Prudential launches two actively managed US small-cap ETFs

Nov 20th, 2018 | By | Category: Equities

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Prudential Global Investment Management (PGIM) has launched two new actively managed ETFs on NYSE Arca, targeting US small-cap equities.

Prudential launches two actively managed US small cap ETFs

The funds seek to outperform the growth and value segments of the US small-cap equity market.

The PGIM QMA Strategic Alpha Small-Cap Growth ETF (PQSG US) and PGIM QMA Strategic Alpha Small-Cap Value ETF (PQSV US) seek to outperform the Russell 2000 growth and value style segments, respectively.

According to the funds’ prospectuses, the ETFs will employ a proprietary, multi-factor, quant-driven investment process that evaluates stocks based on value, quality, and low volatility characteristics.

While this process is rules-based, the managers will exercise their own judgement when selecting stock positions.

The funds come with expense ratios of 0.29%, not much higher than the 0.20% charged by the Vanguard Russell 2000 Value ETF (VTWV US) and Vanguard Russell 2000 Growth ETF (VTWG US) – the lowest cost ETFs in the US providing passive exposure to the Russell 2000 Value and Russell 2000 Growth indices.

PGIM debuted as an ETF provider with the launch of an actively managed ultra-short bond fund in April of this year. Just last month, the firm launched its first active equity ETF in the form of the PGIM QMA Strategic Alpha Large-Cap Core ETF (PQLC US). This fund seeks to outperform the S&P 500 by investing in US large-cap stocks with strong value, quality, and low volatility characteristics. It comes with an expense ratio of 0.17%.

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