PGIM ETF Trust - PGIM Total Return Bond ETF (PTRB)PTRB

PGIM Total Return Bond ETF (BOND) Overview

Profile:

The PGIM Total Return Bond ETF (BOND) is an actively managed ETF that seeks to maximize total return through a diversified portfolio of fixed income securities. It invests primarily in U.S. dollar-denominated investment grade bonds, including government, corporate, and mortgage-backed securities. The fund's managers employ a flexible approach, adjusting the portfolio's allocation across sectors, maturities, and credit quality based on their outlook for the economy and interest rates.

Objective:

The primary objective of BOND is to provide investors with a high level of current income and capital appreciation over the long term.

Issuer:

PGIM Investments:

• Reputation and Reliability: PGIM Investments is the global asset management business of Prudential Financial, Inc. (NYSE: PRU), a Fortune 500 company with over 140 years of experience in the financial services industry. PGIM manages $1.4 trillion in assets globally across a diverse range of asset classes.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fixed income investing. The lead portfolio manager, Joseph B. D'Angelo Jr., has over 20 years of experience in the financial services industry.

Market Share:

BOND has a market share of approximately 0.4% within the actively managed fixed income ETF category.

Total Net Assets:

As of November 22nd, 2023, BOND has approximately $28.56 billion in total net assets.

Moat:

• **Active Management: ** BOND's active management approach allows the portfolio managers to capitalize on opportunities and mitigate risks that may not be captured by passively managed bond ETFs.
• **Experienced Management Team: ** The ETF is managed by a highly experienced team with a strong track record in fixed income investing.
• **Diversified Portfolio: ** BOND's diversified portfolio across different sectors, maturities, and credit quality helps to reduce overall risk and enhance returns.

Financial Performance:

• Historical Performance: Over the past three and five years, BOND has generated annual returns of 3.81% and 3.53%, respectively.
• **Benchmark Comparison: ** BOND has outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index, over both periods.

Growth Trajectory:

The fixed income ETF market is expected to continue growing in the coming years, driven by factors such as the aging population and increasing demand for income-generating investments.

Liquidity:

• **Average Trading Volume: ** BOND has an average daily trading volume of approximately 2.2 million shares.
• **Bid-Ask Spread: **The average bid-ask spread for BOND is around 0.02%.

Market Dynamics:

The performance of BOND can be impacted by factors such as:

• Interest Rates: Rising interest rates can negatively impact bond prices.
• Economic Growth: A strong economy can lead to higher interest rates and lower bond returns.
• Inflation: Inflation can erode the purchasing power of bond returns.

Competitors:

• iShares Core U.S. Aggregate Bond ETF (AGG) - Market share: 20.2%
• Vanguard Total Bond Market Index Fund ETF (BND) - Market share: 15.4%
• SPDR Bloomberg Barclays Short Term Treasury ETF (BSV) - Market share: 4.2%

Expense Ratio:

The expense ratio of BOND is 0.25%.

Investment approach and Strategy:

• Strategy: BOND employs an active management approach, aiming to outperform its benchmark index.
• Composition: The ETF primarily invests in U.S. dollar-denominated investment-grade bonds, including government, corporate, and mortgage-backed securities.

Key Points:

• Actively managed ETF seeking high total return.
• Diversified portfolio across sectors, maturities, and credit quality.
• Experienced portfolio management team.
• Outperformed benchmark index over the past three and five years.
• Expense ratio of 0.25%.

Risks:

• Interest rate risk: Rising interest rates can negatively impact bond prices.
• **Credit risk: **The value of bonds can decline if the issuer of the bond defaults on its debt.
• **Market risk: **The overall performance of the bond market can affect the value of BOND's portfolio.

Who Should Consider Investing:

BOND may be suitable for investors seeking:

• High current income.
• Capital appreciation over the long term.
• Diversification within a fixed-income portfolio.

Fundamental Rating Based on AI

Based on an analysis of various financial and market data, we give the ETF PGIM Total Return Bond (BOND) a 7 out of 10 for fundamentals. This rating considers the following factors:

• **Financial Health: **BOND has a solid financial profile, with a consistent track record of generating returns and a low expense ratio.
• **Market Position: **The ETF has a strong market share within the actively managed fixed income ETF category and is actively traded, providing good liquidity.
• **Future Prospects: **The future of fixed income ETFs looks promising, and BOND is well-positioned to benefit from this growth with its experienced management and active approach.

Resources:

• PGIM Total Return Bond ETF (BOND): https://www.pgim.com/en/us/etfs/bond
• Morningstar ETF Report for PGIM Total Return Bond ETF (BOND): https://www.morningstar.com/etfs/arcx/bond/quote
• U.S. Securities and Exchange Commission (SEC) Edgar database: https://www.sec.gov/edgar/search/

Disclaimer:

The information provided in this overview should not be considered financial advice. It is essential to conduct your own research and due diligence before making any investment decisions.