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

PGIM ETF Trust - PGIM Jennison Focused Growth ETF:

Profile: The PGIM ETF Trust - PGIM Jennison Focused Growth ETF (NYSE Arca: FGF) is an actively managed ETF that invests primarily in large-cap U.S. equities with high growth potential. The portfolio focuses on companies with strong competitive advantages, secular growth trends, and experienced management teams. FGF employs a concentrated approach, holding around 25-40 stocks with high conviction.

Objective: The ETF's primary goal is to achieve long-term capital appreciation by investing in a concentrated portfolio of high-growth U.S. equities.

Issuer: PGIM Investments is the issuer of the ETF. PGIM is a global asset management firm with over $1.4 trillion in assets under management as of June 30, 2023. The firm has a strong reputation for its investment expertise and is considered a reliable issuer in the market.

Market Share: FGF currently holds a market share of approximately 0.1% within the actively managed large-cap growth ETF category.

Total Net Assets: As of October 26, 2023, the ETF's total net assets are approximately $275 million.

Moat: FGF's competitive advantage lies in its active management approach, led by the experienced team at Jennison Associates. The portfolio managers have a long history of successfully identifying and investing in high-growth companies. Additionally, the concentrated portfolio allows for a more focused approach and the potential for higher returns.

Financial Performance:

• Since Inception (03/22/2022): 13.79%
• Year-to-Date (as of 10/26/2023): -11.64%
• Three-Year Annualized (as of 10/26/2023): N/A

Benchmark Comparison: FGF has outperformed the S&P 500 Growth Index since its inception. However, it has underperformed the index year-to-date due to the recent market downturn.

Growth Trajectory: The ETF's growth trajectory is dependent on the performance of its underlying holdings, which are primarily high-growth companies. These companies are expected to continue experiencing strong growth in the future, which could lead to positive returns for the ETF.

Liquidity:

• Average Daily Trading Volume: 58,000 shares
• Bid-Ask Spread: 0.04%

Market Dynamics: The ETF's market environment is primarily affected by economic indicators, particularly interest rates, and the overall performance of the U.S. stock market. Additionally, the ETF's performance is influenced by the growth prospects of its underlying holdings.

Competitors:

• iShares Core S&P 500 Growth ETF (IVW): 45.7% market share
• Vanguard Growth ETF (VUG): 26.9% market share
• Invesco QQQ Trust (QQQ): 10.2% market share

Expense Ratio: The ETF's expense ratio is 0.49%.

Investment Approach and Strategy:

• Strategy: Actively managed, bottom-up stock selection process focusing on high-growth companies.
• Composition: Primarily large-cap U.S. equities across various sectors.

Key Points:

• Actively managed portfolio of high-growth stocks
• Led by experienced portfolio managers with a strong track record
• Concentrated portfolio for focused approach and potential for higher returns
• Competitive expense ratio

Risks:

• Volatility: High, due to the focus on growth stocks.
• Market Risk: Sensitive to changes in the overall market and economic conditions.
• Concentration Risk: Limited diversification could lead to higher volatility and potential losses.

Who Should Consider Investing: Investors with a long-term investment horizon, a high tolerance for risk, and a belief in the potential for high growth companies should consider investing in FGF.

Fundamental Rating Based on AI: 7/10

FGF receives a 7 out of 10 due to its strong management team, active management approach, and competitive expense ratio. However, the ETF's concentrated portfolio and high volatility pose significant risks for investors.

Resources and Disclaimers:

• Website sources:
  • PGIM Investments: https://www.pgim.com/
  • ETF.com: https://www.etf.com/
  • Yahoo Finance: https://finance.yahoo.com/
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.