PGIM Unveils Pair of Active Muni Bond ETFs

“In addition to their diversification benefits, muni bond ETFs offer an attractive opportunity for investors, particularly high-net-worth investors, who may be looking to maximize tax efficiency within their portfolios,” noted PGM Investments President and CEO Stuart Parker. “We are thrilled to further expand PGIM Fixed Income’s actively managed muni bond offerings in the retail market.”

According to PGIM, PUSH is the lowest-cost active ETF in the Morningstar Short Muni category, with a low net expense ratio of 0.15%. The fund primarily allocates assets to investment-grade munis, with a smaller investment space offered to high yield munis.

As an ultra-short fund, PUSH aims to keep a weighted average portfolio duration of two years or less. A shorter portfolio duration can help the fund mitigate potential risk from interest rates.

PMIO aims to provide investors with a combination of capital appreciation and current income, leading to potential total return. The fund has a net expense ratio of 0.25%.

This fund uses a more flexible portfolio, allocating roughly 70% into investment-grade munis and about 30% into high yield munis. PMIO aims to keep its average weighted portfolio duration sitting between two to eight years. The fund’s versatile portfolio allows it to capture securities across a variety of credit qualities, sectors, and maturities.

Both funds feature active management teams, aiding the fund in seeking quality investments to bring in returns and income. Active management can also help bond investors manage risk of default within high yield investments.

PGIM currently has over 40 ETFs listed in the United States. These funds represent over $8.2 billion in assets under management.

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