ETFdb on PGIM Ultra-Short Bond
The website ETFdb.com writes "PGIM Ultra Short Bond ETF Moves Into $1 Billion Club." The article explains, "Today's low-yield environment is increasing the allure of high-yielding fixed-income assets, but plenty of investors still like the safety and added income of short-term bond funds. Just look at the PGIM Ultra Short Bond ETF (PULS). The actively managed PULS meets the increased demand for ultra-short-duration debt exposure to allow fixed-income investors gather decent yields with minimal risk. PULS's risk-managed and short duration approach is designed to provide investors a hedge against rising rates and enhance or diversify a cash management strategy. Confirming that advisors and investors are still embracing short-term bond ETFs, PULS has seen nearly $208 million in 2020 inflows, pushing the fund into the exclusive $1 billion in assets under management club." PGIM comments, "The investment objective of PGIM Ultra Short Bond ETF is to seek total return through a combination of current income and capital appreciation, consistent with preservation of capital." The EFTdb piece adds, "PULS, which turns two years old in April, has a duration of just 0.2 years, according to issuer data.... The fund is actively managed and competitively priced at 15 basis points, or 12 basis points lower than the average active ETF in its category.... PULS can include corporate securities, asset-backed securities, mortgage-backed and mortgage-related securities, and high-quality money market instruments such as commercial paper and certificates of deposit. In fact, 56.2% of the fund is currently allocated to fixed and floating corporate bonds."
