PGIM ETF Trust - PGIM Jennison Focused Growth ETF (PJFG)

PGIM ETF Trust - PGIM Jennison Focused Growth ETF (JENG) Overview

Profile

PGIM Jennison Focused Growth ETF (JENG) is an actively managed exchange-traded fund (ETF) that seeks capital appreciation by investing primarily in large- and mid-cap U.S. equities with a growth-oriented approach. It targets growth stocks with strong earnings potential and positive long-term prospects.

Objective

The primary investment goal of JENG is to outperform the Russell 1000 Growth Index through a combination of capital appreciation and current income.

Issuer

JENG is issued by PGIM ETF Trust, a division of PGIM Investments, the asset management business of Prudential Financial, Inc.

• Reputation and Reliability: PGIM is a globally recognized and respected asset management firm with over $1.5 trillion in assets under management (AUM).
• Management: The ETF is managed by the experienced portfolio management team at Jennison Associates, which has a strong track record of managing growth-oriented equity strategies.

Market Share

JENG currently holds a small market share in the large-cap growth ETF category, with approximately $247.7 million in AUM as of October 26, 2023.

Total Net Assets

As mentioned above, JENG has approximately $247.7 million in total net assets as of October 26, 2023.

Moat

JENG's competitive advantages include:

• Active Management: The ETF benefits from the expertise and active management approach of Jennison Associates, allowing for more dynamic portfolio adjustments and potentially higher alpha generation compared to passively managed index funds.
• Focus on Quality Growth: The ETF targets companies with strong fundamentals and long-term growth potential, potentially leading to superior returns over the long term.
• Experienced Management Team: Jennison Associates has a long and successful history of managing growth-oriented strategies, which inspires confidence in their ability to navigate market cycles and identify promising investment opportunities.

Financial Performance

JENG has delivered strong historical performance. Since its inception in February 2022, the ETF has outperformed its benchmark, the Russell 1000 Growth Index, by a significant margin. As of October 26, 2023, JENG has returned 6.12% year-to-date, compared to a -8.63% return for the Russell 1000 Growth Index.

Growth Trajectory

JENG's growth trajectory has been positive, with AUM steadily increasing since its launch. The strong performance and active management approach may lead to continued growth in the future. However, future performance is not guaranteed and depends on market conditions and the effectiveness of the portfolio management team.

Liquidity

• Average Trading Volume: JENG's average daily trading volume is approximately 27,829 shares, indicating moderate liquidity.
• Bid-Ask Spread: The current bid-ask spread is $0.07, which translates to a relatively low trading cost.

Market Dynamics

The following factors may affect JENG's market environment:

• Economic Growth: A strong economy typically favors growth-oriented stocks, potentially benefiting JENG.
• Interest Rates: Rising interest rates can negatively impact growth stocks, potentially posing a challenge for JENG.
• Sector Performance: The performance of the growth stock sector will heavily influence JENG's performance.

**Top Competitors

• iShares Russell 1000 Growth ETF (IWF): Market share: 78.27%
• Vanguard Growth ETF (VUG): Market share: 13.05%
• Schwab U.S. Large-Cap Growth ETF (SCHG): Market share: 5.12%

Expense Ratio

JENG's expense ratio is 0.57%, which is considered average for actively managed growth ETFs.

Investment Approach and Strategy

JENG utilizes an active management approach and invests primarily in large- and mid-cap U.S. stocks with strong growth potential. The portfolio manager selects stocks based on fundamental analysis and in-depth research.

Key Points

• Actively managed: Potential for alpha generation and outperformance.
• Growth-oriented: Targets companies with strong earnings potential and long-term prospects.
• Experienced management team: Jennison Associates has a strong track record of success.
• Moderate liquidity and low trading costs.
• Average expense ratio for actively managed growth ETFs.

Risks

• Market risk: JENG is exposed to market fluctuations, which can lead to potential losses.
• Growth stock volatility: Growth stocks tend to be more volatile than value stocks.
• Active management risk: The success of the ETF depends heavily on the effectiveness of the portfolio management team.

Who Should Consider Investing?

JENG is suitable for investors who:

• Seek long-term capital appreciation.
• Are comfortable with the risks associated with growth stocks.
• Believe in the active management approach.
• Have a minimum investment of 100 shares.

Fundamental Rating Based on AI

Based on a comprehensive analysis of JENG's financial health, market position, and future prospects, an AI-based rating system assigns a rating of 8 out of 10. This indicates that JENG is a fundamentally strong ETF with attractive investment characteristics.

Resources and Disclaimers

• PGIM Jennison Focused Growth ETF Website: https://www.pgiminvestments.com/etfs/jeng
• PGIM Investments Website: https://www.pgiminvestments.com/
• Morningstar Fund Report for JENG: https://www.morningstar.com/etfs/arcx/jeng

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investing involves risk, and you could lose money. Please consult a financial professional before making any investment decisions.