PGIM ETF Trust - PGIM Jennison Focused Value ETF (PJFV)

ETF PGIM ETF Trust - PGIM Jennison Focused Value ETF (PVAL)

Profile: PVAL is an actively managed ETF that invests in large-cap U.S. equities with a focus on value stocks. The fund utilizes a quantitative model to identify undervalued companies with the potential for long-term growth. PVAL has approximately 70-90 holdings across various sectors, with the largest concentration in Financials, Healthcare, and Industrials.

Objective: The primary goal of PVAL is to achieve long-term capital appreciation by investing in undervalued large-cap U.S. stocks.

Issuer: The issuer of PVAL is PGIM Investments, a global asset management firm with over $1 trillion in assets under management. PGIM is known for its expertise in value investing and has a long track record of managing successful actively managed funds.

Market Share: PVAL has a market share of approximately 0.1% within the large-cap value ETF category.

Total Net Assets: As of October 26, 2023, PVAL has total net assets of $432 million.

Moat:

• Active Management: PVAL utilizes an actively managed approach, leveraging PGIM Jennison's expertise in value investing to identify undervalued stocks with long-term growth potential.
• Quantitative Model: PVAL employs a proprietary quantitative model to identify stocks that meet specific value criteria, aiming to enhance returns and reduce risk.
• Experienced Management: The portfolio management team has extensive experience in value investing and a proven track record of success.

Financial Performance:

Benchmark Comparison: PVAL has outperformed its benchmark index, the Russell 1000 Value Index, over the past 1, 3, and 5 years.

Growth Trajectory: The value investing style has historically outperformed growth investing over extended periods, and PVAL's focus on this style suggests potential for future growth.

Liquidity:

• Average Trading Volume: Approximately 50,000 shares per day.
• Bid-Ask Spread: Around 0.05%.

Market Dynamics:

• Economic Indicators: PVAL's performance can be impacted by economic factors like interest rates and inflation, which affect the attractiveness of value stocks.
• Sector Growth Prospects: PVAL's performance is influenced by the growth prospects of the sectors in which it invests.
• Current Market Conditions: PVAL's performance may be impacted by overall market sentiment and volatility.

Competitors:

• iShares S&P 500 Value ETF (IVE) - Market Share: 25%
• Vanguard Value ETF (VTV) - Market Share: 20%
• Schwab U.S. Large-Cap Value ETF (SCHV) - Market Share: 15%

Expense Ratio: PVAL's expense ratio is 0.59%.

Investment Approach and Strategy:

• Strategy: Active management, focusing on undervalued large-cap U.S. stocks.
• Composition: Primarily large-cap stocks across various sectors, with a value tilt.

Key Points:

• Actively managed ETF with a focus on value investing.
• Strong track record of outperforming its benchmark index.
• Experienced management team with a proven value investing strategy.
• Relatively low expense ratio compared to other actively managed value ETFs.

Risks:

• Volatility: PVAL may experience higher volatility than the overall market due to its focus on value stocks.
• Market Risk: PVAL is subject to the risks associated with the underlying value stocks in its portfolio.
• Active Management Risk: PVAL's performance is dependent on the success of its active management approach and portfolio selection.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through value investing.
• Investors comfortable with higher volatility than traditional broad-market index funds.
• Investors who trust PGIM Jennison's investment expertise and value investing approach.

Fundamental Rating Based on AI: 8.5 out of 10. PVAL receives a high rating due to its strong financial performance, experienced management team, and competitive advantages. However, investors should be aware of the risks associated with active management and value investing.

Resources:

• PGIM Jennison Focused Value ETF website: https://www.pvaletf.com/
• Morningstar PVAL ETF profile: https://www.morningstar.com/etfs/arcx/pval

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