Prudential launches international multi-factor ETF

Oct 20th, 2018 | By | Category: ETF and Index News

Prudential Global Investment Management (PGIM) has launched the PGIM QMA Strategic Alpha International Equity ETF (PQIN US) on NYSE Arca, providing actively managed exposure to stocks from developed markets, excluding the US, that have been selected using a multi-factor process.

Prudential launches actively managed international multi-factor ETF

PQIN invests in an actively managed portfolio of international developed market stocks that have strong value, quality, and low volatility characteristics.

Sub-advised by QMA, the quantitative equity and global multi-asset solutions manager of PGIM, the fund primarily seeks long-term growth of capital and aims to outperform the benchmark MSCI EAFE Index.

According to PQIN’s prospectus, the ETF selects its holdings based on a proprietary bottom-up analysis of a stocks value, quality, and volatility factors. The fund seeks to avoid high premium stocks likely to underperform as well as stocks with other undesirable characteristics. This analysis is conducted on an ongoing daily basis.

Stocks making it into the portfolio are held at approximately equal weights, and rebalancing is opportunistic, based on market conditions. Dividends from the fund are paid quarterly to investors.

PQIN comes with an expense ratio of 0.29%.

PQIN marks the firm’s fourth outing in the active equity ETF space. Its other funds include the PGIM QMA Strategic Alpha Large-Cap Core ETF (PQLC US), which provides actively managed exposure to US large-cap stocks with strong value characteristics; and the PGIM QMA Strategic Alpha Small-Cap Growth ETF (PQSG US) and PGIM QMA Strategic Alpha Small-Cap Value ETF (PQSV US), which seek growth and value opportunities, respectively, within the US small-cap equity universe.

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