFs, such as iShares Core US Aggregate Bond ETF (AGG) and Vanguard Total Bond Market ETF (BND).

Expense Ratio:

BOND's expense ratio is 0.28%.

Investment Approach and Strategy:

• Strategy: Actively managed, aiming for high current income and mitigating risk.
• Composition: Primarily invests in U.S. investment-grade fixed income securities.

Key Points:

• Actively managed approach with experienced management team.
• Focus on generating high income.
• Outperformed benchmark in recent years.
• Relatively low expense ratio.

Risks:

• Interest rate risk: Rising interest rates can negatively affect the value of bonds.
• Credit risk: The possibility that the issuer of a bond could default on its obligations.
• Inflation risk: Inflation can erode the purchasing power of fixed income payments.
• Volatility risk: The fixed income market can experience periods of volatility, which can lead to short-term losses.

Who should consider investing?

BOND may be suitable for investors seeking:

• High current income.
• Reduced volatility compared to other fixed income investments.
• Exposure to a broad range of U.S. investment grade fixed income securities.

Fundamental Rating Based on AI: 7.8

BOND receives an AI-based fundamental rating of 7.8. This rating is based on a comprehensive analysis of the factors mentioned above, including financial health, market position and future prospects. The analysis considered the fund's strong management team, competitive fees, performance track record, and moderate risk profile.

Resources:

PGIM Investments website: www.pgiminvestments.com BOND ETF Fact sheet: www.pgiminvestments.com/etf/bond-fund Bloomberg Terminal

Disclaimers:

The information provided above should not be considered financial advice. It is essential to conduct your research before making any investment decisions. Past performance is not indicative of future results. Investment returns and principal value may fluctuate.