UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: | 811-23324 | |
Exact name of registrant as specified in charter: | PGIM ETF Trust |
(This FormN-CSR relates solely to the Registrant’s: PGIM Ultra Short Bond ETF, PGIM Active High Yield Bond ETF, PGIM QMA Strategic Alpha International Equity ETF, PGIM QMA Strategic AlphaLarge-Cap Core ETF, PGIM QMA Strategic AlphaSmall-Cap Growth ETF and PGIM QMA Strategic AlphaSmall-Cap Value ETF)
Address of principal executive offices: | 655 Broad Street, 17th Floor | |
Newark, New Jersey 07102 | ||
Name and address of agent for service: | Andrew R. French | |
655 Broad Street, 17th Floor | ||
Newark, New Jersey 07102 | ||
Registrant’s telephone number, including area code: | 800-225-1852 | |
Date of fiscal year end: | 8/31/2019 | |
Date of reporting period: | 2/28/2019 |
Item 1 – Reports to Stockholders
PGIM ULTRA SHORT BOND ETF (NYSE Arca: PULS)
SEMIANNUAL REPORT
FEBRUARY 28, 2019
COMING SOON: PAPERLESS SHAREHOLDER REPORTS
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (pgiminvestments.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank).
You may elect to receive all future reports in paper free of charge. You should contact your financial intermediary or follow instructions included with this notice to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account.
To enroll in e-delivery, go to pgiminvestments.com/edelivery
Objective: Total return through a combination of current income and capital appreciation, consistent with preservation of capital |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of February 28, 2019 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Exchange-traded funds are distributed by Prudential Investment Management Services LLC (PIMS), member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies.© 2019 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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PGIM Ultra Short Bond ETF | 3 |
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Dear Shareholder:
We hope you find the semiannual report for PGIM Ultra Short Bond ETF informative and useful. The report covers performance for the six-month period ended February 28, 2019.
Regarding your investments with PGIM, we believe it is important to
maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Ultra Short Bond ETF
April 15, 2019
PGIM Ultra Short Bond ETF | 5 |
Your Fund’s Performance(unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when sold and redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website atpgiminvestments.com or by calling(800) 225-1852.
Total Returns as of 2/28/19 | ||||
Six Months (%) | Since Inception (%) | |||
Net Asset Value (NAV) | 1.26 | 2.36 (4/5/18) | ||
Market Price* | 1.22 | 2.34 (4/5/18) | ||
ICE BofAML 3-Month T Bill Index | ||||
1.10 | 1.90 | |||
ICE BofAML USD 3-Month Deposit Offered Rate CM Index | ||||
1.24 | 2.26 | |||
Lipper Ultra-Short Obligations Funds Average | ||||
1.12 | 2.05 |
Source: PGIM Investments LLC and Lipper Inc.
*The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated. The first day of secondary market trading is typically several days after the date on which the Fund commenced investment operations; therefore, the NAV of the Fund is used as a proxy for the period from inception of investment operations to the first day of secondary market trading to calculate the market price returns.
Since inception returns for the Indexes and the Lipper Average are measured from the closest month-end to the Fund’s inception date.
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the sale or redemption of Fund shares.
Market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions, if any, have been reinvested in the Fund at market price and NAV, respectively.
Benchmark Definitions
ICE BofAML 3-Month T Bill Index—The ICE BofA Merrill Lynch 3-Month US Treasury Bill Index tracks the performance of US dollar-denominated US Treasury Bills publicly issued in the US domestic market with a remaining term to final maturity of 3 months.
ICE BofAML USD 3-Month Deposit Offered Rate CM Index—The ICE BofA Merrill Lynch US Dollar3-Month Deposit Offered Rate Constant Maturity Index is an unmanaged index that tracks the performance of a synthetic asset paying LIBOR to a stated maturity. The Index is based on the assumed purchase at par of a synthetic instrument having exactly its stated maturity and with a coupon equal to that current day fixing rate. That issue is assumed to be sold the following business day (priced at a yield equal to the current day fixing rate) and rolled into a new instrument.
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ICE BOFA MERRILL LYNCH IS LICENSING THE BOFA MERRILL LYNCH INDICES “AS IS,” MAKES NO WARRANTIES REGARDING THE SAME, DOES NOT GUARANTEE THE SUITABILITY, QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE ICE BOFA MERRILL LYNCH INDICES OR ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM, ASSUMES NO LIABILITY IN CONNECTION WITH THEIR USE, AND DOES NOT SPONSOR, ENDORSE, OR RECOMMEND THE FUND, OR ANY OF ITS PRODUCTS OR SERVICES.
Lipper Ultra-Short Obligations Funds Average—The Lipper Ultra-Short Obligation Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Ultra-Short Obligation Funds universe for the periods noted. Funds in the Lipper Average are funds that invest primarily in investment-grade debt issues or better and maintain a portfolio dollar weighted average maturity between 91 days and 365 days.
Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses of a mutual fund, but not sales charges or taxes.
Credit Quality expressed as a percentage of total investments as of 2/28/19 (%) | ||||
AAA | 20.2 | |||
AA | 26.8 | |||
A | 28.5 | |||
BBB | 26.3 | |||
Not Rated | –0.1 | |||
Cash and Cash Equivalents | –1.7 | |||
Total Investments | 100.0 |
Source: PGIM Fixed Income
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by a NRSRO and may include derivative instruments that could have a negative value. Credit ratings are subject to change. Values may not sum to 100% due to rounding.
Negative weightings may result from specific circumstances (including timing differences between trade and settle dates of securities purchased by the funds) and/or the use of certain financial instruments, including derivatives, which may be used to gain or reduce market exposure and/or risk management.
PGIM Ultra Short Bond ETF | 7 |
Your Fund’s Performance(continued)
Distributions and Yields as of 2/28/19 | ||||||
Total Dividends Paid for Six Months ($) | SEC 30-Day Subsidized Yield* (%) | SEC 30-Day Unsubsidized Yield** (%) | ||||
0.65 | 2.88 | 2.88 |
*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s net expenses (net of any expense waivers or reimbursements). The investor experience is represented by the SEC 30-Day Subsidized Yield.
**SEC 30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s gross expenses. The investor experience is represented by the SEC 30-Day Subsidized Yield.
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As a shareholder of the Fund, you incur ongoing costs, including investment management fees. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The example is based on an investment of $1,000 held through the period ended February 28, 2019. The example is for illustrative purposes only.
Actual Expenses
The information under each column in the line entitled “Actual” on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information under each column in the line entitled “Hypothetical” on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, brokerage commissions paid on purchases and sales of Fund shares. Therefore, the ending account values and expenses paid for the period are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Ultra Short Bond ETF | 9 |
Fees and Expenses(continued)
PGIM Ultra Short Bond ETF | Beginning Account Value September 1, 2018 | Ending Account Value February 28, 2019 | Annualized Expense Ratio based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Actual | $ | 1,000.00 | $ | 1,012.60 | 0.15 | % | $ | 0.75 | ||||||||||
Hypothetical | $ | 1,000.00 | $ | 1,024.05 | 0.15 | % | $ | 0.75 |
*Fund expenses (net of fee waivers or subsidies, if any) are equal to the annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended February 28, 2019, and divided by the 365 days in the Fund’s fiscal year ending August 31, 2019 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
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Schedule of Investments(unaudited)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
LONG-TERM INVESTMENTS 67.6% | ||||||||||||||||
ASSET-BACKED SECURITIES 9.8% | ||||||||||||||||
Collateralized Loan Obligations 9.8% |
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Adams Mill CLO Ltd. (Cayman Islands), Series2014-1A, Class A1R, 144A, 3 Month LIBOR + 1.100% | 3.887 | %(c) | 07/15/26 | 867 | $ | 865,111 | ||||||||||
Anchorage Capital CLO 8 Ltd. (Cayman Islands),Series 2016-8A, Class AR, 144A, 3 Month LIBOR + 1.000% | 3.765 | (c) | 07/28/28 | 295 | 292,916 | |||||||||||
Atrium VIII (Cayman Islands), Series 8A, Class AR, 144A, 3 Month LIBOR + 1.350% | 4.122 | (c) | 10/23/24 | 511 | 511,456 | |||||||||||
Avery Point III CLO Ltd. (Cayman Islands),Series 2013-3A, Class AR, 144A, 3 Month LIBOR + 1.120% | 3.900 | (c) | 01/18/25 | 621 | 621,506 | |||||||||||
Battalion CLO VII Ltd. (Cayman Islands),Series 2014-7A, Class A1RR, 144A, 3 Month LIBOR + 1.040% | 3.813 | (c) | 07/17/28 | 1,000 | 991,263 | |||||||||||
Catamaran CLO Ltd. (Cayman Islands), Series2014-2A, Class A1R, 144A, 3 Month LIBOR + 1.400% | 4.180 | (c) | 10/18/26 | 812 | 812,221 | |||||||||||
CIFC Funding Ltd. (Cayman Islands), Series 2015-2A, Class AR, 144A, 3 Month LIBOR + 0.780% | 3.567 | (c) | 04/15/27 | 575 | 571,565 | |||||||||||
Ellington CLO IV Ltd. (Cayman Islands), Series2019-1A, Class A, 144A, | 0.000 | (o) | 04/15/29 | 1,900 | 1,900,000 | |||||||||||
Flagship CLO VIII Ltd. (Cayman Islands),Series 2014-8A, Class ARR, 144A, 3 Month LIBOR + 0.850% | 3.629 | (c) | 01/16/26 | 800 | 796,159 | |||||||||||
Flagship VII Ltd. (Cayman Islands), Series 2013-7A, Class A1R, 144A, 3 Month LIBOR + 1.120% | 3.881 | (c) | 01/20/26 | 344 | 344,169 | |||||||||||
Flatiron CLO Ltd. (Cayman Islands), Series 2015-1A, Class AR, 144A, 3 Month LIBOR + 0.890% | 3.677 | (c) | 04/15/27 | 650 | 646,474 | |||||||||||
ICG US CLO Ltd. (Cayman Islands), Series 2015-1A, Class A1R, 144A, 3 Month LIBOR + 1.140% | 3.901 | (c) | 10/19/28 | 1,000 | 995,749 | |||||||||||
KVK CLO Ltd. (Cayman Islands), Series2018-1A, Class A, 144A, 3 Month LIBOR + 0.930% | 3.574 | (c) | 05/20/29 | 500 | 495,596 | |||||||||||
Limerock CLO III LLC (Cayman Islands), Series2014-3A, Class A1R, 144A, 3 Month LIBOR + 1.200% | 3.961 | (c) | 10/20/26 | 245 | 245,209 | |||||||||||
Magnetite XI Ltd. (Cayman Islands), Series 2014-11A, Class A1R, 144A, 3 Month LIBOR + 1.120% | 3.900 | (c) | 01/18/27 | 300 | 299,998 | |||||||||||
Man GLG US CLO Ltd. (Cayman Islands),Series 2018-2A, Class A1R, 144A, 3 Month LIBOR + 1.240% | 4.027 | (c) | 10/15/28 | 1,250 | 1,245,983 | |||||||||||
Mill Creek II CLO Ltd. (Cayman Islands), Series2016-1A, Class A, 144A, 3 Month LIBOR + 1.750% | 4.511 | (c) | 04/20/28 | 250 | 250,081 | |||||||||||
Mountain View CLO Ltd (Cayman Islands),Series 2013-1A, Class AR, 144A, 3 Month LIBOR + 1.250% | 4.047 | (c) | 10/12/30 | 500 | 496,840 | |||||||||||
Ocean Trails CLO IV (Cayman Islands), Series2013-4A, Class AR, 144A, 3 Month LIBOR + 0.900% | 3.588 | (c) | 08/13/25 | 790 | 788,639 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 11 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
ASSET-BACKED SECURITIES (Continued) | ||||||||||||||||
Collateralized Loan Obligations (cont’d.) |
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OZLM XII Ltd. (Cayman Islands), Series2015-12A, Class A1R, 144A, 3 Month LIBOR + 1.050% | 3.801 | %(c) | 04/30/27 | 300 | $ | 299,245 | ||||||||||
OZLM XIII Ltd. (Cayman Islands), Series 2015-13A, Class A1R, 144A, 3 Month LIBOR + 1.080% | 3.831 | (c) | 07/30/27 | 1,100 | 1,097,714 | |||||||||||
Saratoga Investment Corp. CLO Ltd. (Cayman Islands), Series2013-1A, Class AFR2, 144A, 3 Month LIBOR + 1.250% | 4.190 | (c) | 01/20/30 | 1,000 | 996,950 | |||||||||||
Sound Point CLO XI Ltd. (Cayman Islands),Series 2016-1A, Class AR, 144A, 3 Month LIBOR + 1.100% | 3.861 | (c) | 07/20/28 | 500 | 499,089 | |||||||||||
TCW CLO AMR Ltd. (Cayman Islands), Series2019-1A, Class A, 144A, 1.440% - 1 Month LIBOR | 0.000 | (o) | 02/15/29 | 1,500 | 1,500,000 | |||||||||||
THL Credit Wind River CLO Ltd. (Cayman Islands),Series 2012-1A, Class AR, 144A, 3 Month LIBOR + 1.450% | 4.237 | (c) | 01/15/26 | 800 | 800,367 | |||||||||||
TICP CLO I Ltd. (Cayman Islands), Series2015-1A, Class AR, 144A, 3 Month LIBOR + 0.800% | 3.561 | (c) | 07/20/27 | 500 | 494,837 | |||||||||||
TICP CLOIII-2 Ltd. (Cayman Islands), Series 2018-3R, Class A, 144A, 3 Month LIBOR + 0.840% | 3.601 | (c) | 04/20/28 | 1,510 | 1,494,949 | |||||||||||
Venture XXIV CLO Ltd. (Cayman Islands),Series 2016-24A, Class A1D, 144A, 3 Month LIBOR + 1.420% | 4.181 | (c) | 10/20/28 | 250 | 250,207 | |||||||||||
Wellfleet CLO Ltd. (Cayman Islands), Series 2016-2A, Class A1R, 144A, 3 Month LIBOR + 1.140% | 3.901 | (c) | 10/20/28 | 1,000 | 993,520 | |||||||||||
West CLO Ltd. (Cayman Islands), Series2014-1A, Class A1R, 144A, 3 Month LIBOR + 0.920% | 3.700 | (c) | 07/18/26 | 206 | 204,708 | |||||||||||
Zais CLO 8 Ltd. (Cayman Islands), Series2018-1A, Class A, 144A, 3 Month LIBOR + 0.950% | 3.737 | (c) | 04/15/29 | 900 | 889,624 | |||||||||||
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TOTAL ASSET-BACKED SECURITIES | 22,692,145 | |||||||||||||||
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COMMERCIAL MORTGAGE-BACKED SECURITIES 9.7% |
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BANK, | ||||||||||||||||
Series 2017-BNK5, Class A1 | 1.909 | 06/15/60 | 266 | 261,839 | ||||||||||||
Series 2017-BNK7, Class A1 | 1.984 | 09/15/60 | 174 | 171,062 | ||||||||||||
Series 2018-BN14, Class A1 | 3.277 | 09/15/60 | 765 | 770,623 | ||||||||||||
BBCMS Mortgage Trust, Series2017-C1, Class A1 | 2.010 | 02/15/50 | 428 | 421,535 | ||||||||||||
CD Mortgage Trust, | ||||||||||||||||
Series2016-CD1, Class A1 | 1.443 | 08/10/49 | 28 | 27,775 | ||||||||||||
Series2017-CD3, Class A1 | 1.965 | 02/10/50 | 123 | 121,311 | ||||||||||||
CFCRE Commercial Mortgage Trust, Series 2016-C4, Class A1 | 1.501 | 05/10/58 | 950 | 938,306 |
See Notes to Financial Statements.
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Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) |
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Citigroup Commercial Mortgage Trust, | ||||||||||||||||
Series 2014-GC21, Class AAB | 3.477 | % | 05/10/47 | 540 | $ | 547,138 | ||||||||||
Series 2015-GC35, Class A1 | 1.847 | 11/10/48 | 283 | 281,312 | ||||||||||||
Series2015-P1, Class A1 | 1.648 | 09/15/48 | 304 | 301,744 | ||||||||||||
Series2016-C1, Class A1 | 1.506 | 05/10/49 | 460 | 453,519 | ||||||||||||
Series 2016-GC37, Class A1 | 1.635 | 04/10/49 | 60 | 59,021 | ||||||||||||
Series2016-P5, Class A1 | 1.410 | 10/10/49 | 87 | 85,964 | ||||||||||||
Series2017-P8, Class A1 | 2.065 | 09/15/50 | 344 | 338,315 | ||||||||||||
COMM Mortgage Trust, | ||||||||||||||||
Series 2014-CR19, Class A1 | 1.415 | 08/10/47 | 57 | 57,253 | ||||||||||||
Series 2014-CR20, Class A1 | 1.324 | 11/10/47 | 87 | 86,240 | ||||||||||||
Series 2015-CR22, Class A1 | 1.569 | 03/10/48 | 10 | 9,720 | ||||||||||||
Series 2015-CR24, Class A2 | 3.022 | 08/10/48 | 156 | 155,986 | ||||||||||||
Series 2015-CR24, Class A3 | 3.214 | 08/10/48 | 960 | 960,457 | ||||||||||||
Series 2015-CR25, Class A1 | 1.737 | 08/10/48 | 196 | 194,486 | ||||||||||||
Series 2015-LC19, Class A1 | 1.399 | 02/10/48 | 99 | 98,914 | ||||||||||||
Series2016-DC2, Class A1 | 1.820 | 02/10/49 | 468 | 462,248 | ||||||||||||
Series 2017-COR2, Class A1 | 2.111 | 09/10/50 | 212 | 209,081 | ||||||||||||
Commercial Mortgage Pass Through Certificates, Series 2016-CR28, Class A1 | 1.770 | 02/10/49 | 380 | 376,485 | ||||||||||||
CSAIL Commercial Mortgage Trust, Series 2015-C3, Class A1 | 1.717 | 08/15/48 | 274 | 272,218 | ||||||||||||
DBJPM Mortgage Trust, | ||||||||||||||||
Series2016-C3, Class A1 | 1.502 | 08/10/49 | 678 | 666,148 | ||||||||||||
Series2016-C3, Class A2 | 1.886 | 08/10/49 | 1,085 | 1,054,688 | ||||||||||||
GS Mortgage Securities Trust, | ||||||||||||||||
Series 2013-GC14, Class A3 | 3.526 | 08/10/46 | 109 | 109,484 | ||||||||||||
Series 2014-GC22, Class AAB | 3.467 | 06/10/47 | 1,000 | 1,015,210 | ||||||||||||
Series 2014-GC24, Class A1 | 1.509 | 09/10/47 | 38 | 37,922 | ||||||||||||
Series 2015-GC34, Class A2 | 2.075 | 10/10/48 | 800 | 789,614 | ||||||||||||
Series2016-GS3, Class A1 | 1.429 | 10/10/49 | 626 | 615,761 | ||||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, | ||||||||||||||||
Series2012-CBX, Class A3 | 3.139 | 06/15/45 | 98 | 98,336 | ||||||||||||
Series2016-JP2, Class A1 | 1.324 | 08/15/49 | 58 | 57,201 | ||||||||||||
JPMBB Commercial Mortgage Securities Trust | ||||||||||||||||
Series2015-C31, Class A1 | 1.666 | 08/15/48 | 181 | 179,237 | ||||||||||||
Series2016-C1, Class A1 | 1.695 | 03/15/49 | 92 | 91,931 | ||||||||||||
JPMCC Commercial Mortgage Securities Trust,Series 2017-JP5, Class A1 | 2.086 | 03/15/50 | 681 | 671,732 | ||||||||||||
JPMDB Commercial Mortgage Securities Trust,Series 2017-C7, Class A1 | 2.081 | 10/15/50 | 197 | 194,119 | ||||||||||||
Morgan Stanley Bank of America Merrill Lynch Trust, | ||||||||||||||||
Series2014-C14, Class A3 | 3.669 | 02/15/47 | 174 | 175,545 | ||||||||||||
Series2015-C21, Class A1 | 1.548 | 03/15/48 | 45 | 44,285 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 13 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) |
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Morgan Stanley Capital I Trust, | ||||||||||||||||
Series2015-MS1, Class A1 | 1.638 | % | 05/15/48 | 403 | $ | 399,092 | ||||||||||
Series 2016-BNK2, Class A1 | 1.424 | 11/15/49 | 121 | 118,744 | ||||||||||||
Series 2016-UBS9, Class A1 | 1.711 | 03/15/49 | 132 | 130,388 | ||||||||||||
UBS Commercial Mortgage Trust, | ||||||||||||||||
Series2012-C1, Class A3 | 3.400 | 05/10/45 | 1,459 | 1,471,849 | ||||||||||||
Series2017-C5, Class A1 | 2.139 | 11/15/50 | 338 | 332,578 | ||||||||||||
Series2018-C11, Class A1 | 3.211 | 06/15/51 | 91 | 91,669 | ||||||||||||
Series2018-C8, Class A1 | 2.659 | 02/15/51 | 1,265 | 1,259,575 | ||||||||||||
Wells Fargo Commercial Mortgage Trust, | ||||||||||||||||
Series 2015-LC20, Class A1 | 1.471 | 04/15/50 | 496 | 493,609 | ||||||||||||
Series 2015-LC22, Class A1 | 1.639 | 09/15/58 | 293 | 290,510 | ||||||||||||
Series 2015-NXS2, Class A2 | 3.020 | 07/15/58 | 745 | 744,098 | ||||||||||||
Series 2015-NXS4, Class A1 | 1.889 | 12/15/48 | 100 | 99,683 | ||||||||||||
Series2015-P2, Class A2B | 4.739 | (c) | 12/15/48 | 193 | 199,056 | |||||||||||
Series 2016-BNK1, Class A1 | 1.321 | 08/15/49 | 131 | 128,395 | ||||||||||||
Series2016-C32, Class A1 | 1.577 | 01/15/59 | 351 | 347,211 | ||||||||||||
Series2016-C33, Class A1 | 1.775 | 03/15/59 | 577 | 572,394 | ||||||||||||
Series2016-C35, Class A1 | 1.392 | 07/15/48 | 648 | 638,258 | ||||||||||||
Series2016-C37, Class A1 | 1.944 | 12/15/49 | 1,152 | 1,137,826 | ||||||||||||
Series 2016-LC24, Class A1 | 1.441 | 10/15/49 | 86 | 85,137 | ||||||||||||
Series 2016-NXS6, Class A1 | 1.417 | 11/15/49 | 84 | 82,350 | ||||||||||||
Series2017-RB1, Class A1 | 2.056 | 03/15/50 | 92 | 90,777 | ||||||||||||
Series2017-RC1, Class A1 | 2.012 | 01/15/60 | 225 | 222,600 | ||||||||||||
|
| |||||||||||||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES | 22,399,564 | |||||||||||||||
|
| |||||||||||||||
CORPORATE BONDS 46.7% | ||||||||||||||||
Aerospace & Defense 2.0% | ||||||||||||||||
General Dynamics Corp., | ||||||||||||||||
Gtd. Notes | 2.875 | 05/11/20 | 1,295 | 1,296,660 | ||||||||||||
Gtd. Notes, 3 Month LIBOR + 0.290% | 2.987 | (c) | 05/11/20 | 350 | 350,512 | |||||||||||
Northrop Grumman Corp., Sr. Unsec’d. Notes | 2.080 | 10/15/20 | 768 | 757,531 | ||||||||||||
Raytheon Co., Sr. Unsec’d. Notes | 4.400 | 02/15/20 | 2,300 | 2,332,963 | ||||||||||||
|
| |||||||||||||||
4,737,666 | ||||||||||||||||
Agriculture 0.3% |
| |||||||||||||||
Philip Morris International, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.420% | 3.061 | (c) | 02/21/20 | 600 | 601,139 |
See Notes to Financial Statements.
14 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Auto Manufacturers 4.3% |
| |||||||||||||||
American Honda Finance Corp., |
| |||||||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.290% | 3.057 | %(c) | 12/10/21 | 750 | $ | 745,896 | ||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.470% | 3.257 | (c) | 01/08/21 | 1,200 | 1,202,994 | |||||||||||
BMW US Capital LLC, |
| |||||||||||||||
Gtd. Notes, 144A, 3 Month LIBOR + 0.370% | 3.063 | (c) | 08/14/20 | 250 | 249,591 | |||||||||||
Gtd. Notes, 144A, 3 Month LIBOR + 0.410% | 3.207 | (c) | 04/12/21 | 893 | 891,578 | |||||||||||
Gtd. Notes, 144A, 3 Month LIBOR + 0.500% | 3.188 | (c) | 08/13/21 | 1,465 | 1,461,704 | |||||||||||
Daimler Finance North America LLC, | ||||||||||||||||
Gtd. Notes, 144A, 3 Month LIBOR + 0.390% | 3.128 | (c) | 05/04/20 | 150 | 149,504 | |||||||||||
Gtd. Notes, 144A, 3 Month LIBOR + 0.530% | 3.263 | (c) | 05/05/20 | 360 | 359,634 | |||||||||||
Gtd. Notes, 144A, 3 Month LIBOR + 0.630% | 3.425 | (c) | 01/06/20 | 700 | 700,804 | |||||||||||
Ford Motor Credit Co. LLC, Sr. Unsec’d. Notes, 3 Month LIBOR + 0.830% | 3.606 | (c) | 03/12/19 | 350 | 350,003 | |||||||||||
Harley-Davidson Financial Services, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 2.400 | 09/15/19 | 1,000 | 994,741 | ||||||||||||
Gtd. Notes, 144A, 3 Month LIBOR + 0.500% | 3.141 | (c) | 05/21/20 | 350 | 349,987 | |||||||||||
Nissan Motor Acceptance Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 2.000 | 03/08/19 | 430 | 429,969 | ||||||||||||
Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.390% | 3.187 | (c) | 07/13/20 | 410 | 408,504 | |||||||||||
Toyota Motor Credit Corp., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.100% | 2.883 | (c) | 01/10/20 | 250 | 250,099 | |||||||||||
Toyota Motor Finance Netherlands BV (Netherlands), Sr. Unsec’d. Notes, EMTN, 3 Month LIBOR + 0.250% | 3.026 | (c) | 12/12/19 | 500 | 500,040 | |||||||||||
Volkswagen Group of America Finance LLC, Gtd. Notes, 144A, 3 Month LIBOR + 0.770% | 3.458 | (c) | 11/13/20 | 1,000 | 1,001,417 | |||||||||||
|
| |||||||||||||||
10,046,465 | ||||||||||||||||
Banks 11.0% |
| |||||||||||||||
ABN AMRO Bank NV (Netherlands), Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.570% | 3.209 | (c) | 08/27/21 | 500 | 500,035 | |||||||||||
Australia & New Zealand Banking Group Ltd. (Australia), Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.320% | 3.017 | (c) | 11/09/20 | 450 | 450,186 | |||||||||||
Bangkok Bank PCL (Thailand), Sr. Unsec’d. Notes | 4.800 | 10/18/20 | 300 | 306,600 | ||||||||||||
Bank of China Ltd. (China), Sr. Unsec’d. Notes, GMTN | 2.875 | 06/30/20 | 250 | 248,463 | ||||||||||||
Bank of Montreal (Canada), | ||||||||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.340% | 3.137 | (c) | 07/13/20 | 250 | 250,230 | |||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.440% | 3.228 | (c) | 06/15/20 | 1,021 | 1,023,938 | |||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.460% | 3.257 | (c) | 04/13/21 | 275 | 275,596 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 15 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Banks (cont’d.) | ||||||||||||||||
BB&T Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.570% | 3.358 | %(c) | 06/15/20 | 200 | $ | 200,470 | ||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.715% | 3.502 | (c) | 01/15/20 | 160 | 160,745 | |||||||||||
Capital One NA, | ||||||||||||||||
Sr. Unsec’d. Notes | 2.350 | 01/31/20 | 400 | 397,598 | ||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.765% | 3.544 | (c) | 09/13/19 | 1,500 | 1,502,525 | |||||||||||
Citibank NA, Sr. Unsec’d. Notes, 3 Month LIBOR + 0.260% | 3.061 | (c) | 09/18/19 | 350 | 350,388 | |||||||||||
Citigroup, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.790% | 3.573 | (c) | 01/10/20 | 1,000 | 1,004,444 | |||||||||||
Commonwealth Bank of Australia (Australia), Sr. Unsec’d. Notes, GMTN | 2.050 | 03/15/19 | 400 | 399,936 | ||||||||||||
Fifth Third Bank, | ||||||||||||||||
Sr. Unsec’d. Notes | 2.375 | 04/25/19 | 400 | 399,919 | ||||||||||||
Sr. Unsec’d. Notes | 1.625 | 09/27/19 | 1,100 | 1,092,622 | ||||||||||||
Goldman Sachs Group, Inc. (The), | ||||||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.800% | 3.579 | (c) | 12/13/19 | 1,300 | 1,305,644 | |||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 1.020% | 3.792 | (c) | 10/23/19 | 400 | 402,009 | |||||||||||
Industrial & Commercial Bank of China Ltd. (China), Sr. Unsec’d. Notes | 2.905 | 11/13/20 | 250 | 247,452 | ||||||||||||
Industrial Bank of Korea (South Korea), Sr. Unsec’d. Notes, 144A | 2.000 | 04/23/20 | 350 | 345,434 | ||||||||||||
Morgan Stanley, | ||||||||||||||||
Sr. Unsec’d. Notes, MTN | 5.625 | 09/23/19 | 600 | 608,857 | ||||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.740% | 3.512 | (c) | 07/23/19 | 350 | 350,725 | |||||||||||
National Australia Bank Ltd. (Australia), | 2.250 | 01/10/20 | 2,000 | 1,990,842 | ||||||||||||
Nordea Bank Abp (Finland), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.470% | 3.099 | (c) | 05/29/20 | 400 | 401,262 | |||||||||||
Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.620% | 3.423 | (c) | 09/30/19 | 1,000 | 1,002,614 | |||||||||||
PNC Bank NA, | ||||||||||||||||
Sr. Unsec’d. Notes | 1.950 | 03/04/19 | 400 | 400,000 | ||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.250% | 3.011 | (c) | 01/22/21 | 500 | 499,240 | |||||||||||
RHB Bank Bhd (Malaysia), Sr. Unsec’d. Notes, GMTN | 2.503 | 10/06/21 | 300 | 292,388 | ||||||||||||
Royal Bank of Canada (Canada), Sr. Unsec’d. Notes, GMTN, 3 Month LIBOR + 0.480% | 3.232 | (c) | 07/29/19 | 368 | 368,665 | |||||||||||
Santander UK PLC (United Kingdom), Sr. Unsec’d. Notes, 3 Month LIBOR + 0.660% | 3.344 | (c) | 11/15/21 | 1,000 | 998,693 | |||||||||||
Shinhan Bank Co. Ltd. (South Korea), Sr. Unsec’d. Notes | 2.250 | 04/15/20 | 500 | 494,206 |
See Notes to Financial Statements.
16 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Banks (cont’d.) |
| |||||||||||||||
Skandinaviska Enskilda Banken AB (Sweden), Sr. Unsec’d. Notes | 1.500 | % | 09/13/19 | 1,500 | $ | 1,489,585 | ||||||||||
State Street Corp., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.900% | 3.583 | (c) | 08/18/20 | 1,127 | 1,137,910 | |||||||||||
SunTrust Bank, | ||||||||||||||||
Sr. Unsec’d. Notes | 2.250 | 01/31/20 | 1,250 | 1,242,475 | ||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.530% | 3.274 | (c) | 01/31/20 | 740 | 741,837 | |||||||||||
Toronto-Dominion Bank (The) (Canada), Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.280% | 3.051 | (c) | 06/11/20 | 500 | 500,784 | |||||||||||
UBS AG (London) (Switzerland), Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.580% | 3.347 | (c) | 06/08/20 | 1,000 | 1,003,582 | |||||||||||
US Bank NA, Sr. Unsec’d. Notes | 1.400 | 04/26/19 | 400 | 399,352 | ||||||||||||
Wells Fargo Bank NA, Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.650% | 3.389 | (c) | 12/06/19 | 404 | 405,816 | |||||||||||
Westpac Banking Corp. (Australia), | ||||||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.560% | 3.243 | (c) | 08/19/19 | 105 | 105,196 | |||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.710% | 3.398 | (c) | 05/13/19 | 250 | 250,379 | |||||||||||
|
| |||||||||||||||
25,548,642 | ||||||||||||||||
Beverages 0.9% | ||||||||||||||||
Diageo Capital PLC (United Kingdom), Gtd. Notes, 3 Month LIBOR + 0.240% | 2.923 | (c) | 05/18/20 | 2,000 | 1,999,994 | |||||||||||
Biotechnology 1.3% | ||||||||||||||||
Amgen, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.320% | 3.017 | (c) | 05/10/19 | 1,450 | 1,450,702 | |||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.600% | 3.263 | (c) | 05/22/19 | 415 | 415,465 | |||||||||||
Biogen, Inc., Sr. Unsec’d. Notes | 2.900 | 09/15/20 | 500 | 499,884 | ||||||||||||
Gilead Sciences, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.220% | 3.012 | (c) | 03/20/19 | 645 | 645,071 | |||||||||||
|
| |||||||||||||||
3,011,122 | ||||||||||||||||
Building Materials 0.2% | ||||||||||||||||
Johnson Controls International PLC (Ireland), Sr. Unsec’d. Notes | 5.000 | 03/30/20 | 500 | 508,570 | ||||||||||||
Chemicals 0.9% | ||||||||||||||||
Chevron Phillips Chemical Co. LLC/Chevron Phillips Chemical Co. LP, Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.750% | 3.486 | (c) | 05/01/20 | 600 | 601,271 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 17 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Chemicals (cont’d.) | ||||||||||||||||
DowDuPont, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.710% | 3.394 | %(c) | 11/15/20 | 500 | $ | 502,911 | ||||||||||
EI du Pont de Nemours & Co., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.530% | 3.266 | (c) | 05/01/20 | 1,018 | 1,020,950 | |||||||||||
|
| |||||||||||||||
2,125,132 | ||||||||||||||||
Computers 1.1% | ||||||||||||||||
Apple, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 1.130% | 3.781 | (c) | 02/23/21 | 1,600 | 1,629,965 | |||||||||||
IBM Credit LLC, Sr. Unsec’d. Notes, 3 Month LIBOR + 0.470% | 3.099 | (c) | 11/30/20 | 1,000 | 1,003,638 | |||||||||||
|
| |||||||||||||||
2,633,603 | ||||||||||||||||
Diversified Financial Services 1.8% | ||||||||||||||||
American Express Credit Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 1.050% | 3.828 | (c) | 09/14/20 | 1,600 | 1,616,845 | |||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.730% | 3.376 | (c) | 05/26/20 | 415 | 416,909 | |||||||||||
BOC Aviation Ltd. (Singapore), Sr. Unsec’d. Notes, 144A | 3.000 | 03/30/20 | 250 | 248,964 | ||||||||||||
Charles Schwab Corp. (The), Sr. Unsec’d. Notes, 3 Month LIBOR + 0.320% | 2.961 | (c) | 05/21/21 | 350 | 349,997 | |||||||||||
Western Union Co. (The), Sr. Unsec’d. Notes, 3 Month LIBOR + 0.800% | 3.463 | (c) | 05/22/19 | 1,500 | 1,500,775 | |||||||||||
|
| |||||||||||||||
4,133,490 | ||||||||||||||||
Electric 0.6% |
| |||||||||||||||
Abu Dhabi National Energy Co. PJSC (United Arab Emirates), Sr. Unsec’d. Notes, 144A | 6.250 | 09/16/19 | 360 | 366,034 | ||||||||||||
CenterPoint Energy, Inc., Sr. Unsec’d. Notes | 3.600 | 11/01/21 | 750 | 755,467 | ||||||||||||
Israel Electric Corp. Ltd. (Israel), Sr. Sec’d. Notes, 144A | 9.375 | 01/28/20 | 200 | 210,748 | ||||||||||||
|
| |||||||||||||||
1,332,249 | ||||||||||||||||
Electronics 0.7% | ||||||||||||||||
Honeywell International, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.040% | 2.791 | (c) | 10/30/19 | 530 | 530,180 | |||||||||||
Tyco Electronics Group SA (Luxembourg), Gtd. Notes, 3 Month LIBOR + 0.450% | 3.201 | (c) | 06/05/20 | 1,100 | 1,099,326 | |||||||||||
|
| |||||||||||||||
1,629,506 | ||||||||||||||||
Food 2.1% |
| |||||||||||||||
Campbell Soup Co., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.500% | 3.288 | (c) | 03/16/20 | 400 | 398,428 |
See Notes to Financial Statements.
18 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Food (cont’d.) |
| |||||||||||||||
General Mills, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.540% | 3.319 | %(c) | 04/16/21 | 400 | $ | 397,645 | ||||||||||
JM Smucker Co. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 2.500 | 03/15/20 | 1,300 | 1,292,610 | ||||||||||||
Sr. Unsec’d. Notes | 2.200 | 12/06/19 | 287 | 285,372 | ||||||||||||
Kellogg Co., Sr. Unsec’d. Notes | 3.250 | 05/14/21 | 350 | 349,058 | ||||||||||||
Mondelez International Holdings Netherlands BV (Netherlands), Gtd. Notes, 144A, 3 Month LIBOR + 0.610% | 3.375 | (c) | 10/28/19 | 500 | 501,158 | |||||||||||
Sysco Corp., Gtd. Notes | 1.900 | 04/01/19 | 500 | 499,679 | ||||||||||||
Tyson Foods, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.550% | 3.165 | (c) | 06/02/20 | 500 | 499,086 | |||||||||||
Wm Wrigley Jr Co., Sr. Unsec’d. Notes, 144A | 2.900 | 10/21/19 | 555 | 555,368 | ||||||||||||
|
| |||||||||||||||
4,778,404 | ||||||||||||||||
Healthcare-Products 0.5% |
| |||||||||||||||
Medtronic, Inc., Gtd. Notes, 3 Month LIBOR + 0.800% | 3.588 | (c) | 03/15/20 | 750 | 754,850 | |||||||||||
Stryker Corp., Sr. Unsec’d. Notes | 2.000 | 03/08/19 | 440 | 439,966 | ||||||||||||
|
| |||||||||||||||
1,194,816 | ||||||||||||||||
Healthcare-Services 0.9% |
| |||||||||||||||
Aetna, Inc., Sr. Unsec’d. Notes | 2.200 | 03/15/19 | 500 | 499,947 | ||||||||||||
Quest Diagnostics, Inc., Gtd. Notes | 4.750 | 01/30/20 | 1,500 | 1,524,838 | ||||||||||||
|
| |||||||||||||||
2,024,785 | ||||||||||||||||
Household Products/Wares 0.2% | ||||||||||||||||
Church & Dwight Co., Inc., Sr. Unsec’d. Notes | 2.450 | 12/15/19 | 500 | 497,769 | ||||||||||||
Insurance 4.8% | ||||||||||||||||
AIA Group Ltd. (Hong Kong), Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.520% | 3.312 | (c) | 09/20/21 | 600 | 599,327 | |||||||||||
Jackson National Life Global Funding, Sr. Sec’d. Notes, 144A | 2.200 | 01/30/20 | 2,000 | 1,988,794 | ||||||||||||
Marsh & McLennan Cos., Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.350 | 09/10/19 | 1,500 | 1,496,253 | ||||||||||||
Sr. Unsec’d. Notes | 3.500 | 12/29/20 | 500 | 504,669 | ||||||||||||
MassMutual Global Funding II, Sr. Sec’d. Notes, 144A | 2.350 | 04/09/19 | 1,000 | 999,702 | ||||||||||||
Metropolitan Life Global Funding I, | ||||||||||||||||
Sec’d. Notes, 144A | 3.450 | 10/09/21 | 750 | 754,566 | ||||||||||||
Sec’d. Notes, 144A | 3.375 | 01/11/22 | 1,250 | 1,257,425 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 19 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Insurance (cont’d.) | ||||||||||||||||
New York Life Global Funding, | ||||||||||||||||
Sec’d. Notes, 144A | 1.500 | % | 10/24/19 | 1,000 | $ | 992,219 | ||||||||||
Sec’d. Notes, 144A, 3 Month LIBOR + 0.320% | 3.054 | (c) | 08/06/21 | 500 | 500,123 | |||||||||||
Principal Life Global Funding II, | ||||||||||||||||
Sec’d. Notes, 144A, 3 Month LIBOR + 0.300% | 3.122 | (c) | 06/26/20 | 400 | 399,947 | |||||||||||
Sr. Sec’d. Notes, 144A | 2.625 | 11/19/20 | 1,000 | 993,760 | ||||||||||||
Protective Life Global Funding, Sec’d. Notes, 144A | 2.262 | 04/08/20 | 500 | 496,652 | ||||||||||||
|
| |||||||||||||||
10,983,437 | ||||||||||||||||
Internet 0.6% | ||||||||||||||||
eBay, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.480% | 3.216 | (c) | 08/01/19 | 1,440 | 1,440,918 | |||||||||||
Lodging 0.4% | ||||||||||||||||
Marriott International, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.600% | 3.226 | (c) | 12/01/20 | 800 | 800,717 | |||||||||||
Machinery-Constructions & Mining 0.7% | ||||||||||||||||
Caterpillar Financial Services Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.350% | 3.116 | (c) | 12/07/20 | 600 | 600,036 | |||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.510% | 3.293 | (c) | 01/10/20 | 1,120 | 1,124,218 | |||||||||||
|
| |||||||||||||||
1,724,254 | ||||||||||||||||
Machinery-Diversified 0.6% | ||||||||||||||||
John Deere Capital Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.260% | 3.027 | (c) | 09/10/21 | 400 | 398,161 | |||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.300% | 3.079 | (c) | 03/13/20 | 1,000 | 1,001,754 | |||||||||||
|
| |||||||||||||||
1,399,915 | ||||||||||||||||
Media 0.7% | ||||||||||||||||
Comcast Corp., | ||||||||||||||||
Gtd. Notes | 5.700 | 07/01/19 | 400 | 403,768 | ||||||||||||
Gtd. Notes, 3 Month LIBOR + 0.330% | 3.127 | (c) | 10/01/20 | 750 | 751,099 | |||||||||||
Walt Disney Co (The), Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.310% | 2.939 | (c) | 05/30/19 | 500 | 500,321 | |||||||||||
|
| |||||||||||||||
1,655,188 | ||||||||||||||||
Mining 0.7% | ||||||||||||||||
Barrick PD Australia Finance Pty Ltd. (Australia), Gtd. Notes | 4.950 | 01/15/20 | 400 | 407,048 | ||||||||||||
Glencore Funding LLC, Gtd. Notes, 144A | 3.125 | 04/29/19 | 1,150 | 1,147,196 | ||||||||||||
|
| |||||||||||||||
1,554,244 |
See Notes to Financial Statements.
20 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Miscellaneous Manufacturer 0.9% | ||||||||||||||||
Siemens Financieringsmaatschappij NV (Netherlands), | ||||||||||||||||
Gtd. Notes, 144A | 2.200 | % | 03/16/20 | 1,000 | $ | 992,666 | ||||||||||
Gtd. Notes, 144A, 3 Month LIBOR + 0.340% | 3.128 | (c) | 03/16/20 | 1,000 | 1,000,069 | |||||||||||
|
| |||||||||||||||
1,992,735 | ||||||||||||||||
Oil & Gas 1.8% | ||||||||||||||||
BP Capital Markets PLC (United Kingdom), Gtd. Notes | 1.768 | 09/19/19 | 327 | 325,291 | ||||||||||||
EOG Resources, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.625 | 06/01/19 | 450 | 452,707 | ||||||||||||
Sr. Unsec’d. Notes | 2.450 | 04/01/20 | 500 | 497,075 | ||||||||||||
Lukoil International Finance BV (Netherlands), Gtd. Notes, 144A | 7.250 | 11/05/19 | 200 | 204,818 | ||||||||||||
Occidental Petroleum Corp., Sr. Unsec’d. Notes | 4.100 | 02/01/21 | 262 | 267,144 | ||||||||||||
Petroleos Mexicanos (Mexico), Gtd. Notes | 6.000 | 03/05/20 | 350 | 356,080 | ||||||||||||
Shell International Finance BV (Netherlands), Gtd. Notes, 3 Month LIBOR + 0.350% | 3.126 | (c) | 09/12/19 | 1,500 | 1,502,357 | |||||||||||
Sinopec Group Overseas Development 2015 Ltd. (British Virgin Islands), Gtd. Notes, 144A | 2.500 | 04/28/20 | 375 | 372,131 | ||||||||||||
|
| |||||||||||||||
3,977,603 | ||||||||||||||||
Oil & Gas Services 0.3% | ||||||||||||||||
Schlumberger Holdings Corp., Sr. Unsec’d. Notes, 144A | 3.000 | 12/21/20 | 700 | 697,594 | ||||||||||||
Pharmaceuticals 1.2% | ||||||||||||||||
AstraZeneca PLC (United Kingdom), Sr. Unsec’d. Notes | 1.950 | 09/18/19 | 500 | 497,272 | ||||||||||||
Bayer US Finance II LLC, Gtd. Notes, 144A | 2.125 | 07/15/19 | 405 | 403,497 | ||||||||||||
CVS Health Corp., Sr. Unsec’d. Notes | 2.250 | 08/12/19 | 350 | 348,949 | ||||||||||||
Pfizer, Inc., Sr. Unsec’d. Notes | 5.200 | 08/12/20 | 500 | 517,324 | ||||||||||||
Takeda Pharmaceutical Co. Ltd. (Japan), Sr. Unsec’d. Notes, 144A | 3.800 | 11/26/20 | 1,000 | 1,008,794 | ||||||||||||
|
| |||||||||||||||
2,775,836 | ||||||||||||||||
Pipelines 0.3% | ||||||||||||||||
Enterprise Products Operating LLC, Gtd. Notes | 3.500 | 02/01/22 | 750 | 758,594 | ||||||||||||
Real Estate Investment Trusts (REITs) 0.2% | ||||||||||||||||
AvalonBay Communities, Inc., Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.430% | 3.217 | (c) | 01/15/21 | 395 | 391,845 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 21 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Retail 1.5% | ||||||||||||||||
Lowe’s Cos., Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.420% | 3.187 | %(c) | 09/10/19 | 1,159 | $ | 1,160,555 | ||||||||||
McDonald’s Corp., Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.430% | 3.195 | (c) | 10/28/21 | 1,900 | 1,895,487 | |||||||||||
Walmart, Inc., Sr. Unsec’d. Notes | 3.125 | 06/23/21 | 500 | 504,955 | ||||||||||||
|
| |||||||||||||||
3,560,997 | ||||||||||||||||
Software 0.4% | ||||||||||||||||
Fidelity National Information Services, Inc., Sr. Unsec’d. Notes | 3.625 | 10/15/20 | 1,000 | 1,006,849 | ||||||||||||
Telecommunications 0.3% | ||||||||||||||||
AT&T, Inc., Sr. Unsec’d. Notes | 2.300 | 03/11/19 | 350 | 349,980 | ||||||||||||
Verizon Communications, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.550% | 3.213 | (c) | 05/22/20 | 351 | 352,453 | |||||||||||
|
| |||||||||||||||
702,433 | ||||||||||||||||
Transportation 2.1% | ||||||||||||||||
Ryder System, Inc., Sr. Unsec’d. Notes, MTN | 2.500 | 05/11/20 | 382 | 379,320 | ||||||||||||
Union Pacific Corp., Sr. Unsec’d. Notes | 1.800 | 02/01/20 | 2,000 | 1,980,080 | ||||||||||||
United Parcel Service, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.150% | 2.947 | (c) | 04/01/21 | 2,500 | 2,496,498 | |||||||||||
|
| |||||||||||||||
4,855,898 | ||||||||||||||||
Trucking & Leasing 0.4% | ||||||||||||||||
Aviation Capital Group LLC, Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.950% | 3.576 | (c) | 06/01/21 | 1,000 | 998,947 | |||||||||||
|
| |||||||||||||||
TOTAL CORPORATE BONDS | 108,081,356 | |||||||||||||||
|
| |||||||||||||||
CERTIFICATE OF DEPOSIT 1.2% | ||||||||||||||||
Banks 1.2% | ||||||||||||||||
Bank of Nova Scotia (Canada), | ||||||||||||||||
3 Month LIBOR + 0.190% | 2.791 | (c) | 03/11/20 | 500 | 500,350 | |||||||||||
3 Month LIBOR + 0.220% | 3.023 | (c) | 12/30/19 | 325 | 325,526 | |||||||||||
3 Month LIBOR + 0.280% | 3.070 | (c) | 09/21/20 | 500 | 500,224 | |||||||||||
Canadian Imperial Bank of Commerce (Canada), 3 Month LIBOR + 0.320% | 3.124 | (c) | 07/08/19 | 350 | 350,414 |
See Notes to Financial Statements.
22 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CERTIFICATE OF DEPOSIT (Continued) | ||||||||||||||||
Banks (cont’d.) | ||||||||||||||||
Credit Agricole Corporate & Investment Bank (France), 3 Month LIBOR + 0.385% | 3.082 | %(c) | 05/11/20 | 600 | $ | 601,291 | ||||||||||
Nordea Bank Abp (Sweden), 3 Month LIBOR + 0.300% | 3.051 | (c) | 06/05/20 | 500 | 500,920 | |||||||||||
|
| |||||||||||||||
TOTAL CERTIFICATE OF DEPOSIT | 2,778,725 | |||||||||||||||
|
| |||||||||||||||
SOVEREIGN BONDS 0.2% | ||||||||||||||||
Lithuania Government International Bond (Lithuania), Sr. Unsec’d. Notes | 6.125 | 03/09/21 | 300 | 316,730 | ||||||||||||
Qatar Government International Bond (Qatar), Sr. Unsec’d. Notes, 144A | 5.250 | 01/20/20 | 200 | 203,863 | ||||||||||||
|
| |||||||||||||||
TOTAL SOVEREIGN BONDS | 520,593 | |||||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS | 156,472,383 | |||||||||||||||
|
| |||||||||||||||
Shares | ||||||||||||||||
SHORT-TERM INVESTMENTS 33.9% | ||||||||||||||||
AFFILIATED MUTUAL FUND 0.0%* | ||||||||||||||||
PGIM Institutional Money Market Fund | 14,050 | 14,054 | ||||||||||||||
|
| |||||||||||||||
Principal | ||||||||||||||||
TIME DEPOSIT 0.0%* | ||||||||||||||||
Citibank, NA (cost $21,628) | 1.750 | 03/01/19 | 22 | 21,628 | ||||||||||||
|
| |||||||||||||||
CERTIFICATE OF DEPOSIT 7.6% | ||||||||||||||||
Banks 7.6% | ||||||||||||||||
Bank of Montreal (Canada), 1 Month LIBOR + 0.330% | 2.843 | (c) | 08/06/19 | 500 | 500,357 | |||||||||||
Bank of Nova Scotia (Canada), | ||||||||||||||||
3 Month LIBOR + 0.200% | 2.913 | (c) | 09/20/19 | 750 | 750,844 | |||||||||||
3 Month LIBOR + 0.260% | 2.998 | (c) | 11/04/19 | 400 | 400,638 | |||||||||||
BNP Paribas SA (France), | ||||||||||||||||
1 Month LIBOR + 0.300% | 2.813 | (c) | 05/08/19 | 1,000 | 999,480 | |||||||||||
3 Month LIBOR + 0.140% | 2.944 | (c) | 06/19/19 | 1,000 | 1,000,344 | |||||||||||
Canadian Imperial Bank of Commerce (Canada), | ||||||||||||||||
1 Month LIBOR + 0.400% | 2.917 | (c) | 12/10/19 | 540 | 541,028 | |||||||||||
1 Month LIBOR + 0.400% | 2.904 | (c) | 12/12/19 | 300 | 300,569 | |||||||||||
3 Month LIBOR + 0.220% | 3.042 | (c) | 12/27/19 | 500 | 500,760 | |||||||||||
3 Month LIBOR + 0.410% | 3.202 | (c) | 09/20/19 | 310 | 310,563 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 23 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CERTIFICATE OF DEPOSIT (Continued) | ||||||||||||||||
Banks (cont’d.) | ||||||||||||||||
Cooperatieve Rabobank UA (Netherlands), 1 Month LIBOR + 0.290% | 2.779 | %(c) | 07/01/19 | 1,000 | $ | 1,000,645 | ||||||||||
Credit Agricole Corporate & Investment Bank (France), 3 Month LIBOR + 0.090% | 2.894 | (c) | 07/08/19 | 1,000 | 1,000,408 | |||||||||||
Credit Industriel et Commercial (France), 1 Month LIBOR + 0.310% | 2.800 | (c) | 06/04/19 | 1,000 | 1,000,635 | |||||||||||
Credit Suisse AG (Switzerland), | ||||||||||||||||
3 Month LIBOR + 0.170% | 2.967 | (c) | 10/01/19 | 300 | 300,187 | |||||||||||
3 Month LIBOR + 0.320% | 3.117 | (c) | 04/09/19 | 350 | 350,192 | |||||||||||
Lloyds Bank Corporate Markets PLC (United Kingdom), 3 Month LIBOR + 0.220% | 3.017 | (c) | 10/09/19 | 2,000 | 2,001,413 | |||||||||||
Mizuho Bank Ltd. (Japan), | ||||||||||||||||
1 Month LIBOR + 0.270% | 2.750 | (c) | 04/18/19 | 500 | 500,103 | |||||||||||
3 Month LIBOR + 0.100% | 2.897 | (c) | 04/09/19 | 300 | 300,027 | |||||||||||
MUFG Bank Ltd. (Japan), 1 Month LIBOR + 0.300% | 2.817 | (c) | 05/10/19 | 600 | 600,134 | |||||||||||
Natixis SA (France), | ||||||||||||||||
1 Month LIBOR + 0.350% | 2.864 | (c) | 03/05/19 | 500 | 500,031 | |||||||||||
3 Month LIBOR - 0.120% | 2.717 | (c) | 06/12/19 | 700 | 700,245 | |||||||||||
3 Month LIBOR + 0.230% | 3.013 | (c) | 01/10/20 | 800 | 800,869 | |||||||||||
Sumitomo Mitsui Banking Corp. (Japan), 3 Month LIBOR + 0.150% | 2.929 | (c) | 04/16/19 | 1,000 | 1,000,167 | |||||||||||
Svenska Handelsbanken (Sweden), 1 Month LIBOR + 0.300% | 2.813 | (c) | 08/06/19 | 650 | 650,627 | |||||||||||
Swedbank AB (Sweden), 1 Month LIBOR + 0.290% | 2.780 | (c) | 07/25/19 | 1,000 | 1,000,545 | |||||||||||
US Bank NA, | 2.720 | 05/23/19 | 650 | 650,114 | ||||||||||||
|
| |||||||||||||||
TOTAL CERTIFICATE OF DEPOSIT |
| 17,660,925 | ||||||||||||||
|
| |||||||||||||||
COMMERCIAL PAPER 26.1% | ||||||||||||||||
AT&T, Inc. | 2.856 | 03/29/19 | 250 | 249,449 | ||||||||||||
Australia & New Zealand Banking Group Ltd. | 2.957 | (c) | 10/10/19 | 750 | 750,667 | |||||||||||
BAT International Finance PLC | 2.877 | 03/06/19 | 2000 | 1,999,121 | ||||||||||||
Cabot Corp. | 2.836 | 03/01/19 | 400 | 399,971 | ||||||||||||
Cabot Corp. | 2.744 | 03/18/19 | 2100 | 2,097,178 | ||||||||||||
CenterPoint Energy, Inc. | 2.889 | 03/08/19 | 700 | 699,595 | ||||||||||||
CenterPoint Energy, Inc. | 2.796 | 03/06/19 | 1000 | 999,567 | ||||||||||||
Commonwealth Bank of Australia | 2.879 | (c) | 01/17/20 | 1500 | 1,500,897 | |||||||||||
Cox Enterprises, Inc. | 2.752 | 03/11/19 | 2000 | 1,998,371 |
See Notes to Financial Statements.
24 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
COMMERCIAL PAPER (Continued) | ||||||||||||||||
EI du Pont de Nemours & Co. | 3.122 | % | 03/12/19 | 600 | $ | 599,476 | ||||||||||
Electric de France SA | 3.129 | 03/15/19 | 1000 | 998,888 | ||||||||||||
Enbridge (US) Inc. | 2.764 | 03/20/19 | 1200 | 1,198,193 | ||||||||||||
Enbridge (US) Inc. | 2.754 | 03/19/19 | 1050 | 1,048,503 | ||||||||||||
Eni Finance USA Inc. | 3.104 | 03/18/19 | 1600 | 1,597,845 | ||||||||||||
Entergy Corp. | 2.732 | 03/05/19 | 650 | 649,759 | ||||||||||||
Entergy Corp. | 3.080 | 03/14/19 | 1000 | 998,958 | ||||||||||||
Entergy Corp. | 3.151 | 03/04/19 | 600 | 599,822 | ||||||||||||
Federation des Caisses Desjardins du Quebec (Canada)144A | 2.887 | (c) | 12/10/19 | 1000 | 1,001,590 | |||||||||||
FMC Technologies, Inc. | 3.175 | 03/19/19 | 500 | 499,287 | ||||||||||||
FMC Technologies, Inc. | 3.176 | 03/14/19 | 1100 | 1,098,860 | ||||||||||||
Ford Motor Credit Co. LLC | 3.157 | 04/08/19 | 150 | 149,494 | ||||||||||||
Glencore Funding LLC | 2.921 | 03/05/19 | 500 | 499,813 | ||||||||||||
Glencore Funding LLC | 3.118 | 03/15/19 | 900 | 898,980 | ||||||||||||
HSBC Bank PLC (United Kingdom)144A | 2.751 | (c) | 05/22/19 | 750 | 750,373 | |||||||||||
HSBC Bank PLC (United Kingdom)144A | 2.928 | (c) | 08/08/19 | 250 | 250,202 | |||||||||||
HSBC USA, Inc.144A | 2.953 | (c) | 10/10/19 | 1000 | 999,895 | |||||||||||
ING US Funding LLC | 2.784 | (c) | 07/26/19 | 1000 | 1,000,695 | |||||||||||
ING US Funding LLC | 2.803 | (c) | 07/08/19 | 1000 | 1,000,627 | |||||||||||
Interpublic Group of Cos., Inc. | 2.754 | 03/21/19 | 2000 | 1,996,827 | ||||||||||||
Keurig Dr Pepper, Inc. | 2.807 | 03/14/19 | 2000 | 1,997,935 | ||||||||||||
LyondellBasell Industries NV | 3.092 | 03/14/19 | 1600 | 1,598,348 | ||||||||||||
Marriott International, Inc. | 2.743 | 03/12/19 | 1700 | 1,698,493 | ||||||||||||
McKesson Corp. | 2.806 | 03/19/19 | 1750 | 1,747,504 | ||||||||||||
Mondelez International, Inc. | 3.151 | 03/14/19 | 1000 | 998,963 | ||||||||||||
National Grid PLC (United Kingdom) | 3.036 | 03/11/19 | 800 | 799,351 | ||||||||||||
Nissan Motor Acceptance Corp. | 3.176 | 03/15/19 | 500 | 499,492 | ||||||||||||
PPL Electric Utilities Corp. | 3.126 | 03/08/19 | 1200 | 1,199,295 | ||||||||||||
Publ. Svc. Co. of | 2.754 | 03/08/19 | 1125 | 1,124,339 | ||||||||||||
Royal Bank of Canada (Canada) | 2.809 | (c) | 08/15/19 | 650 | 650,536 | |||||||||||
Sempra Energy | 2.797 | 03/18/19 | 2000 | 1,997,306 | ||||||||||||
Societe Generale SA (France)144A | 3.165 | (c) | 01/09/20 | 2000 | 2,004,006 | |||||||||||
SunCor Energy, Inc. | 3.066 | 03/12/19 | 400 | 399,646 | ||||||||||||
SunCor Energy, Inc. | 3.165 | 03/18/19 | 250 | 249,663 | ||||||||||||
SunCor Energy, Inc. | 3.125 | 03/14/19 | 1300 | 1,298,652 | ||||||||||||
Telus Corp. | 3.124 | 03/20/19 | 1600 | 1,597,591 | ||||||||||||
Toronto-Dominion Bank (The) (Canada)144A | 2.887 | (c) | 08/09/19 | 700 | 700,453 | |||||||||||
Toyota Motor Credit Corp. (Australia) | 2.813 | 08/09/19 | 500 | 500,281 | ||||||||||||
TransCanada Pipelines Ltd. | 3.029 | 03/14/19 | 1000 | 998,963 | ||||||||||||
Tyco International PLC | 2.806 | 03/25/19 | 400 | 399,242 | ||||||||||||
UBS AG (London) (United Kingdom)144A | 2.774 | (c) | 09/03/19 | 600 | 600,317 | |||||||||||
United Technologies Corp. | 2.836 | 03/18/19 | 800 | 798,922 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 25 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
COMMERCIAL PAPER (Continued) | ||||||||||||||||
United Technologies Corp. | 2.786 | % | 03/08/19 | 1220 | $ | 1,219,283 | ||||||||||
VW Credit, Inc. | 3.227 | 03/20/19 | 650 | 649,021 | ||||||||||||
Walgreens Boots Alliance, Inc. | 3.205 | 03/18/19 | 400 | 399,461 | ||||||||||||
Walgreens Boots Alliance, Inc. | 3.127 | 03/15/19 | 1200 | 1,198,665 | ||||||||||||
WEC Energy Group, Inc. | 2.747 | 03/07/19 | 2500 | 2,498,716 | ||||||||||||
Westpac Banking Corp. (Australia)144A | 2.881 | (c) | 01/17/20 | 1000 | 1,000,683 | |||||||||||
Westpac Banking Corp. (Australia)144A | 2.843 | (c) | 11/22/19 | 700 | 700,896 | |||||||||||
Whirlpool Corp. | 2.816 | 03/29/19 | 350 | 349,231 | ||||||||||||
|
| |||||||||||||||
TOTAL COMMERCIAL PAPER | 60,408,157 | |||||||||||||||
|
| |||||||||||||||
CORPORATE NOTES 0.2% | ||||||||||||||||
Banks | ||||||||||||||||
Bank of America NA (cost $500,000) | 05/13/19 | 500 | 500,162 | |||||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM TERM INVESTMENTS | 78,604,926 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 101.5% | 235,077,309 | |||||||||||||||
Liabilities in excess of other assets (1.5)% | (3,379,703 | ) | ||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 231,697,606 | ||||||||||||||
|
|
The following abbreviations are used in the semi-annual report:
(Q)—Quarterly payment frequency for swaps
(S)—Semiannual payment frequency for swaps
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers.
CLO—Collateralized Loan Obligation
EMTN—Euro Medium Term Note
GMTN—Global Medium Term Note
LIBOR—London Interbank Offered Rate
MTN—Medium Term Note
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
(c) | Variable rate instrument. The interest rate shown reflects the rate in effect at February 28, 2019. |
(o) | New issue security. Variable rate in effect upon settlement. |
(s) | Rate represents yield to maturity at purchase date. |
(w) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Institutional Money Market Fund. |
* | A zero balance may reflect actual amounts rounding to less than 0.05%. |
See Notes to Financial Statements.
26 |
Interest rate swap agreements outstanding at February 28, 2019:
Notional Amount (000)# | Termination Date | Fixed Rate | Floating Rate | Value at Trade Date | Value at February 28, 2019 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
Centrally cleared swap agreements: | ||||||||||||||||||||||||
3,050 | 10/09/19 | 2.545%(S) | 3 Month LIBOR(1)(Q) | $ | 1,289 | $ | (15,801 | ) | $ | (17,090 | ) | |||||||||||||
4,510 | 04/10/20 | 2.587%(S) | 3 Month LIBOR(1)(Q) | 10,989 | (23,460 | ) | (34,449 | ) | ||||||||||||||||
2,000 | 04/10/19 | 2.434%(S) | 3 Month LIBOR(1)(Q) | 152 | (10,394 | ) | (10,546 | ) | ||||||||||||||||
3,645 | 07/18/20 | 2.711%(S) | 3 Month LIBOR(1)(Q) | 6,974 | (2,102 | ) | (9,076 | ) | ||||||||||||||||
5,250 | 11/02/20 | 2.806%(S) | 3 Month LIBOR(1)(Q) | 15,686 | (51,079 | ) | (66,765 | ) | ||||||||||||||||
1,150 | 05/09/21 | 2.855%(S) | 3 Month LIBOR(1)(Q) | 826 | (14,611 | ) | (15,437 | ) | ||||||||||||||||
900 | 11/24/19 | 2.715%(S) | 3 Month LIBOR(1)(Q) | 510 | (6,367 | ) | (6,877 | ) | ||||||||||||||||
2,000 | 03/11/21 | 2.850%(S) | 3 Month LIBOR(1)(Q) | 4,173 | (23,903 | ) | (28,076 | ) | ||||||||||||||||
2,850 | 07/27/21 | 2.929%(S) | 3 Month LIBOR(1)(Q) | (9,829 | ) | (22,387 | ) | (12,558 | ) | |||||||||||||||
4,640 | 02/28/20 | 2.742%(S) | 3 Month LIBOR(1)(Q) | (3,213 | ) | (3,709 | ) | (496 | ) | |||||||||||||||
2,550 | 02/05/20 | 2.350%(S) | 3 Month LIBOR(1)(Q) | 13,858 | 8,192 | (5,666 | ) | |||||||||||||||||
2,200 | 10/04/21 | 3.046%(S) | 3 Month LIBOR(1)(Q) | 5,073 | (42,540 | ) | (47,613 | ) | ||||||||||||||||
3,135 | 12/21/20 | 3.008%(S) | 3 Month LIBOR(1)(Q) | (8,306 | ) | (21,965 | ) | (13,659 | ) | |||||||||||||||
3,350 | 01/11/22 | 2.672%(S) | 3 Month LIBOR(1)(Q) | (5,422 | ) | (7,344 | ) | (1,922 | ) | |||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
$ | 32,760 | $ | (237,470 | ) | $ | (270,230 | ) | |||||||||||||||||
|
|
|
|
|
|
(1) | The Fund pays the fixed rate and receives the floating rate. |
(2) | The Fund pays the floating rate and receives the fixed rate. |
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral to cover requirements for open centrally cleared/ exchange-traded derivatives are listed by broker as follows:
Broker | Cash and/or Foreign Currency | Securities Market Value | ||||||
Citigroup Global Markets, Inc. | $ | 177,000 | $ | — |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 27 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of February 28, 2019 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Asset-Backed Securities | ||||||||||||
Collateralized Loan Obligations | $ | — | $ | 22,692,145 | $ | — | ||||||
Commercial Mortgage-Backed Securities | — | 22,399,564 | — | |||||||||
Corporate Bonds | — | 108,081,356 | — | |||||||||
Affiliated Mutual Fund | 14,054 | — | — | |||||||||
Time Deposit | — | 21,628 | — | |||||||||
Certificate of Deposit | — | 20,439,650 | — | |||||||||
Sovereign Bonds | — | 520,593 | — | |||||||||
Commercial Paper | — | 60,408,157 | — | |||||||||
Corporate Notes | — | 500,162 | — | |||||||||
Other Financial Instruments* | ||||||||||||
Centrally Cleared Interest Rate Swap Agreements | — | (270,230 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Total | $ | 14,054 | $ | 234,793,025 | $ | — | ||||||
|
|
|
|
|
|
* | Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures, forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value. |
See Notes to Financial Statements.
28 |
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of February 28, 2019 were as follows (unaudited):
Commercial Papers | 26.1 | % | ||
Banks | 20.0 | |||
Commercial Mortgage- Backed Securities | 9.7 | |||
Insurance | 4.8 | |||
Auto Manufacturers | 4.3 | |||
Transportation | 2.1 | |||
Food | 2.1 | |||
Aerospace & Defense | 2.0 | |||
Diversified Financial Services | 1.8 | |||
Oil & Gas | 1.8 | |||
Retail | 1.5 | |||
Biotechnology | 1.3 | |||
Pharmaceuticals | 1.2 | |||
Computers | 1.1 | |||
Beverages | 0.9 | |||
Healthcare-Services | 0.9 | |||
Miscellaneous Manufacturer | 0.9 | |||
Chemicals | 0.9 | |||
Mining | 0.7 | |||
Media | 0.7 | |||
Electronics | 0.7 | |||
Machinery-Constructions & Mining | 0.7 | |||
Collateralized Loan Obligations | 9.8 | % | ||
Machinery-Diversified | 0.6 | |||
Electric | 0.6 | |||
Internet | 0.6 | |||
Healthcare-Products | 0.5 | |||
Software | 0.4 | |||
Trucking & Leasing | 0.4 | |||
Lodging | 0.4 | |||
Agriculture | 0.3 | |||
Telecommunications | 0.3 | |||
Pipelines | 0.3 | |||
Oil & Gas Services | 0.3 | |||
Building Materials | 0.2 | |||
Household Products/Wares | 0.2 | |||
Real Estate Investment Trusts (REITs) | 0.2 | |||
Sovereign | 0.2 | |||
Affiliated Mutual Fund | 0.0 | * | ||
Time Deposit | 0.0 | * | ||
|
| |||
101.5 | ||||
Other assets in excess of liabilities | (1.5 | ) | ||
|
| |||
100.0 | % | |||
|
|
* | Less than +/- 0.05%. |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is interest rate contracts risk. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 29 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Fair values of derivative instruments as of February 28, 2019 as presented in the Statement of Assets and Liabilities:
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted | Statement of | Fair Value | Statement of | Fair Value | ||||||||
Interest rate contracts | Due from/to broker—variation margin swaps* | $ | — | Due from/to broker—variation margin swaps* | $ | (270,230 | ) | |||||
|
|
|
|
* | Includes cumulative appreciation (depreciation) as reported in the schedule of open centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects of derivative instruments on the Statement of Operations for the period ended February 28, 2019 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | ||||
Derivatives not accounted for as hedging | Swaps | |||
Interest rate contracts | $ | 64,148 | ||
|
|
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||
Derivatives not accounted for as hedging | Swaps | |||
Interest rate contracts | $ | (211,266 | ) | |
|
|
For the period ended February 28, 2019 the Fund’s average volume of derivative activities is as follows:
Interest Rate Swap Agreements(1) |
$25,320,000 |
(1) | Notional Amount in USD. |
See Notes to Financial Statements.
30 |
Statement of Assets & Liabilities(unaudited)
as of February 28, 2019
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $234,872,237) | $ | 235,063,255 | ||
Affiliated investments (cost $13,990) | 14,054 | |||
Cash | 234 | |||
Receivable for Fund shares sold | 3,756,518 | |||
Interest and dividends receivable | 863,922 | |||
Deposit with broker for centrally cleared/exchange-traded derivatives | 177,000 | |||
Due from broker—variation margin swaps | 13,116 | |||
Receivable for investments sold | 25,742 | |||
|
| |||
Total assets | 239,913,841 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 8,192,187 | |||
Management fee payable | 24,048 | |||
|
| |||
Total Liabilities | 8,216,235 | |||
|
| |||
Net Assets | $ | 231,697,606 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 4,625 | ||
Paid-in capital in excess of par | 231,293,193 | |||
|
| |||
231,297,818 | ||||
Total distributable earnings (loss) | 399,788 | |||
|
| |||
Net assets, February 28, 2019 | $ | 231,697,606 | ||
|
| |||
Net asset value, offering price and redemption price per share, | $ | 50.10 | ||
|
|
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 31 |
Statement of Operations(unaudited)
Period Ended February 28, 2019
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 1,938,263 | ||
Affiliated dividend income | 9,226 | |||
Miscellaneous Income | 1,079 | |||
|
| |||
Total income | 1,948,568 | |||
|
| |||
Expenses | ||||
Management fee | 97,887 | |||
|
| |||
Total expenses | 97,887 | |||
Less: Management fee waiver and/or expense reimbursement | (275 | ) | ||
|
| |||
Net expenses | 97,612 | |||
|
| |||
Net investment income (loss) | 1,850,956 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(598)) | 16,335 | |||
Swap agreement transactions | 64,148 | |||
Foreign currency transactions | 63 | |||
|
| |||
80,546 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $64) | 163,022 | |||
Swap agreements | (211,266 | ) | ||
|
| |||
(48,244 | ) | |||
|
| |||
Net gain (loss) on investment transactions | 32,302 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 1,883,258 | ||
|
|
See Notes to Financial Statements.
32 |
Statements of Changes in Net Assets
Six Months February 28, 2019 | Period Ended August 31, 2018* | |||||||
Increase (Decrease) in Net Assets |
| |||||||
Operations |
| |||||||
Net investment income (loss) | $ | 1,850,956 | $ | 349,649 | ||||
Net realized gain (loss) on investments | 80,546 | 48,332 | ||||||
Net change in unrealized appreciation (depreciation) on investments | (48,244 | ) | (30,904 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 1,883,258 | 367,077 | ||||||
|
|
|
| |||||
Dividends and Distributions |
| |||||||
Distributions from distributable earnings | (1,573,313 | ) | — | |||||
|
|
|
| |||||
Distributions from net investment income | ** | (277,234 | ) | |||||
|
|
|
| |||||
Fund share transactions (Net of share conversions) |
| |||||||
Net proceeds from shares sold | 188,760,208 | 52,536,890 | ||||||
Cost of shares reacquired | (9,999,280 | ) | (100,000 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | 178,760,928 | 52,436,890 | ||||||
|
|
|
| |||||
Total increase (decrease) | 179,070,873 | 52,526,733 | ||||||
Net Assets: |
| |||||||
Beginning of period | 52,626,733 | 100,000 | ||||||
|
|
|
| |||||
End of period(a) | $ | 231,697,606 | $ | 52,626,733 | ||||
|
|
|
| |||||
(a) Includes undistributed net investment income of: | $ | ** | $ | 78,236 | ||||
|
|
|
|
* | For the period from April 5, 2018 (commencement of operations) through August 31, 2018. |
** | For the period ended February 28, 2019 the Fund has adopted amendments to RegulationS-X (refer to Note 9). |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 33 |
Notes to Financial Statements(unaudited)
PGIM ETF Trust (the “Trust”) is a diversified,open-end management investment company registered under the Investment Company Act of 1940, as amended (“1940 Act”), and operated as an exchange-traded fund. The Trust was organized as a Delaware statutory trust on October 23, 2017 and consists of six separate series (each, a “Fund” and collectively, the “Funds”): PGIM Ultra Short Bond ETF, PGIM Active High Yield Bond ETF, PGIM QMA Strategic AlphaLarge-Cap Core ETF, PGIM QMA Strategic AlphaSmall-Cap Growth ETF, PGIM QMA Strategic Alpha Small- Cap Value ETF and PGIM QMA Strategic Alpha International Equity ETF.
These financial statements relate only to PGIM Ultra Short Bond ETF.
The investment objective of the Fund is to seek total return through a combination of current income and capital appreciation, consistent with preservation of capital.
1. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services—Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation:The Fund holds securities and other assets and liabilities that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Trust’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.
For the fiscal reportingperiod-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign
34 |
securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820—Fair Value Measurements and Disclosures.
Investments inopen-end,non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party vendor source. The Fund utilizes the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are generally valued at the daily settlement price determined by the respective exchange. These securities are classified as Level 2 in the fair value hierarchy, as the daily settlement price is not public.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in which it operates.
PGIM Ultra Short Bond ETF | 35 |
Notes to Financial Statements (unaudited) (continued)
Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Illiquid Securities:Pursuant to Rule22e-4 under the Investment Company Act of 1940, the Fund has adopted a Board approved Liquidity Risk Management Program (“LRMP”) that requires, among other things, that the Fund limit its illiquid investments that are assets to no more than 15% of net assets. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, may not reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its subadviser and may incur transaction costs that would not be incurred in the sale of securities that were freely marketable.
Restricted Securities:Securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer are considered restricted as to disposition under federal securities law (‘restricted securities”). Such restricted securities are valued pursuant to the valuation procedures noted above. Restricted securities that would otherwise be considered illiquid investments pursuant to the Fund’s LRMP because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. Therefore, these Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act of 1933, may be classified higher than “Illiquid” under the LRMP (i.e. “moderately liquid” or “less liquid” investments). However, the liquidity of the Fund’s investments in restricted securities could be impaired if trading does not develop or declines.
Swap Agreements:The Fund may enter into certain types of swap agreements detailed in the disclosures below. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Swap agreements are negotiated in the OTC market and may be executed either directly with counterparty(“OTC-traded”) or through a central clearing facility, such as a registered exchange. Swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation (depreciation) on swap agreements. Centrally cleared swaps pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the swap contract. Any upfront premiums paid and received are shown as swap premiums paid and swap premiums received in the Statement of Assets and Liabilities. Risk of loss may exceed amounts recognized on the Statement of Assets and Liabilities. Swap agreements outstanding at period end, if any, are listed on the Schedule of Investments.
36 |
Interest Rate Swaps:Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. The Fund used interest rate swaps to maintain its ability to generate steady cash flow by receiving a stream of fixed-rate payments and to increase exposure to prevailing market rates by receiving floating rate payments. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net present value of the cash flows to be received from the counterparty over the contract’s remaining life.
Securities Transactions and Net Investment Income:Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on theex-date, or for certain foreign securities, when the Fund becomes aware of such dividends. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual.
Taxes:It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions:The Fund expects to declare dividends of its net investment income daily and pay such dividends monthly. Distributions of net realized capital and currency gains, if any, are declared and paid at least annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on theex-date. Permanent book/ tax differences relating to income and gain (loss) are reclassified amongst total distributable earnings (loss) andpaid-in capital in excess of par, as appropriate.
Estimates:The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
2. Agreements
Pursuant to a management agreement with the Trust on behalf of the Fund (the Management Agreement), PGIM Investments LLC (“PGIM Investments”), subject to the supervision of the Board and in conformity with the stated policies of the Fund, manages both the investment operations of the Fund and the composition of the Fund’s portfolio, including the purchase, retention and disposition of assets. In connection therewith, the
PGIM Ultra Short Bond ETF | 37 |
Notes to Financial Statements (unaudited) (continued)
Manager is obligated to keep certain books and records of the Fund. The Manager is authorized to enter into subadvisory agreements for investment advisory services in connection with the management of the Fund. The Manager will continue to have responsibility for all investment advisory services performed pursuant to any such subadvisory agreements. PGIM Investments will review the performance of the investment subadviser(s) and make recommendations to the Board with respect to the retention of investment subadvisers and the renewal of contracts. The Manager also administers the Fund’s business affairs and, in connection therewith, furnishes the Fund with office facilities, together with those ordinary clerical and bookkeeping services which are not being furnished by the Fund’s custodian (the Custodian). The management services of PGIM Investments to the Fund are not exclusive under the terms of the Management Agreement and PGIM Investments is free to, and does, render management services to others.
The Board of Trustees of the Trust has approved a unitary management fee structure for the Fund. Under the unitary fee structure, the Manager is responsible for paying substantially all the expenses of the Fund, costs of borrowing money (including interest expenses and any loan commitment or other associated fees), taxes, acquired fund fees and expenses, brokerage fees, costs of holding shareholder meetings, litigation, indemnification and extraordinary expenses.
The unitary fee paid to the Manager is accrued daily and payable monthly, at an annual rate of 0.15% of the Fund’s average daily net assets. The Manager has agreed to waive a portion of its annual fee equal to the amount of the management fee received by the subadvisor due to the Fund’s investment in the PGIM Institutional Money Market Fund.
The Manager has entered into a subadvisory agreement (Subadvisory Agreement) with PGIM, Inc., the Fund’s investment subadviser (the “subadviser”), which provides subadvisory services to the Fund through its PGIM Fixed Income unit. The Subadvisory Agreement provides that the subadviser will furnish investment advisory services in connection with the management of the Fund. In connection therewith, the subadviser is obligated to keep certain books and records of the Fund. Under the Subadvisory Agreement, the subadviser, subject to the supervision of PGIM Investments, is responsible for managing the assets of the Fund in accordance with the Fund’s investment objectives, policies and restrictions. The subadviser determines what securities and other instruments are purchased and sold for the Fund and is responsible for obtaining and evaluating financial data relevant to the Fund. PGIM Investments continues to have responsibility for all investment advisory services pursuant to the Management Agreement and supervises the subadviser’s performance of such services.
Brown Brothers Harriman & Co. (“BBH”) serves as the Custodian, Transfer Agent and Administrative Agent for the Trust. Pursuant to a Custodian Agreement, BBH maintains
38 |
certain financial accounting books and records pursuant to an agreement with the Trust. Subcustodians provide custodial services for anynon-US assets held outside the United States. Pursuant to an Administrative and Transfer Agency Agreement, BBH maintains certain books and records and provides transfer agency, administrative, legal, tax support and accounting and financial reporting services for the maintenance and operations of the Trust. As the transfer and dividend disbursing agent of the Trust, BBH provides customary transfer agency services to the Trust, including the handling of shareholder communications, the processing of shareholder transactions, the maintenance of shareholder account records, the payment of dividends and distributions, and related functions. For these services, BBH receives compensation from the Manager and is reimbursed for expenses, including custodian and administration fees and certainout-of-pocket expenses including, but not limited to, postage, stationery, printing, allocable communication expenses and other costs. The Manager is responsible for compensating BBH under the Custodian and Administrative and Transfer Agency Agreements.
3. Other Transactions with Affiliates
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule17a-7 procedures. Rule17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Pursuant to the Rule17a-7 procedures and consistent with guidance issued by the SEC, the Fund’s Chief Compliance Officer (“CCO”) prepares a quarterly summary of all such transactions for submission to the Board, together with the CCO’s written representation that all such17a-7 transactions were effected in accordance with the Fund’s Rule17a-7 procedures. Any17a-7 transactions for the reporting period are disclosed in the “Portfolio Securities” note, below.
The Fund may invest its overnight sweep cash in the PGIM Institutional Money Market Fund (the “Money Market Fund”), registered under the 1940 Act and managed by PGIM Investments. Through the Fund’s investments in the mentioned underlying fund, PGIM Investments and/or its affiliates are paid fees or compensated for providing their services. Earnings from the Money Market Fund are disclosed on the Statement of Operations as “Affiliated dividend income”.
Prudential Investment Management Services LLC (“PIMS” or the “Distributor”), acts as the distributor of the Fund. The Distributor is a subsidiary of Prudential Financial, Inc. (“Prudential”), pursuant to the terms of a distribution agreement (“Distribution Agreement”) between the Trust and the Distributor. Shares are continuously offered for sale by the Distributor only. Although the Distributor does not receive any fees under the Distribution Agreement, the Manager or its affiliates may pay the Distributor for certain distribution related services.
PGIM Ultra Short Bond ETF | 39 |
Notes to Financial Statements (unaudited) (continued)
4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short- term investments and U.S. Government securities) for the period ended February 28, 2019, were $141,947,730 and $42,104,011 respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the period ended February 28, 2019, is presented as follows:
Value Beginning | Cost of | Proceeds | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End | Shares, End of Period | Dividend | |||||||
PGIM Institutional Money Market Fund | ||||||||||||||
$37,013 | $41,556,586 | $(41,579,011) | $64 | $(598) | $14,054 | 14,050 | $9,226 |
* | The Fund did not have any capital gain distributions during the reporting period. |
For the reporting period ended February 28, 2019, no17a-7 transactions were entered into by the Fund.
5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of February 28, 2019 were as follows:
Tax Basis | $ | 234,864,433 | ||
|
| |||
Gross Unrealized Appreciation | 290,338 | |||
Gross Unrealized Depreciation | (347,692 | ) | ||
|
| |||
Net Unrealized Depreciation | $ | (57,354 | ) | |
|
|
The book basis may differ from tax basis due to certaintax-related adjustments.
For federal income tax purposes, the Fund had a capital loss carryforward as of August 31, 2018 of approximately $12,000 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
The Manager has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
40 |
6. Capital and Ownership
The Fund is an exchange-traded fund, commonly known as an “ETF”. Individual shares of the Fund may only be purchased and sold in secondary market transactions through brokers or other financial intermediaries. Shares of the Fund are listed for trading on the NYSE Arca, Inc. (the “Exchange”), and because the shares of the Fund trade at market prices rather than NAV, shares of the Fund may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue and redeem its shares at NAV only in a large specified number of shares called a “Creation Unit” or multiples thereof to investors who have entered into an agreement with the Distributor and are authorized to transact with the Trust in Creation Units (“Authorized Participants”). A Creation Unit consists of 25,000 shares of the Fund. The Fund generally issues and redeems Creation Units in return for a specified amount of cash and/ or designated portfolio of securities. Except when aggregated in Creation Units, shares are not individually redeemable. Authorized Participants transacting in Creation Units includingnon-standard orders and whole or partial cash purchases or redemptions may also pay variable transaction fees to compensate the Fund for certain transaction costs (e.g. brokerage costs) relating to investing in portfolio securities. Such variable transaction fees, if any, are currently being waived by the Fund. In addition, fixed transaction fees are imposed for the transfer and other costs associated with the creation or redemption of Creation Units. Authorized Participants are responsible for paying these fixed transaction fees to BBH. As of February 28, 2019, these fixed transaction fees are being paid by PGIM Investments. For the period ended February 28, 2019 PGIM Investments paid $38,000 of fixed transaction fees to BBH.
The Trust is authorized to issue an unlimited number of shares of beneficial interest, $0.001 par value per share.
As of February 28, 2019, Prudential, through its affiliate entities, including affiliated funds, owned 500,000 shares of the Fund.
At reporting period end, four shareholders of record, each holding greater than 5% of the Fund, held 70% of the Fund’s outstanding shares on behalf of multiple beneficial owners, of which 11% were held by an affiliate of Prudential.
Transactions in shares of beneficial interest were as follows:
Period ended February 28, 2019:
Shares | Amount | |||||||
Shares sold | 3,775,000 | $ | 188,760,208 | |||||
Shares reacquired | (200,000 | ) | (9,999,280 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 3,575,000 | 178,760,928 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 3,575,000 | $ | 178,760,928 | |||||
|
|
|
|
PGIM Ultra Short Bond ETF | 41 |
Notes to Financial Statements (unaudited) (continued)
7. Borrowings
The Trust, on behalf of the Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 4, 2018 through October 3, 2019. The Funds pay an annualized commitment fee of 0.15% of the unused portion of the SCA. The Fund’s portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. The interest on borrowings under the SCA is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the1-month LIBOR rate or (3) zero percent.
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Funds in the SCA equitably.
The Fund did not utilize the SCA during the period ended February 28, 2019.
8. Risk of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below:
Authorized Participant Concentration Risk:Only an Authorized Participants may engage in creation or redemption transactions directly with the Fund. The Fund has a limited number of intermediaries that act as Authorized Participants and none of these Authorized Participants is or will be obligated to engage in creation or redemption transactions. To the extent that these intermediaries exit the business or are unable to or choose not to proceed with creation and/ or redemption orders with respect to the Fund and no other Authorized Participants creates or redeems, shares of the Fund may trade at a substantial discount or premium to NAV, may trade at larger spreads and possibly face trading halts and/or delisting.
Bond Obligations Risk:The Fund’s holdings, share price, yield and total return may fluctuate in response to bond market movements. The value of bonds may decline for issuer-related reasons, including management performance, financial leverage and reduced demand for the issuer’s goods and services. Certain types of fixed-income
42 |
obligations also may be subject to “call and redemption risk”, which is the risk that the issuer may call a bond held by the Fund for redemption before it matures and the Fund may not be able to reinvest at the same level and therefore would earn less income.
ETF Shares Trading Risk:Fund shares are listed for trading on the Exchange and the shares are bought and sold in the secondary market at market prices. The market prices of the shares of the Fund are expected to fluctuate in response to changes in the Fund’s NAV, the intraday value of the Fund’s holdings and supply and demand for shares of the Fund. We cannot predict whether shares of the Fund will trade above, below or at their NAV. Trading on the Exchange, including trading of Fund shares, may be halted in certain circumstances and shareholders may not be able to sell Fund shares at the time or price desired. During periods of stressed market conditions, the market for the shares of the Fund may become less liquid in response to deteriorating liquidity in the markets for the Fund’s portfolio investments. This adverse effect on the liquidity of the Fund’s shares could lead to differences between the market price of the Fund’s shares and the NAV of those shares. There can be no assurance that the requirements of the Exchange to maintain the listing of shares of the Fund will continue to be met. At times, trading in the securities of ETFs has become volatile and unpredictable and the price of ETF shares has diverged from market driven fundamentals. Since the Fund is new, an active secondary market for the shares of the Fund may not develop or may not continue once developed.
Interest Rate Risk:The value of an investment may go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration securities. When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Fund may be required to reinvest the proceeds at a lower interest rate. This is referred to as “prepayment risk”. When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the Fund’s holdings may fall sharply. This is referred to as “extension risk”. The Fund may face a heightened level of interest rate risk as a result of the U.S. Federal Reserve Board’s policies. The Fund’s investments may lose value if short-term or long- term interest rates rise sharply or in a manner not anticipated by the subadviser.
Liquidity Risk:The Fund may invest in instruments that trade in lower volumes and are less liquid than other investments. Liquidity risk exists when particular investments made by the Fund are difficult to purchase or sell. Liquidity risk includes the risk that the Fund may make investments that may become less liquid in response to market developments or adverse investor perceptions. Investments that are illiquid or that trade in lower volumes may be more difficult to value. If the Fund is forced to sell these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments may not reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, the Fund may incur higher transaction costs when executing trade orders of a given size. The reduction in dealer market-making capacity in the fixed-income markets that has occurred in recent
PGIM Ultra Short Bond ETF | 43 |
Notes to Financial Statements (unaudited) (continued)
years also has the potential to reduce liquidity. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Market and Credit Risk:Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of an investment in the Fund will decline. Additionally, the Fund may also be exposed to credit risk in the event that an issuer or guarantor fails to perform or that an institution or entity with which the Fund has unsettled or open transactions defaults.
Derivatives Risk:Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Fund will depend on the subadviser’s ability to analyze and manage derivatives transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” and therefore may magnify or otherwise increase investment losses to the Fund. The Fund’s use of derivatives may also increase the amount of taxes payable by shareholders. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Fund’s derivatives positions. In fact, manyover-the-counter derivative instruments will not have liquidity beyond the counterparty to the instrument.Over-the-counter derivative instruments also involve the risk that the other party will not meet its obligations to the Fund.
9. Recent Accounting Pronouncements and Reporting Updates
In August 2018, the Securities and Exchange Commission (the “SEC”) adopted amendments to RegulationS-X to update and simplify the disclosure requirements for registered investment companies by eliminating requirements that are redundant or duplicative of US GAAP requirements or other SEC disclosure requirements. The new amendments require the presentation of the total, rather than the components, of distributable earnings on the Statement of Assets and Liabilities and the total, rather than the components, of dividends from net investment income and distributions from net realized gains on the Statements of Changes in Net Assets. The amendments also removed the requirement for the parenthetical disclosure of undistributed net investment income on the Statements of Changes in Net Assets and certain tax adjustments that were reflected in the Notes to Financial Statements. All of these have been reflected in the Fund’s financial statements.
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In August 2018, the FASB issued Accounting Standards Update (“ASU”)No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the Fund’s policy for the timing of transfers between levels. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Manager has evaluated the implications of certain provisions of the ASU and has determined to early adopt aspects related to the removal and modification of certain fair value measurement disclosures under the ASU effective immediately. At this time, the Manager is evaluating the implications of certain other provisions of the ASU related to new disclosure requirements and any impact on the financial statement disclosures has not yet been determined.
PGIM Ultra Short Bond ETF | 45 |
Financial Highlights(unaudited)
Six Months February 28, | April 5, through 2018 | |||||||||||
Per Share Operating Performance(a): | ||||||||||||
Net Asset Value, Beginning of Period | $50.12 | $50.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | 0.70 | 0.53 | ||||||||||
Net realized and unrealized gain (loss) on investments | (0.07 | ) | 0.01 | |||||||||
Total from investment operations | 0.63 | 0.54 | ||||||||||
Less Dividends and Distributions: | ||||||||||||
Dividends from net investment income | (0.65 | ) | (0.42 | ) | ||||||||
Net asset value, end of period | $50.10 | $50.12 | ||||||||||
Total Return(b): | 1.26% | 1.08% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||
Net assets, end of period (000) | $231,698 | $52,627 | ||||||||||
Average net assets (000) | $131,598 | $33,209 | ||||||||||
Ratios to average net assets(c): | ||||||||||||
Expenses after waivers and/or expense reimbursement | 0.15% | (d) | 0.15% | (d) | ||||||||
Expenses before waivers and/or expense reimbursement | 0.15% | (d) | 0.15% | (d) | ||||||||
Net investment income (loss) | 2.84% | (d) | 2.58% | (d) | ||||||||
Portfolio turnover rate | 55% | (f) | 145% | (f) |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of the period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Annualized. |
(e) | Commencement of operations. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
46 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgiminvestments.com |
PROXY VOTING |
The Board of Trustees of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
TRUSTEES |
Ellen S. Alberding• Kevin J. Bannon• Scott E. Benjamin• Linda W. Bynoe• Barry H. Evans• Keith F. Hartstein• Laurie Simon Hodrick• Michael S. Hyland• Stuart S. Parker• Brian K. Reid• Grace C. Torres |
OFFICERS |
Stuart S. Parker,President•Scott E. Benjamin,Vice President • Christian J. Kelly,Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara,Chief Legal Officer • Chad A. Earnst,Chief Compliance Officer • Dino Capasso,Deputy Chief Compliance Officer • Charles H. Smith,Anti-Money Laundering Compliance Officer • Andrew R. French,Secretary • Jonathan D. Shain,Assistant Secretary • Claudia DiGiacomo,Assistant Secretary • Diana N. Huffman,Assistant Secretary •Peter Parrella,Assistant Treasurer • Lana Lomuti,Assistant Treasurer • Linda McMullin,Assistant Treasurer • Kelly A. Coyne,Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISER | PGIM Fixed Income | 655 Broad Street Newark, NJ 07102 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN/TRANSFER AGENT | Brown Brothers Harriman & Co. | 50 Post Office Square Boston, MA 02110 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website atpgiminvestments.com or by calling(800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your fund documents online, go topgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, PGIM Ultra Short Bond ETF, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’sForms N-Q are available on the Commission’s website atsec.gov. Beginning with reporting periods on or after March 31, 2019, FormN-PORT will replace FormN-Q. FormN-PORT will be filed with the Securities and Exchange Commission quarterly, and each Fund’s full portfolio holdings as of its first and third quarters of each fiscal year will be made publicly available 60 days after the end of each quarter. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the month. |
Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM ULTRA SHORT BOND ETF
TICKER SYMBOL | PULS |
ETF1000E2
PGIM ACTIVE HIGH YIELD BOND ETF (NYSE Arca: PHYL)
SEMIANNUAL REPORT
FEBRUARY 28, 2019
COMING SOON: PAPERLESS SHAREHOLDER REPORTS
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (pgiminvestments.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank).
You may elect to receive all future reports in paper free of charge. You should contact your financial intermediary or follow instructions included with this notice to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account.
To enroll in e-delivery, go to pgiminvestments.com/edelivery
Objective:Total return through a combination of current income and capital appreciation |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of February 28, 2019 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Exchange-traded funds are distributed by Prudential Investment Management Services LLC (PIMS), member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies.© 2019 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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PGIM Active High Yield Bond ETF | 3 |
This Page Intentionally Left Blank
Dear Shareholder:
We hope you find the semiannual report for PGIM Active High Yield Bond ETF informative and useful. The report covers performance for the reporting period that began September 24, 2018 (the Fund’s inception), and ended February 28, 2019.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Active High Yield Bond ETF
April 15, 2019
PGIM Active High Yield Bond ETF | 5 |
Your Fund’s Performance(unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website atpgiminvestments.com or by calling(800) 225-1852.
Total Returns as of 2/28/19 | ||
Since Inception (%) | ||
Net Asset Value (NAV) | 2.22 (9/24/18) | |
Market Price* | 2.57 (9/24/18) | |
Bloomberg Barclays US High Yield Very Liquid Index | 1.91 | |
Lipper High Yield Funds Average | 0.91 |
Source: PGIM Investments LLC and Lipper Inc.
*The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated. The first day of secondary market trading is typically several days after the date on which the Fund commenced investment operations; therefore, the NAV of the Fund is used as a proxy for the period from inception of investment operations to the first day of secondary market trading to calculate the market price returns.
Since inception returns for the Index and the Lipper Average are measured from the closest month-end to the Fund’s inception date.
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption or sale of Fund shares.
Market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions, if any, have been reinvested in the Fund at market price and NAV, respectively.
Benchmark Definitions
Bloomberg Barclays US High Yield Very Liquid Index (VLI)—The Bloomberg Barclays US High Yield Very Liquid Index is a component of the US Corporate High Yield Index that is designed to track a more liquid component of the USD-denominated, high yield, fixed rate corporate bond market. The US High Yield VLI uses the same eligibility criteria as the US Corporate High Yield Index, but includes only the three largest bonds from each issuer that have a minimum amount outstanding of USD500mn and less than five years from issue date. The Index also limits the exposure of each issuer to 2% of the total market value and redistributes any excess market value index-wide on a pro rata basis.
Lipper High Yield Funds Average—The Lipper High Yield Funds Average (Lipper Average) is based on the average return of all funds in the Lipper High Yield Funds universe for the periods noted. Funds in the Lipper Average aim at high (relative) current yield from fixed income securities, have no quality or maturity restrictions, and tend to invest in lower-grade debt issues.
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Investors cannot invest directly in an index or average. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses of a mutual fund, but not sales charges or taxes.
Credit Quality expressed as a percentage of total investments as of 2/28/19 (%) | ||||
AAA | 2.8 | |||
BBB | 6.3 | |||
BB | 37.3 | |||
B | 40.8 | |||
CCC | 11.1 | |||
CC | 0.5 | |||
Cash/Cash Equivalents | 1.2 | |||
Total Investments | 100.0 |
Source: PGIM Fixed Income
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. Credit ratings are subject to change. Values may not sum to 100% due to rounding.
Distributions and Yields as of 2/28/19 | ||||||
Total Dividends Paid Since Inception ($) | SEC 30-Day Subsidized Yield* (%) | SEC 30-Day Unsubsidized Yield** (%) | ||||
0.90 | 6.38 | 6.38 |
*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s net expenses (net of any expense waivers or reimbursements). The investor experience is represented by the SEC 30-Day Subsidized Yield.
**SEC 30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s gross expenses. The investor experience is represented by the SEC 30-Day Subsidized Yield.
PGIM Active High Yield Bond ETF | 7 |
As a shareholder of the Fund, you incur ongoing costs, including investment management fees. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The example is based on an investment of $1,000 held through the period ended February 28, 2019. The example is for illustrative purposes only.
Actual Expenses
The information under each column in the line entitled “Actual” on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information under each column in the line entitled “Hypothetical” on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, brokerage commissions paid on purchases and sales of Fund shares. Therefore, the ending account values and expenses paid for the period are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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PGIM Active High Yield Bond ETF | Beginning Account Value September 1, 2018 | Ending Account Value February 28, 2019 | Annualized Expense Ratio based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Actual** Hypothetical | $ $ | 1,000.00 1,000.00 |
| $ $ | 1,022.20 1,022.22 |
| | 0.52 0.52 | % % | $ $ | 2.26 2.61 |
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* Fund expenses (net of fee waivers or subsidies, if any) are equal to the annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended February 28, 2019, and divided by the 365 days in the Fund’s fiscal year ending August 31, 2019 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
** “Actual” expenses are calculated using the 157-day period ended February 28, 2019 due to the Fund’s inception date of September 24, 2018.
PGIM Active High Yield Bond ETF | 9 |
Schedule of Investments(unaudited)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
LONG-TERM INVESTMENTS 95.8% |
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ASSET-BACKED SECURITIES 2.6% |
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Collateralized Loan Obligations 2.6% | ||||||||||||||||
Adams Mill CLO Ltd. (Cayman Islands), Series2014-1A, Class A1R, 144A, 3 Month LIBOR + 1.100% | 3.887 | %(c) | 07/15/26 | 217 | $ | 216,278 | ||||||||||
Man GLG US CLO Ltd. (Cayman Islands), Series2018-2A, Class A1R, 144A, 3 Month LIBOR + 1.240% | 4.027 | (c) | 10/15/28 | 250 | 249,197 | |||||||||||
Zais CLO 8 Ltd. (Cayman Islands), Series2018-1A, Class A, 144A, 3 Month LIBOR + 0.950% | 3.737 | (c) | 04/15/29 | 250 | 247,118 | |||||||||||
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TOTAL ASSET-BACKED SECURITIES | 712,593 | |||||||||||||||
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BANK LOANS 1.9% | ||||||||||||||||
Infrastructure Software 1.8% | ||||||||||||||||
McAfee, LLC, | ||||||||||||||||
Initial Loan (Second Lien), 1 Month LIBOR + 8.500% | 10.993 | (c) | 09/29/25 | 229 | 231,745 | |||||||||||
Term B USD Loan, 1 Month LIBOR + 3.750% | 6.243 | (c) | 09/30/24 | 246 | 246,345 | |||||||||||
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478,090 | ||||||||||||||||
Oil & Gas 0.1% | ||||||||||||||||
CITGO Petroleum Corp., Term B Loan, 1 Month | 0.000 | (c)(p) | 07/29/21 | 25 | 24,375 | |||||||||||
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TOTAL BANK LOANS | 502,465 | |||||||||||||||
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CORPORATE BONDS 91.3% | ||||||||||||||||
Aerospace & Defense 2.9% | ||||||||||||||||
Bombardier, Inc. (Canada), | ||||||||||||||||
Sr. Unsec’d. Notes | 7.875 | 04/15/27 | 75 | 74,435 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.500 | 03/15/25 | 75 | 75,656 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.750 | 12/01/21 | 75 | 82,500 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.500 | 12/01/24 | 375 | 381,562 | ||||||||||||
TransDigm, Inc., | ||||||||||||||||
Gtd. Notes | 6.500 | 05/15/25 | 100 | 99,625 | ||||||||||||
Gtd. Notes | 6.375 | 06/15/26 | 75 | 72,844 | ||||||||||||
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786,622 | ||||||||||||||||
Agriculture 0.2% | ||||||||||||||||
Vector Group Ltd., Sr. Sec’d. Notes, 144A | 6.125 | 02/01/25 | 75 | 66,375 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 11 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
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Auto Manufacturers 1.6% | ||||||||||||||||
Allison Transmission, Inc., Sr. Unsec’d. Notes, 144A | 4.750 | % | 10/01/27 | 75 | $ | 71,813 | ||||||||||
Ford Motor Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 01/15/43 | 25 | 19,135 | ||||||||||||
Sr. Unsec’d. Notes | 5.291 | 12/08/46 | 125 | 100,873 | ||||||||||||
General Motors Co., Sr. Unsec’d. Notes | 5.000 | 10/01/28 | 75 | 73,486 | ||||||||||||
JB Poindexter & Co., Inc., Sr. Unsec’d. Notes, 144A | 7.125 | 04/15/26 | 25 | 24,563 | ||||||||||||
Navistar International Corp., Gtd. Notes, 144A | 6.625 | 11/01/25 | 125 | 128,879 | ||||||||||||
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418,749 | ||||||||||||||||
Auto Parts & Equipment 1.4% | ||||||||||||||||
American Axle & Manufacturing, Inc., | ||||||||||||||||
Gtd. Notes | 6.500 | 04/01/27 | 50 | 49,375 | ||||||||||||
Gtd. Notes | 6.250 | 03/15/26 | 125 | 122,163 | ||||||||||||
Cooper-Standard Automotive, Inc., Gtd. Notes, 144A | 5.625 | 11/15/26 | 50 | 44,812 | ||||||||||||
Dana Financing Luxembourg Sarl (Luxembourg), | 6.500 | 06/01/26 | 100 | 102,000 | ||||||||||||
Titan International, Inc., Sr. Sec’d. Notes | 6.500 | 11/30/23 | 50 | 46,625 | ||||||||||||
|
| |||||||||||||||
364,975 | ||||||||||||||||
Banks 0.3% | ||||||||||||||||
CIT Group, Inc., Subordinated | 6.125 | 03/09/28 | 75 | 81,375 | ||||||||||||
Beverages 0.3% | ||||||||||||||||
Cott Holdings, Inc., Gtd. Notes, 144A | 5.500 | 04/01/25 | 75 | 74,063 | ||||||||||||
Building Materials 2.3% | ||||||||||||||||
Griffon Corp., Gtd. Notes | 5.250 | 03/01/22 | 125 | 123,437 | ||||||||||||
Masonite International Corp. (Canada), Gtd. Notes, 144A | 5.750 | 09/15/26 | 75 | 75,000 | ||||||||||||
NCI Building Systems, Inc., Gtd. Notes, 144A | 8.000 | 04/15/26 | 75 | 70,781 | ||||||||||||
Standard Industries, Inc., Sr. Unsec’d. Notes, 144A | 4.750 | 01/15/28 | 125 | 116,875 | ||||||||||||
Summit Materials LLC/Summit Materials Finance Corp., | ||||||||||||||||
Gtd. Notes | 6.500 | 03/15/27 | 20 | 20,000 | ||||||||||||
Gtd. Notes, 144A | 5.125 | 06/01/25 | 75 | 71,625 | ||||||||||||
US Concrete, Inc., Gtd. Notes | 6.375 | 06/01/24 | 150 | 147,750 | ||||||||||||
|
| |||||||||||||||
625,468 | ||||||||||||||||
Chemicals 5% | ||||||||||||||||
Alpha 2 BV (Netherlands), Sr. Unsec’d. Notes, Cash coupon 8.750% or PIK 9.500%, 144A | 8.750 | 06/01/23 | 200 | 191,500 | ||||||||||||
Ashland LLC, Gtd. Notes | 6.875 | 05/15/43 | 100 | 102,000 | ||||||||||||
Chemours Co. (The), | ||||||||||||||||
Gtd. Notes | 7.000 | 05/15/25 | 25 | 26,062 | ||||||||||||
Gtd. Notes | 5.375 | 05/15/27 | 15 | 14,550 |
See Notes to Financial Statements.
12 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Chemicals (cont’d.) | ||||||||||||||||
NOVA Chemicals Corp. (Canada), Sr. Unsec’d. Notes, 144A | 5.250 | % | 06/01/27 | 315 | $ | 296,100 | ||||||||||
Rain CII Carbon LLC/CII Carbon Corp., Sec’d. Notes, 144A | 7.250 | 04/01/25 | 125 | 108,125 | ||||||||||||
Starfruit Finco BV/Starfruit US Holdco LLC (Netherlands), Sr. Unsec’d. Notes, 144A | 8.000 | 10/01/26 | 300 | 297,750 | ||||||||||||
TPC Group, Inc., Sr. Sec’d. Notes, 144A | 8.750 | 12/15/20 | 100 | 98,000 | ||||||||||||
Tronox Finance PLC (United Kingdom), Gtd. Notes, 144A | 5.750 | 10/01/25 | 45 | 41,850 | ||||||||||||
Tronox, Inc., Gtd. Notes, 144A | 6.500 | 04/15/26 | 75 | 70,969 | ||||||||||||
Venator Finance Sarl/Venator Materials LLC, | 5.750 | 07/15/25 | 125 | 110,000 | ||||||||||||
|
| |||||||||||||||
1,356,906 | ||||||||||||||||
Coal 0.2% | ||||||||||||||||
Warrior Met Coal, Inc., Sr. Sec’d. Notes, 144A | 8.000 | 11/01/24 | 50 | 51,500 | ||||||||||||
Commercial Services 4.7% | ||||||||||||||||
Laureate Education, Inc., Gtd. Notes, 144A | 8.250 | 05/01/25 | 165 | 178,200 | ||||||||||||
Nielsen Finance LLC/Nielsen Finance Co., | 5.000 | 04/15/22 | 65 | 64,837 | ||||||||||||
Refinitiv US Holdings, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 8.250 | 11/15/26 | 235 | 229,933 | ||||||||||||
Sr. Sec’d. Notes, 144A | 6.250 | 05/15/26 | 130 | 131,137 | ||||||||||||
United Rentals North America, Inc., | ||||||||||||||||
Gtd. Notes | 5.875 | 09/15/26 | 75 | 76,687 | ||||||||||||
Gtd. Notes | 5.500 | 05/15/27 | 50 | 50,000 | ||||||||||||
Gtd. Notes | 4.875 | 01/15/28 | 400 | 381,500 | ||||||||||||
Gtd. Notes | 4.625 | 10/15/25 | 25 | 24,313 | ||||||||||||
Verscend Escrow Corp., Sr. Unsec’d. Notes, 144A | 9.750 | 08/15/26 | 125 | 127,813 | ||||||||||||
|
| |||||||||||||||
1,264,420 | ||||||||||||||||
Computers 1.9% | ||||||||||||||||
Banff Merger Sub, Inc., Sr. Unsec’d. Notes, 144A | 9.750 | 09/01/26 | 175 | 169,531 | ||||||||||||
Dell International LLC/EMC Corp., Gtd. Notes, 144A | 7.125 | 06/15/24 | 50 | 53,058 | ||||||||||||
Everi Payments, Inc., Gtd. Notes, 144A | 7.500 | 12/15/25 | 125 | 125,000 | ||||||||||||
West Corp., Gtd. Notes, 144A | 8.500 | 10/15/25 | 200 | 165,500 | ||||||||||||
|
| |||||||||||||||
513,089 | ||||||||||||||||
Distribution/Wholesale 0.2% | ||||||||||||||||
Global Partners LP/GLP Finance Corp., Gtd. Notes | 7.000 | 06/15/23 | 25 | 24,719 | ||||||||||||
H&E Equipment Services, Inc., Gtd. Notes | 5.625 | 09/01/25 | 25 | 24,750 | ||||||||||||
|
| |||||||||||||||
49,469 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 13 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Diversified Financial Services 2.4% | ||||||||||||||||
LPL Holdings, Inc., Gtd. Notes, 144A | 5.750 | % | 09/15/25 | 100 | $ | 101,125 | ||||||||||
Nationstar Mortgage Holdings, Inc., Gtd. Notes, 144A | 9.125 | 07/15/26 | 225 | 230,063 | ||||||||||||
Navient Corp., Sr. Unsec’d. Notes | 7.250 | 09/25/23 | 75 | 77,344 | ||||||||||||
Springleaf Finance Corp., | ||||||||||||||||
Gtd. Notes | 6.875 | 03/15/25 | 75 | 76,781 | ||||||||||||
Gtd. Notes | 7.125 | 03/15/26 | 125 | 126,563 | ||||||||||||
VFH Parent LLC/Orchestra Co.-Issuer, Inc., Sec’d. | 6.750 | 06/15/22 | 25 | 25,647 | ||||||||||||
|
| |||||||||||||||
637,523 | ||||||||||||||||
Electric 3.8% | ||||||||||||||||
Calpine Corp., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 5.250 | 06/01/26 | 75 | 73,500 | ||||||||||||
Sr. Unsec’d. Notes | 5.750 | 01/15/25 | 475 | 454,812 | ||||||||||||
NRG Energy, Inc., | ||||||||||||||||
Gtd. Notes | 6.625 | 01/15/27 | 50 | 53,172 | ||||||||||||
Gtd. Notes | 5.750 | 01/15/28 | 125 | 128,281 | ||||||||||||
Vistra Operations Co. LLC, | ||||||||||||||||
Gtd. Notes, 144A | 5.500 | 09/01/26 | 150 | 155,625 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.625 | 02/15/27 | 150 | 154,500 | ||||||||||||
|
| |||||||||||||||
1,019,890 | ||||||||||||||||
Electronics 0.3% | ||||||||||||||||
Sensata Technologies BV (Netherlands), | 5.000 | 10/01/25 | 75 | 75,750 | ||||||||||||
Engineering & Construction 0.8% | ||||||||||||||||
AECOM, Gtd. Notes | 5.125 | 03/15/27 | 100 | 94,875 | ||||||||||||
StandardAero Aviation Holdings, Inc., Gtd. Notes, 144A | 10.000 | 07/15/23 | 25 | 26,937 | ||||||||||||
TopBuild Corp., Gtd. Notes, 144A | 5.625 | 05/01/26 | 100 | 96,375 | ||||||||||||
|
| |||||||||||||||
218,187 | ||||||||||||||||
Entertainment 3.8% | ||||||||||||||||
AMC Entertainment Holdings, Inc., Gtd. Notes | 5.875 | 11/15/26 | 125 | 112,513 | ||||||||||||
Caesars Resort Collection LLC/CRC Finco, Inc., Gtd. Notes, 144A | 5.250 | 10/15/25 | 225 | 213,469 | ||||||||||||
Churchill Downs, Inc., Gtd. Notes, 144A | 4.750 | 01/15/28 | 100 | 95,520 | ||||||||||||
Jacobs Entertainment, Inc., Sec’d. Notes, 144A | 7.875 | 02/01/24 | 125 | 130,937 | ||||||||||||
National CineMedia LLC, Sr. Sec’d. Notes | 6.000 | 04/15/22 | 25 | 25,279 | ||||||||||||
Penn National Gaming, Inc., Sr. Unsec’d. Notes, 144A | 5.625 | 01/15/27 | 150 | 143,343 |
See Notes to Financial Statements.
14 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) |
| |||||||||||||||
Entertainment (cont’d.) | ||||||||||||||||
Scientific Games International, Inc., | ||||||||||||||||
Gtd. Notes | 6.250 | % | 09/01/20 | 25 | $ | 25,000 | ||||||||||
Gtd. Notes | 10.000 | 12/01/22 | 75 | 78,844 | ||||||||||||
Gtd. Notes | 6.625 | 05/15/21 | 125 | 126,250 | ||||||||||||
Sr. Sec’d. Notes, 144A | 5.000 | 10/15/25 | 75 | 72,656 | ||||||||||||
|
| |||||||||||||||
1,023,811 | ||||||||||||||||
Environmental Control 0.1% | ||||||||||||||||
Advanced Disposal Services, Inc., Gtd. Notes, 144A | 5.625 | 11/15/24 | 25 | 25,250 | ||||||||||||
Food 2.5% | ||||||||||||||||
Albertsons Cos. LLC/Safeway, Inc./New Albertsons LP/Albertson’s LLC, Gtd. Notes | 5.750 | 03/15/25 | 50 | 47,500 | ||||||||||||
B&G Foods, Inc., Gtd. Notes | 5.250 | 04/01/25 | 75 | 71,625 | ||||||||||||
JBS USA LUX SA/JBS USA Finance, Inc., Gtd. Notes, 144A | 5.750 | 06/15/25 | 225 | 227,813 | ||||||||||||
Pilgrim’s Pride Corp., Gtd. Notes, 144A | 5.875 | 09/30/27 | 150 | 147,375 | ||||||||||||
Post Holdings, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.000 | 08/15/26 | 50 | 48,062 | ||||||||||||
Gtd. Notes, 144A | 5.625 | 01/15/28 | 150 | 144,938 | ||||||||||||
|
| |||||||||||||||
687,313 | ||||||||||||||||
Gas 0.6% | ||||||||||||||||
AmeriGas Partners LP/AmeriGas Finance Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.500 | 05/20/25 | 125 | 123,750 | ||||||||||||
Sr. Unsec’d. Notes | 5.750 | 05/20/27 | 50 | 49,000 | ||||||||||||
|
| |||||||||||||||
172,750 | ||||||||||||||||
Healthcare-Products 0.2% | ||||||||||||||||
Mallinckrodt International Finance SA/Mallinckrodt CB LLC (Luxembourg), Gtd. Notes, 144A | 5.500 | 04/15/25 | 75 | 61,102 | ||||||||||||
Healthcare-Services 5.7% | ||||||||||||||||
Acadia Healthcare Co., Inc., Gtd. Notes | 6.500 | 03/01/24 | 50 | 49,750 | ||||||||||||
CHS/Community Health Systems, Inc., Sr. Sec’d. Notes | 6.250 | 03/31/23 | 100 | 96,250 | ||||||||||||
DaVita, Inc., Gtd. Notes | 5.000 | 05/01/25 | 100 | 96,500 | ||||||||||||
Hadrian Merger Sub, Inc., Sr. Unsec’d. Notes, 144A | 8.500 | 05/01/26 | 75 | 68,813 | ||||||||||||
HCA, Inc., | ||||||||||||||||
Gtd. Notes | 5.375 | 09/01/26 | 375 | 384,375 | ||||||||||||
Gtd. Notes | 5.875 | 02/01/29 | 25 | 26,219 | ||||||||||||
MEDNAX, Inc., Gtd. Notes, 144A | 6.250 | 01/15/27 | 150 | 150,833 | ||||||||||||
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc., Gtd. Notes, 144A | 9.750 | 12/01/26 | 125 | 128,125 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 15 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Healthcare-Services (cont’d.) | ||||||||||||||||
Surgery Center Holdings, Inc., Gtd. Notes, 144A | 6.750 | % | 07/01/25 | 75 | $ | 68,250 | ||||||||||
Tenet Healthcare Corp., | ||||||||||||||||
Sec’d. Notes, 144A | 6.250 | 02/01/27 | 75 | 77,203 | ||||||||||||
Sr. Unsec’d. Notes | 8.125 | 04/01/22 | 175 | 186,813 | ||||||||||||
Sr. Unsec’d. Notes | 6.750 | 06/15/23 | 50 | 51,250 | ||||||||||||
Sr. Unsec’d. Notes | 7.000 | 08/01/25 | 150 | 150,375 | ||||||||||||
|
| |||||||||||||||
1,534,756 | ||||||||||||||||
Home Builders 3.8% | ||||||||||||||||
Ashton Woods USA LLC/Ashton Woods Finance Co., | 6.750 | 08/01/25 | 100 | 90,030 | ||||||||||||
Beazer Homes USA, Inc., | ||||||||||||||||
Gtd. Notes | 6.750 | 03/15/25 | 75 | 69,937 | ||||||||||||
Gtd. Notes | 5.875 | 10/15/27 | 25 | 21,813 | ||||||||||||
Brookfield Residential Properties, Inc. (Canada), | 6.375 | 05/15/25 | 50 | 47,506 | ||||||||||||
Brookfield Residential Properties, Inc./Brookfield Residential US Corp. (Canada), Gtd. Notes, 144A | 6.125 | 07/01/22 | 25 | 24,906 | ||||||||||||
KB Home, Gtd. Notes | 7.000 | 12/15/21 | 75 | 79,312 | ||||||||||||
Lennar Corp., Gtd. Notes | 4.750 | 05/30/25 | 50 | 50,141 | ||||||||||||
Mattamy Group Corp. (Canada), Sr. Unsec’d. Notes, 144A | 6.500 | 10/01/25 | 125 | 120,117 | ||||||||||||
Meritage Homes Corp., Gtd. Notes | 5.125 | 06/06/27 | 125 | 116,563 | ||||||||||||
New Home Co., Inc. (The), Gtd. Notes | 7.250 | 04/01/22 | 50 | 46,031 | ||||||||||||
PulteGroup, Inc., Gtd. Notes | 5.000 | 01/15/27 | 50 | 47,875 | ||||||||||||
Shea Homes LP/Shea Homes Funding Corp., | 5.875 | 04/01/23 | 25 | 24,062 | ||||||||||||
Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc., Gtd. Notes, 144A | 5.625 | 03/01/24 | 125 | 123,437 | ||||||||||||
William Lyon Homes, Inc., Gtd. Notes | 5.875 | 01/31/25 | 175 | 157,500 | ||||||||||||
|
| |||||||||||||||
1,019,230 | ||||||||||||||||
Home Furnishings 0.5% | ||||||||||||||||
Tempur Sealy International, Inc., Gtd. Notes | 5.500 | 06/15/26 | 125 | 124,687 | ||||||||||||
Household Products/Wares 0.3% | ||||||||||||||||
Spectrum Brands, Inc., Gtd. Notes | 5.750 | 07/15/25 | 75 | 73,406 | ||||||||||||
Housewares 0.3% | ||||||||||||||||
ScottsMiracle-Gro Co. (The), Gtd. Notes | 5.250 | 12/15/26 | 75 | 71,625 |
See Notes to Financial Statements.
16 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Internet 0.9% | ||||||||||||||||
Zayo Group LLC/Zayo Capital, Inc., | ||||||||||||||||
Gtd. Notes | 6.375 | % | 05/15/25 | 125 | $ | 124,062 | ||||||||||
Gtd. Notes, 144A | 5.750 | 01/15/27 | 120 | 116,400 | ||||||||||||
|
| |||||||||||||||
240,462 | ||||||||||||||||
Iron/Steel 0.8% | ||||||||||||||||
AK Steel Corp., Gtd. Notes | 7.000 | 03/15/27 | 100 | 84,000 | ||||||||||||
Cleveland-Cliffs, Inc., Gtd. Notes | 5.750 | 03/01/25 | 60 | 58,650 | ||||||||||||
United States Steel Corp., Sr. Unsec’d. Notes | 6.250 | 03/15/26 | 75 | 70,969 | ||||||||||||
|
| |||||||||||||||
213,619 | ||||||||||||||||
Lodging 0.7% | ||||||||||||||||
Boyd Gaming Corp., Gtd. Notes | 6.000 | 08/15/26 | 50 | 51,281 | ||||||||||||
Jack Ohio Finance LLC/Jack Ohio Finance 1 Corp., | 10.250 | 11/15/22 | 100 | 107,750 | ||||||||||||
MGM Resorts International, Gtd. Notes | 5.750 | 06/15/25 | 25 | 25,438 | ||||||||||||
|
| |||||||||||||||
184,469 | ||||||||||||||||
Machinery-Diversified 0.6% | ||||||||||||||||
ATS Automation Tooling Systems, Inc. (Canada), | 6.500 | 06/15/23 | 50 | 51,640 | ||||||||||||
Cloud Crane LLC, Sec’d. Notes, 144A | 10.125 | 08/01/24 | 100 | 106,500 | ||||||||||||
|
| |||||||||||||||
158,140 | ||||||||||||||||
Media 9.4% | ||||||||||||||||
Altice France SA (France), Sr. Sec’d. Notes, 144A | 8.125 | 02/01/27 | 200 | 201,000 | ||||||||||||
AMC Networks, Inc., Gtd. Notes | 4.750 | 08/01/25 | 50 | 48,578 | ||||||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.875 | 05/01/27 | 125 | 128,399 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.000 | 02/01/28 | 230 | 221,231 | ||||||||||||
Clear Channel Worldwide Holdings, Inc., | ||||||||||||||||
Gtd. Notes | 6.500 | 11/15/22 | 175 | 178,719 | ||||||||||||
Gtd. Notes, 144A | 9.250 | 02/15/24 | 215 | 225,481 | ||||||||||||
CSC Holdings LLC, Sr. Unsec’d. Notes, 144A | 7.500 | 04/01/28 | 200 | 211,000 | ||||||||||||
DISH DBS Corp., Gtd. Notes | 7.750 | 07/01/26 | 440 | 380,600 | ||||||||||||
Gray Television, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.875 | 07/15/26 | 65 | 65,650 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.000 | 05/15/27 | 40 | 42,300 | ||||||||||||
Mediacom Broadband LLC/Mediacom Broadband Corp., Sr. Unsec’d. Notes | 5.500 | 04/15/21 | 50 | 49,875 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 17 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Media (cont’d.) | ||||||||||||||||
Midcontinent Communications/Midcontinent Finance Corp., Gtd. Notes, 144A | 6.875 | % | 08/15/23 | 125 | $ | 130,464 | ||||||||||
Nexstar Broadcasting, Inc., Gtd. Notes, 144A | 5.625 | 08/01/24 | 125 | 124,062 | ||||||||||||
Radiate Holdco LLC/Radiate Finance, Inc., Sr. Unsec’d. Notes, 144A | 6.875 | 02/15/23 | 200 | 194,000 | ||||||||||||
Sinclair Television Group, Inc., Gtd. Notes, 144A | 5.625 | 08/01/24 | 125 | 126,094 | ||||||||||||
TEGNA, Inc., Gtd. Notes | 6.375 | 10/15/23 | 25 | 25,812 | ||||||||||||
Univision Communications, Inc., Sr. Sec’d. Notes, 144A | 5.125 | 02/15/25 | 165 | 144,375 | ||||||||||||
Videotron Ltd. (Canada), Gtd. Notes, 144A | 5.125 | 04/15/27 | 50 | 50,750 | ||||||||||||
|
| |||||||||||||||
2,548,390 | ||||||||||||||||
Metal Fabricate/Hardware 0.6% | ||||||||||||||||
Novelis Corp., Gtd. Notes, 144A | 5.875 | 09/30/26 | 100 | 97,500 | ||||||||||||
Zekelman Industries, Inc., Sr. Sec’d. Notes, 144A | 9.875 | 06/15/23 | 50 | 53,235 | ||||||||||||
|
| |||||||||||||||
150,735 | ||||||||||||||||
Mining 2.6% | ||||||||||||||||
Constellium NV (Netherlands), Gtd. Notes, 144A | 5.875 | 02/15/26 | 250 | 243,125 | ||||||||||||
First Quantum Minerals Ltd. (Canada), | ||||||||||||||||
Gtd. Notes, 144A | 7.000 | 02/15/21 | 50 | 50,825 | ||||||||||||
Gtd. Notes, 144A | 6.875 | 03/01/26 | 200 | 186,250 | ||||||||||||
Freeport-McMoRan, Inc., | ||||||||||||||||
Gtd. Notes | 3.875 | 03/15/23 | 75 | 73,911 | ||||||||||||
Gtd. Notes | 4.550 | 11/14/24 | 30 | 29,700 | ||||||||||||
IAMGOLD Corp. (Canada), Gtd. Notes, 144A | 7.000 | 04/15/25 | 125 | 124,375 | ||||||||||||
|
| |||||||||||||||
708,186 | ||||||||||||||||
Miscellaneous Manufacturers 0.1% | ||||||||||||||||
FXI Holdings, Inc., Sr. Sec’d. Notes, 144A | 7.875 | 11/01/24 | 25 | 23,938 | ||||||||||||
Oil & Gas 8.3% | ||||||||||||||||
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp., Gtd. Notes | 7.875 | 12/15/24 | 200 | 63,500 | ||||||||||||
Antero Resources Corp., | ||||||||||||||||
Gtd. Notes | 5.625 | 06/01/23 | 50 | 50,125 | ||||||||||||
Gtd. Notes | 5.000 | 03/01/25 | 125 | 120,000 | ||||||||||||
Ascent Resources Utica Holdings LLC/ARU Finance Corp., Sr. Unsec’d. Notes, 144A | 10.000 | 04/01/22 | 175 | 188,563 | ||||||||||||
Centennial Resource Production LLC, Gtd. Notes, 144A | 5.375 | 01/15/26 | 75 | 71,625 | ||||||||||||
Chesapeake Energy Corp., Gtd. Notes | 8.000 | 06/15/27 | 200 | 198,000 | ||||||||||||
Citgo Holding, Inc., Sr. Sec’d. Notes, 144A | 10.750 | 02/15/20 | 225 | 230,906 |
See Notes to Financial Statements.
18 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Oil & Gas (cont’d.) | ||||||||||||||||
CNX Resources Corp., Gtd. Notes | 5.875 | % | 04/15/22 | 50 | $ | 50,500 | ||||||||||
CrownRock LP/CrownRock Finance, Inc., Sr. Unsec’d. Notes, 144A | 5.625 | 10/15/25 | 25 | 24,219 | ||||||||||||
Diamond Offshore Drilling, Inc., Sr. Unsec’d. Notes | 7.875 | 08/15/25 | 25 | 23,625 | ||||||||||||
Endeavor Energy Resources LP/EER Finance, Inc., | 5.750 | 01/30/28 | 50 | 53,250 | ||||||||||||
Extraction Oil & Gas, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 7.375 | 05/15/24 | 50 | 44,750 | ||||||||||||
Gtd. Notes, 144A | 5.625 | 02/01/26 | 100 | 83,000 | ||||||||||||
Hilcorp Energy I LP/Hilcorp Finance Co., Sr. Unsec’d. Notes, 144A | 5.750 | 10/01/25 | 75 | 74,531 | ||||||||||||
MEG Energy Corp. (Canada), | ||||||||||||||||
Gtd. Notes, 144A | 6.375 | 01/30/23 | 175 | 159,687 | ||||||||||||
Gtd. Notes, 144A | 7.000 | 03/31/24 | 50 | 45,750 | ||||||||||||
Nabors Industries, Inc., Gtd. Notes | 5.750 | 02/01/25 | 100 | 88,500 | ||||||||||||
Precision Drilling Corp. (Canada), Gtd. Notes, 144A | 7.125 | 01/15/26 | 75 | 73,688 | ||||||||||||
Range Resources Corp., | ||||||||||||||||
Gtd. Notes | 4.875 | 05/15/25 | 25 | 22,899 | ||||||||||||
Gtd. Notes | 5.000 | 08/15/22 | 50 | 49,312 | ||||||||||||
Gtd. Notes | 5.000 | 03/15/23 | 75 | 72,469 | ||||||||||||
Seven Generations Energy Ltd. (Canada), Gtd. Notes, 144A | 5.375 | 09/30/25 | 25 | 24,063 | ||||||||||||
Sunoco LP/Sunoco Finance Corp., Gtd. Notes | 5.500 | 02/15/26 | 100 | 99,330 | ||||||||||||
Transocean Pontus Ltd. (Cayman Islands), Sr. Sec’d. Notes, 144A | 6.125 | 08/01/25 | 47 | 47,722 | ||||||||||||
Transocean, Inc. (Cayman Islands), | ||||||||||||||||
Gtd. Notes, 144A | 7.500 | 01/15/26 | 50 | 48,250 | ||||||||||||
Gtd. Notes, 144A | 7.250 | 11/01/25 | 85 | 81,175 | ||||||||||||
WPX Energy, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.250 | 09/15/24 | 50 | 49,812 | ||||||||||||
Sr. Unsec’d. Notes | 8.250 | 08/01/23 | 25 | 28,031 | ||||||||||||
Sr. Unsec’d. Notes | 5.750 | 06/01/26 | 75 | 75,469 | ||||||||||||
|
| |||||||||||||||
2,242,751 | ||||||||||||||||
Packaging & Containers 1.0% | ||||||||||||||||
ADR Finance SA (Luxembourg), Sr. Sec’d. Notes, Cash coupon 7.125% or PIK 7.875% | 7.125 | 09/15/23 | 200 | 200,500 | ||||||||||||
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC, | ||||||||||||||||
Gtd. Notes, 144A | 7.000 | 07/15/24 | 50 | 51,125 | ||||||||||||
Sr. Sec’d. Notes, 144A | 5.125 | 07/15/23 | 25 | 25,000 | ||||||||||||
|
| |||||||||||||||
276,625 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 19 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Pharmaceuticals 0.9% | ||||||||||||||||
Bausch Health Americas, Inc., Gtd. Notes, 144A | 8.500 | % | 01/31/27 | 65 | $ | 67,519 | ||||||||||
Bausch Health Cos., Inc. (Canada), | ||||||||||||||||
Gtd. Notes, 144A | 6.125 | 04/15/25 | 75 | 72,187 | ||||||||||||
Sr. Sec’d. Notes, 144A | 5.750 | 08/15/27 | 25 | 25,219 | ||||||||||||
NVA Holdings, Inc., Gtd. Notes, 144A | 6.875 | 04/01/26 | 100 | 96,500 | ||||||||||||
|
| |||||||||||||||
261,425 | ||||||||||||||||
Pipelines 1.9% | ||||||||||||||||
Antero Midstream Partners LP/Antero Midstream Finance Corp., Gtd. Notes | 5.375 | 09/15/24 | 25 | 25,000 | ||||||||||||
CNX Midstream Partners LP/CNX Midstream Finance Corp., Sr. Unsec’d. Notes, 144A | 6.500 | 03/15/26 | 25 | 24,563 | ||||||||||||
NGPL PipeCo LLC, Sr. Unsec’d. Notes, 144A | 7.768 | 12/15/37 | 50 | 59,687 | ||||||||||||
Rockies Express Pipeline LLC, | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.875 | 04/15/40 | 50 | 53,625 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.500 | 07/15/38 | 100 | 113,000 | ||||||||||||
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., | ||||||||||||||||
Gtd. Notes, 144A | 5.500 | 09/15/24 | 50 | 51,077 | ||||||||||||
Gtd. Notes, 144A | 5.500 | 01/15/28 | 50 | 49,875 | ||||||||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp., | ||||||||||||||||
Gtd. Notes | 5.125 | 02/01/25 | 50 | 50,250 | ||||||||||||
Gtd. Notes, 144A | 5.875 | 04/15/26 | 75 | 78,000 | ||||||||||||
|
| |||||||||||||||
505,077 | ||||||||||||||||
Real Estate 0.9% | ||||||||||||||||
Five Point Operating Co. LP/Five Point Capital Corp., Gtd. Notes, 144A | 7.875 | 11/15/25 | 50 | 48,438 | ||||||||||||
Greystar Real Estate Partners LLC, Sr. Sec’d. Notes, 144A | 5.750 | 12/01/25 | 75 | 75,359 | ||||||||||||
Howard Hughes Corp. (The), Sr. Unsec’d. Notes, 144A | 5.375 | 03/15/25 | 25 | 24,687 | ||||||||||||
Hunt Cos., Inc., Sr. Sec’d. Notes, 144A | 6.250 | 02/15/26 | 100 | 93,000 | ||||||||||||
|
| |||||||||||||||
241,484 | ||||||||||||||||
Real Estate Investment Trusts (REITs) 1.0% | ||||||||||||||||
GLP Capital LP/GLP Financing II, Inc., Gtd. Notes | 5.375 | 04/15/26 | 75 | 77,277 | ||||||||||||
MGM Growth Properties Operating Partnership LP/MGP Finance Co.-Issuer, Inc., Gtd. Notes | 4.500 | 01/15/28 | 75 | 70,125 | ||||||||||||
MPT Operating Partnership LP/MPT Finance Corp., Gtd. Notes | 5.000 | 10/15/27 | 100 | 99,250 | ||||||||||||
|
| |||||||||||||||
246,652 |
See Notes to Financial Statements.
20 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Retail 4.5% | ||||||||||||||||
Beacon Roofing Supply, Inc., Gtd. Notes, 144A | 4.875 | % | 11/01/25 | 100 | $ | 93,094 | ||||||||||
Brinker International, Inc., Gtd. Notes, 144A | 5.000 | 10/01/24 | 75 | 72,187 | ||||||||||||
CEC Entertainment, Inc., Gtd. Notes | 8.000 | 02/15/22 | 75 | 68,062 | ||||||||||||
Ferrellgas LP/Ferrellgas Finance Corp., | ||||||||||||||||
Gtd. Notes | 6.750 | 06/15/23 | 100 | 89,500 | ||||||||||||
Sr. Unsec’d. Notes | 6.500 | 05/01/21 | 25 | 22,375 | ||||||||||||
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 8.625 | 06/15/20 | 150 | 116,250 | ||||||||||||
Sr. Unsec’d. Notes | 8.625 | 06/15/20 | 25 | 19,375 | ||||||||||||
Golden Nugget, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 8.750 | 10/01/25 | 100 | 103,000 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 10/15/24 | 100 | 100,500 | ||||||||||||
L Brands, Inc., | ||||||||||||||||
Gtd. Notes | 5.625 | 10/15/23 | 50 | 49,625 | ||||||||||||
Gtd. Notes | 6.875 | 11/01/35 | 100 | 86,250 | ||||||||||||
PetSmart, Inc., Sr. Sec’d. Notes, 144A | 5.875 | 06/01/25 | 75 | 59,625 | ||||||||||||
Rite Aid Corp., Gtd. Notes, 144A | 6.125 | 04/01/23 | 150 | 127,875 | ||||||||||||
Sally Holdings LLC/Sally Capital, Inc., Gtd. Notes | 5.625 | 12/01/25 | 125 | 122,656 | ||||||||||||
Suburban Propane Partners LP/Suburban Energy Finance Corp., Sr. Unsec’d. Notes | 5.500 | 06/01/24 | 75 | 74,062 | ||||||||||||
|
| |||||||||||||||
1,204,436 | ||||||||||||||||
Semiconductors 0.1% | ||||||||||||||||
Micron Technology, Inc., Sr. Unsec’d. Notes | 5.500 | 02/01/25 | 25 | 25,686 | ||||||||||||
Software 1.9% | ||||||||||||||||
Infor Software Parent LLC/Infor Software Parent, Inc., | 7.125 | 05/01/21 | 250 | 251,000 | ||||||||||||
Infor US, Inc., Gtd. Notes | 6.500 | 05/15/22 | 140 | 142,768 | ||||||||||||
Informatica LLC, Sr. Unsec’d. Notes, 144A | 7.125 | 07/15/23 | 50 | 50,631 | ||||||||||||
RP Crown Parent LLC, Gtd. Notes, 144A | 7.375 | 10/15/24 | 60 | 61,500 | ||||||||||||
TIBCO Software, Inc., Sr. Unsec’d. Notes, 144A | 11.375 | 12/01/21 | 25 | 26,562 | ||||||||||||
|
| |||||||||||||||
532,461 | ||||||||||||||||
Telecommunications 6.7% | ||||||||||||||||
CenturyLink, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 7.650 | 03/15/42 | 50 | 43,625 | ||||||||||||
Sr. Unsec’d. Notes | 5.625 | 04/01/25 | 100 | 95,346 | ||||||||||||
CommScope Finance LLC, Sr. Unsec’d. Notes, 144A | 8.250 | 03/01/27 | 25 | 25,938 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 21 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Telecommunications (cont’d.) | ||||||||||||||||
CommScope Technologies LLC, | ||||||||||||||||
Gtd. Notes, 144A | 6.000 | % | 06/15/25 | 95 | $ | 89,537 | ||||||||||
Gtd. Notes, 144A | 5.000 | 03/15/27 | 90 | 80,577 | ||||||||||||
Digicel Ltd. (Bermuda), Gtd. Notes, 144A | 6.750 | 03/01/23 | 200 | 139,000 | ||||||||||||
GTT Communications, Inc., Gtd. Notes, 144A | 7.875 | 12/31/24 | 65 | 56,063 | ||||||||||||
Intelsat Jackson Holdings SA (Luxembourg), Gtd. | 9.750 | 07/15/25 | 70 | 72,625 | ||||||||||||
ORBCOMM, Inc., Sr. Sec’d. Notes, 144A | 8.000 | 04/01/24 | 125 | 129,375 | ||||||||||||
Sprint Capital Corp., Gtd. Notes | 8.750 | 03/15/32 | 300 | 325,312 | ||||||||||||
Sprint Corp., Gtd. Notes | 7.625 | 02/15/25 | 225 | 235,687 | ||||||||||||
Wind Tre SpA (Italy), Sr. Sec’d. Notes, 144A | 5.000 | 01/20/26 | 400 | 344,840 | ||||||||||||
Xplornet Communications, Inc. (Canada), Gtd. Notes, Cash coupon 9.625% or PIK 10.625%, 144A | 9.625 | 06/01/22 | 158 | 162,707 | ||||||||||||
|
| |||||||||||||||
1,800,632 | ||||||||||||||||
Textiles 0.5% | ||||||||||||||||
Eagle Intermediate Global Holding BV/Ruyi US Finance LLC (China), Sr. Sec’d. Notes, 144A | 7.500 | 05/01/25 | 150 | 145,575 | ||||||||||||
Toys/Games/Hobbies 0.2% | ||||||||||||||||
Mattel, Inc., Gtd. Notes, 144A | 6.750 | 12/31/25 | 50 | 49,188 | ||||||||||||
Transportation 0.7% | ||||||||||||||||
XPO Logistics, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 6.125 | 09/01/23 | 100 | 99,750 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 08/15/24 | 100 | 100,637 | ||||||||||||
|
| |||||||||||||||
200,387 | ||||||||||||||||
Trucking & Leasing 0.9% | ||||||||||||||||
Avolon Holdings Funding Ltd. (Cayman Islands), | ||||||||||||||||
Gtd. Notes, 144A | 5.250 | 05/15/24 | 50 | 51,250 | ||||||||||||
Park Aerospace Holdings Ltd. (Cayman Islands), | ||||||||||||||||
Gtd. Notes, 144A | 5.250 | 08/15/22 | 125 | 127,964 | ||||||||||||
Gtd. Notes, 144A | 5.500 | 02/15/24 | 75 | 77,531 | ||||||||||||
256,745 | ||||||||||||||||
|
| |||||||||||||||
TOTAL CORPORATE BONDS | 24,615,354 | |||||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS | 25,830,412 | |||||||||||||||
|
|
See Notes to Financial Statements.
22 |
Description | Interest Rate | Maturity Date | Shares | Value | ||||||||||||
SHORT-TERM INVESTMENTS 3.2% | ||||||||||||||||
AFFILIATED MUTUAL FUND 3.2% | ||||||||||||||||
PGIM Institutional Money Market Fund(w) | 874,538 | $ | 874,800 | |||||||||||||
|
| |||||||||||||||
Principal Amount (000)# | ||||||||||||||||
TIME DEPOSIT 0.0%* | ||||||||||||||||
Brown Brothers Harriman & Co. | 1.750 | % | 03/01/19 | 1 | 898 | |||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM TERM INVESTMENTS | 875,698 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 99.0% | 26,706,110 | |||||||||||||||
Other assets in excess of liabilities 1.0% | 263,701 | |||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 26,969,811 | ||||||||||||||
|
|
The following abbreviations are used in the semi-annual report:
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers.
CLO—Collateralized Loan Obligation
LIBOR—London Interbank Offered Rate
PIK—Payment-in-Kind
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
(c) | Variable rate instrument. The interest rate shown reflects the rate in effect at February 28, 2019. |
(p) | Interest rate not available as of February 28, 2019. |
(s) | Rate represents yield to maturity at purchase date. |
(w) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Institutional Money Market Fund. |
* | A zero balance may reflect actual amounts rounding to less than 0.05%. |
Futures contracts outstanding at February 28, 2019:
Number of contracts | Type | Expiration Date | Current Notional Amount | Value / Unrealized Appreciation (Depreciation) | ||||||||||||
Long Positions: | ||||||||||||||||
1 | 5 Year U.S. Treasury Notes | June 2019 | $ | 114,563 | $ | (63 | ) | |||||||||
10 | 10 Year U.S. Treasury Notes | June 2019 | 1,220,000 | (4,508 | ) | |||||||||||
|
| |||||||||||||||
(4,571 | ) | |||||||||||||||
|
| |||||||||||||||
Short Positions: | ||||||||||||||||
2 | U.S. Long Bond | June 2019 | 288,938 | 2,727 | ||||||||||||
1 | U.S. Ultra Bond | June 2019 | 159,594 | 2,273 | ||||||||||||
|
| |||||||||||||||
5,000 | ||||||||||||||||
|
| |||||||||||||||
$ | 429 | |||||||||||||||
|
|
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 23 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral to cover requirements for open centrally cleared/ exchange-traded derivatives are listed by broker as follows:
Broker | Cash and/or Foreign Currency | Securities Market Value | ||||||
Citigroup Global Markets, Inc. | $ | 150,000 | $ | — |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of February 28, 2019 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Asset-Backed Securities | ||||||||||||
Collateralized Loan Obligations | $ | — | $ | 712,593 | $ | — | ||||||
Bank Loans | — | 502,465 | — | |||||||||
Corporate Bonds | — | 24,615,354 | — | |||||||||
Affiliated Mutual Fund | 874,800 | — | — | |||||||||
Time Deposit | — | 898 | — | |||||||||
Other Financial Instruments* | ||||||||||||
Futures contracts | 429 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 875,229 | $ | 25,831,310 | $ | — | ||||||
|
|
|
|
|
|
* | Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures, forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value. |
See Notes to Financial Statements.
24 |
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of February 28, 2019 were as follows (unaudited):
Media | 9.4 | % | ||
Oil & Gas | 8.4 | |||
Telecommunications | 6.7 | |||
Healthcare-Services | 5.7 | |||
Chemicals | 5.0 | |||
Commercial Services | 4.7 | |||
Retail | 4.5 | |||
Entertainment | 3.8 | |||
Home Builders | 3.8 | |||
Electric | 3.8 | |||
Affiliated Mutual Fund | 3.2 | |||
Aerospace/Defense | 2.9 | |||
Collateralized Loan Obligations | 2.6 | |||
Mining | 2.6 | |||
Food | 2.5 | |||
Diversified Financial Services | 2.4 | |||
Building Materials | 2.3 | |||
Software | 1.9 | |||
Computers | 1.9 | |||
Pipelines | 1.9 | |||
Infrastructure Software | 1.8 | |||
Auto Manufacturers | 1.6 | |||
Auto Parts & Equipment | 1.4 | |||
Packaging & Containers | 1.0 | |||
Real Estate Investment Trusts (REITs) | 1.0 | |||
Real Estate | 0.9 | |||
Internet | 0.9 | |||
Pharmaceuticals | 0.9 | |||
Trucking & Leasing | 0.9 | % | ||
Iron/Steel | 0.8 | |||
Engineering & Construction | 0.8 | |||
Lodging | 0.7 | |||
Transportation | 0.7 | |||
Metal Fabricate/Hardware | 0.6 | |||
Gas | 0.6 | |||
Machinery-Diversified | 0.6 | |||
Home Furnishings | 0.5 | |||
Textiles | 0.5 | |||
Housewares | 0.3 | |||
Banks | 0.3 | |||
Household Products/Wares | 0.3 | |||
Electronics | 0.3 | |||
Beverages | 0.3 | |||
Agriculture | 0.2 | |||
Distribution/Wholesale | 0.2 | |||
Coal | 0.2 | |||
Toys/Games/Hobbies | 0.2 | |||
Healthcare-Products | 0.2 | |||
Environmental Control | 0.1 | |||
Semiconductors | 0.1 | |||
Miscellaneous Manufacturers | 0.1 | |||
Time Deposit | 0.0 | * | ||
|
| |||
99.0 | ||||
Other assets in excess of liabilities | 1.0 | |||
|
| |||
100.0 | % | |||
|
|
* | Less than +/- 0.05%. |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is interest rate contracts risk. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 25 |
Schedule of Investments(unaudited) (continued)
as of February 28, 2019
Fair values of derivative instruments as of February 28, 2019 as presented in the Statement of Assets and Liabilities:
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments, | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Interest rate contracts | Due from/to broker— variation margin futures* | $ | 5,000 | Due from/to broker— variation margin futures* | $ | (4,571 | ) | |||||
|
|
|
|
* | Fund Includes cumulative appreciation (depreciation) as reported in the schedule of open futures. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects of derivative instruments on the Statement of Operations for the period ended February 28, 2019 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | ||||
Derivatives not accounted for as hedging | Futures | |||
Interest rate contracts | $ | 27,457 | ||
|
|
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||
Derivatives not accounted for as hedging | Futures | |||
Interest rate contracts | $ | 429 | ||
|
|
For the period ended February 28, 2019 the Fund’s average volume of derivative activities is as follows:
Futures Contracts—Long Positions(1) |
$1,619,660 |
Futures Contracts—Short Positions(1) |
$364,172 |
(1) | Notional Amount in USD. |
See Notes to Financial Statements.
26 |
Statement of Assets & Liabilities(unaudited)
as of February 28, 2019
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $26,105,522) | $ | 25,831,310 | ||
Affiliated investments (cost $874,774) | 874,800 | |||
Cash | 15 | |||
Interest and dividends receivable | 456,466 | |||
Deposit with broker for centrally cleared/exchange-traded derivatives | 150,000 | |||
Receivable for investments sold | 136,593 | |||
|
| |||
Total assets | 27,449,184 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 468,647 | |||
Management fee payable | 10,046 | |||
Due to broker—variation margin futures | 680 | |||
|
| |||
Total Liabilities | 479,373 | |||
|
| |||
Net Assets | $ | 26,969,811 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 675 | ||
Paid-in capital in excess of par | 27,152,262 | |||
|
| |||
27,152,937 | ||||
Total distributable earnings (loss) | (183,126 | ) | ||
|
| |||
Net assets, February 28, 2019 | $ | 26,969,811 | ||
|
| |||
Net asset value, offering price and redemption price per share, | $ | 39.96 | ||
|
|
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 27 |
Statement of Operations(unaudited)
Period Ended February 28, 2019*
Net Investment Income (Loss) |
| |||
Income |
| |||
Interest income | $ | 711,316 | ||
Affiliated dividend income | 10,387 | |||
|
| |||
Total income | 721,703 | |||
|
| |||
Expenses | ||||
Management fee | 57,617 | |||
|
| |||
Total expenses | 57,617 | |||
Less: Management fee waiver and/or expense reimbursement | (932 | ) | ||
|
| |||
Net expenses | 56,685 | |||
|
| |||
Net investment income (loss) | 665,018 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $34) | (18,373 | ) | ||
Futures transactions | 27,457 | |||
|
| |||
9,084 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $26) | (274,186 | ) | ||
Futures | 429 | |||
|
| |||
(273,757 | ) | |||
|
| |||
Net gain (loss) on investment transactions | (264,673 | ) | ||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 400,345 | ||
|
|
* | For the period from September 24, 2018 (commencement of operations) through February 28, 2019. |
See Notes to Financial Statements.
28 |
Statement of Changes in Net Assets(unaudited)
Period Ended February 28, 2019* | ||||
Increase (Decrease) in Net Assets | ||||
Operations | ||||
Net investment income (loss) | $ | 665,018 | ||
Net realized gain (loss) on investments | 9,084 | |||
Net change in unrealized appreciation (depreciation) on investments | (273,757 | ) | ||
|
| |||
Net increase (decrease) in net assets resulting from operations | 400,345 | |||
|
| |||
Dividends and Distributions | ||||
Distributions from distributable earnings | (583,471 | ) | ||
|
| |||
Fund share transactions (Net of share conversions) | ||||
Net proceeds from shares sold | 27,152,937 | |||
|
| |||
Net increase (decrease) in net assets from Fund share transactions | 27,152,937 | |||
|
| |||
Total increase (decrease) | 26,969,811 | |||
Net Assets: | ||||
Beginning of period | — | |||
|
| |||
End of period | $ | 26,969,811 | ||
|
|
* | For the period from September 24, 2018 (commencement of operations) through February 28, 2019. |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 29 |
Notes to Financial Statements(unaudited)
PGIM ETF Trust (the “Trust”) is a diversified,open-end management investment company registered under the Investment Company Act of 1940, as amended (“1940 Act”), and operated as an exchange-traded fund. The Trust was organized as a Delaware statutory trust on October 23, 2017 and consists of six separate series (each a “Fund” or collectively, the “Funds”): PGIM Ultra Short Bond ETF, PGIM Active High Yield Bond ETF, PGIM QMA Strategic AlphaLarge-Cap Core ETF, PGIM QMA Strategic AlphaSmall-Cap Growth ETF, PGIM QMA Strategic Alpha Small- Cap Value ETF and PGIM QMA Strategic Alpha International Equity ETF.
These financial statements relate only to PGIM Active High Yield Bond ETF, which commenced investment operations on September 24, 2018.
The investment objective of the Fund is to seek total return through a combination of current income and capital appreciation.
1. Accounting Policies
The Fund follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services—Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation:The Fund holds securities and other assets and liabilities that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Trust’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.
For the fiscal reportingperiod-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may
30 |
occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Fund’s foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurements and Disclosures.
Investments inopen-end,non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party vendor source. The Fund utilizes the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Bank loans are generally valued at prices provided by approved independent pricing vendors. The pricing vendors utilize broker/dealer quotations and provide prices based on the average of such quotations. Bank loans valued using such vendor prices are generally classified as Level 2 in the fair value hierarchy. Bank loans valued based on a single broker quote or at the original transaction price in excess of five business days are classified as Level 3 in the fair value hierarchy.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of
PGIM Active High Yield Bond ETF | 31 |
Notes to Financial Statements(unaudited) (continued)
the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Illiquid Securities:Pursuant to Rule22e-4 under the Investment Company Act of 1940, the Fund has adopted a Board approved Liquidity Risk Management Program (“LRMP”) that requires, among other things, that the Fund limit its illiquid investments that are assets to no more than 15% of net assets. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, may not reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur transaction costs that would not be incurred in the sale of securities that were freely marketable.
Restricted Securities:Securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer are considered restricted as to disposition under federal securities law (‘restricted securities”). Such restricted securities are valued pursuant to the valuation procedures noted above. Restricted securities that would otherwise be considered illiquid investments pursuant to the Fund’s LRMP because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. Therefore, these Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act of 1933, may be classified higher than “Illiquid” under the LRMP (i.e. “moderately liquid” or “less liquid” investments). However, the liquidity of the Fund’s investments in restricted securities could be impaired if trading does not develop or declines.
Financial Futures Contracts:A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin”. Subsequent payments, known as “variation margin”, are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.
32 |
The Fund invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Since futures contracts are exchange- traded, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Securities Transactions and Net Investment Income:Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on theex-date, or for certain foreign securities, when the Fund becomes aware of such dividends. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual.
Taxes:It is the Fund’s policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions:The Fund expects to declare dividends of its net investment income daily and pay such dividends monthly. Distributions of net realized capital and currency gains, if any, are declared and paid at least annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on theex-date. Permanent book/ tax differences relating to income and gain (loss) are reclassified amongst total distributable earnings (loss) andpaid-in capital in excess of par, as appropriate.
Estimates:The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
2. Agreements
Pursuant to a management agreement with the Trust on behalf of the Fund (the Management Agreement), PGIM Investments LLC (“PGIM Investments”), subject to the supervision of the Board and in conformity with the stated policies of the Fund, manages both the investment operations of the Fund and the composition of the Fund’s portfolio, including the purchase, retention and disposition of assets. In connection therewith, the Manager is obligated to keep
PGIM Active High Yield Bond ETF | 33 |
Notes to Financial Statements(unaudited) (continued)
certain books and records of the Fund. The Manager is authorized to enter into subadvisory agreements for investment advisory services in connection with the management of the Fund. The Manager will continue to have responsibility for all investment advisory services performed pursuant to any such subadvisory agreements. PGIM Investments will review the performance of the investment subadviser(s) and make recommendations to the Board with respect to the retention of investment subadvisers and the renewal of contracts. The Manager also administers the Fund’s business affairs and, in connection therewith, furnishes the Fund with office facilities, together with those ordinary clerical and bookkeeping services which are not being furnished by the Fund’s custodian (the Custodian). The management services of PGIM Investments to the Fund are not exclusive under the terms of the Management Agreement and PGIM Investments is free to, and does, render management services to others.
The Board of Trustees of the Trust has approved a unitary management fee structure for the Fund. Under the unitary fee structure, the Manager is responsible for paying substantially all the expenses of the Fund, costs of borrowing money (including interest expenses and any loan commitment or other associated fees), taxes, acquired fund fees and expenses, brokerage fees, costs of holding shareholder meetings, litigation, indemnification and extraordinary expenses.
The unitary fee paid to the Manager is accrued daily and payable monthly, at an annual rate of 0.53% of the Fund’s average daily net assets. The Manager has agreed to waive a portion of its annual fee equal to the amount of the management fee received by the subadviser due to the Fund’s investment in the PGIM Institutional Money Market Fund.
The Manager has entered into a subadvisory agreement (Subadvisory Agreement) with PGIM, Inc., the Fund’s investment subadviser (the “subadviser”), which provides subadvisory services to the Fund through its PGIM Fixed Income unit. The Subadvisory Agreement provides that the subadviser will furnish investment advisory services in connection with the management of the Fund. In connection therewith, the subadviser is obligated to keep certain books and records of the Fund. Under the Subadvisory Agreement, the subadviser, subject to the supervision of PGIM Investments, is responsible for managing the assets of the Fund in accordance with the Fund’s investment objectives, policies and restrictions. The subadviser determines what securities and other instruments are purchased and sold for the Fund and is responsible for obtaining and evaluating financial data relevant to the Fund. PGIM Investments continues to have responsibility for all investment advisory services pursuant to the Management Agreement and supervises the subadviser’s performance of such services.
Brown Brothers Harriman & Co. (“BBH”) serves as the Custodian, Transfer Agent and Administrative Agent for the Trust. Pursuant to a Custodian Agreement, BBH maintains
34 |
certain financial accounting books and records pursuant to an agreement with the Trust. Subcustodians provide custodial services for anynon-US assets held outside the United States. Pursuant to an Administrative and Transfer Agency Agreement, BBH maintains certain books and records and provides transfer agency, administrative, legal, tax support and accounting and financial reporting services for the maintenance and operations of the Trust. As the transfer and dividend disbursing agent of the Trust, BBH provides customary transfer agency services to the Trust, including the handling of shareholder communications, the processing of shareholder transactions, the maintenance of shareholder account records, the payment of dividends and distributions, and related functions. For these services, BBH receives compensation from the Manager and is reimbursed for expenses, including custodian and administration fees and certainout-of-pocket expenses including, but not limited to, postage, stationery, printing, allocable communication expenses and other costs. The Manager is responsible for compensating BBH under the Custodian and Administrative and Transfer Agency Agreements.
3. Other Transactions with Affiliates
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule17a-7 procedures. Rule17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Pursuant to the Rule17a-7 procedures and consistent with guidance issued by the SEC, the Fund’s Chief Compliance Officer (“CCO”) prepares a quarterly summary of all such transactions for submission to the Board, together with the CCO’s written representation that all such17a-7 transactions were effected in accordance with the Fund’s Rule17a-7 procedures. Any17a-7 transactions for the reporting period are disclosed in the “Portfolio Securities” note, below.
The Fund may invest its overnight sweep cash in the PGIM Institutional Money Market Fund (the “Money Market Fund”), registered under the 1940 Act and managed by PGIM Investments. Through the Fund’s investments in the mentioned underlying fund, PGIM Investments and/or its affiliates are paid fees or compensated for providing their services. Earnings from the Money Market Fund are disclosed on the Statement of Operations as “Affiliated dividend income”.
Prudential Investment Management Services LLC (“PIMS” or the “Distributor”), acts as the distributor of the Fund pursuant to the terms of a distribution agreement (“Distribution Agreement”) between the Trust and the Distributor. The Distributor is a subsidiary of Prudential Financial, Inc. (“Prudential”). Shares are continuously offered for sale by the Distributor only.
Although the Distributor does not receive any fees under the Distribution Agreement, the Manager or its affiliates may pay the Distributor for certain distribution related services.
PGIM Active High Yield Bond ETF | 35 |
Notes to Financial Statements(unaudited) (continued)
4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the period ended February 28, 2019, were $60,821,551 and $33,598,513 respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the period ended February 28, 2019, is presented as follows:
Value | Cost of | Proceeds | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End | Shares, End of Period | Dividend | |||||||
PGIM Institutional Money Market Fund* | ||||||||||||||
$ — | $29,586,740 | $(28,712,000) | $26 | $34 | $874,800 | 874,538 | $10,387 |
* | The Fund did not have any capital gain distributions during the reporting period. |
For the reporting period ended February 28, 2019, no17a-7 transactions were entered into by the Fund.
5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of February 28, 2019 were as follows:
Tax Basis | $ | 26,959,275 | ||
|
| |||
Gross Unrealized Appreciation | 229,353 | |||
Gross Unrealized Depreciation | (482,089 | ) | ||
|
| |||
Net Unrealized Depreciation | $ | (252,736 | ) | |
|
|
The book basis may differ from tax basis due to certaintax-related adjustments.
The Manager has analyzed the Fund’s tax positions taken and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
6. Capital and Ownership
The Fund is an exchange-traded fund, commonly known as an “ETF”. Individual shares of the Fund may only be purchased and sold in secondary market transactions through
36 |
brokers or other financial intermediaries. Shares of the Fund are listed for trading on the NYSE Arca, Inc. (the “Exchange”), and because the shares of the Fund trade at market prices rather than NAV, shares of the Fund may trade at a price greater than NAV (a premium) or less than NAV (a discount). The Fund will issue and redeem its shares at NAV only in a large specified number of shares called a “Creation Unit” or multiples thereof to investors who have entered into an agreement with the Distributor and are authorized to transact with the Trust in Creation Units (“Authorized Participants”). A Creation Unit consists of 25,000 shares of the Fund. The Fund generally issues and redeems Creation Units in return for a specified amount of cash and/ or designated portfolio of securities. Except when aggregated in Creation Units, shares are not individually redeemable. Authorized Participants transacting in Creation Units includingnon-standard orders and whole or partial cash purchases or redemptions may also pay variable transaction fees to compensate the Fund for certain transaction costs (e.g. brokerage costs) relating to investing in portfolio securities. Such variable transaction fees, if any, are currently being waived by the Fund. In addition, fixed transaction fees are imposed for the transfer and other costs associated with the creation or redemption of Creation Units. Authorized Participants are responsible for paying these fixed transaction fees to BBH.
The Trust is authorized to issue an unlimited number of shares of beneficial interest, $0.001 par value per share.
As of February 28, 2019, Prudential, through its affiliate entities, including affiliated funds, owned 625,000 shares of the Fund.
At reporting period end, one affiliated shareholder of record held greater than 5% of outstanding shares, which represented 93% of the Fund’s outstanding shares.
Transactions in shares of beneficial interest were as follows:
Period ended February 28, 2019:
Shares | Amount | |||||||
Shares sold | 675,000 | $ | 27,152,937 | |||||
Shares reacquired | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 675,000 | 27,152,937 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 675,000 | $ | 27,152,937 | |||||
|
|
|
|
7. Borrowings
The Trust, on behalf of the Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 4, 2018 through October 3, 2019. The Funds pay an annualized commitment fee of
PGIM Active High Yield Bond ETF | 37 |
Notes to Financial Statements(unaudited) (continued)
0.15% of the unused portion of the SCA. The Fund’s portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. The interest on borrowings under the SCA is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the1-month LIBOR rate or (3) zero percent.
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Funds in the SCA equitably.
The Fund did not utilize the SCA during the period ended February 28, 2019.
8. Risk of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below:
Authorized Participant Concentration Risk:Only an Authorized Participant may engage in creation or redemption transactions directly with the Fund. The Fund has a limited number of intermediaries that act as Authorized Participants and none of these Authorized Participants is or will be obligated to engage in creation or redemption transactions. To the extent that these intermediaries exit the business or are unable to or choose not to proceed with creation and/ or redemption orders with respect to the Fund and no other Authorized Participant creates or redeems, shares of the Fund may trade at a substantial discount or premium to NAV, may trade at larger spreads and possibly face trading halts and/or delisting.
Bond Obligations Risk:The Fund’s holdings, share price, yield and total return may fluctuate in response to bond market movements. The value of bonds may decline for issuer-related reasons, including management performance, financial leverage and reduced demand for the issuer’s goods and services. Certain types of fixed-income obligations also may be subject to “call and redemption risk,” which is the risk that the issuer may call a bond held by the Fund for redemption before it matures and the Fund may not be able to reinvest at the same level and therefore would earn less income.
ETF Shares Trading Risk:Fund shares are listed for trading on the Exchange and the shares are bought and sold in the secondary market at market prices. The market prices of
38 |
the shares of the Fund are expected to fluctuate in response to changes in the Fund’s NAV, the intraday value of the Fund’s holdings and supply and demand for shares of the Fund. We cannot predict whether shares of the Fund will trade above, below or at their NAV. Trading on the Exchange, including trading of Fund shares, may be halted in certain circumstances and shareholders may not be able to sell Fund shares at the time or price desired. During periods of stressed market conditions, the market for the shares of the Fund may become less liquid in response to deteriorating liquidity in the markets for the Fund’s portfolio investments. This adverse effect on the liquidity of the Fund’s shares could lead to differences between the market price of the Fund’s shares and the NAV of those shares. There can be no assurance that the requirements of the Exchange to maintain the listing of shares of the Fund will continue to be met. At times, trading in the securities of ETFs has become volatile and unpredictable and the price of ETF shares has diverged from market driven fundamentals. Since the Fund is new, an active secondary market for the shares of the Fund may not develop or may not continue once developed.
Interest Rate Risk:The value of an investment may go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration securities. When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Fund may be required to reinvest the proceeds at a lower interest rate. This is referred to as “prepayment risk.” When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the Fund’s holdings may fall sharply. This is referred to as “extension risk. The Fund may face a heightened level of interest rate risk as a result of the U.S. Federal Reserve Board’s policies. The Fund’s investments may lose value if short-term or long- term interest rates rise sharply or in a manner not anticipated by the subadviser.
Liquidity Risk:The Fund may invest in instruments that trade in lower volumes and are less liquid than other investments. Liquidity risk exists when particular investments made by the Fund are difficult to purchase or sell. Liquidity risk includes the risk that the Fund may make investments that may become less liquid in response to market developments or adverse investor perceptions. Investments that are illiquid or that trade in lower volumes may be more difficult to value. If the Fund is forced to sell these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments may not reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment, the Fund may incur higher transaction costs when executing trade orders of a given size. The reduction in dealer market-making capacity in the fixed-income markets that has occurred in recent years also has the potential to reduce liquidity. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Market and Credit Risk:Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the
PGIM Active High Yield Bond ETF | 39 |
Notes to Financial Statements(unaudited) (continued)
securities owned by the Fund fall, the value of an investment in the Fund will decline. Additionally, the Fund may also be exposed to credit risk in the event that an issuer or guarantor fails to perform or that an institution or entity with which the Fund has unsettled or open transactions defaults.
Derivatives Risk:Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Fund will depend on the subadviser’s ability to analyze and manage derivatives transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” and therefore may magnify or otherwise increase investment losses to the Fund. The Fund’s use of derivatives may also increase the amount of taxes payable by shareholders. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Fund’s derivatives positions. In fact, manyover-the-counter derivative instruments will not have liquidity beyond the counterparty to the instrument.Over-the-counter derivative instruments also involve the risk that the other party will not meet its obligations to the Fund.
9. Recent Accounting Pronouncements and Reporting Updates
In August 2018, the Securities and Exchange Commission (the “SEC”) adopted amendments to RegulationS-X to update and simplify the disclosure requirements for registered investment companies by eliminating requirements that are redundant or duplicative of US GAAP requirements or other SEC disclosure requirements. The new amendments require the presentation of the total, rather than the components, of distributable earnings on the Statement of Assets and Liabilities and the total, rather than the components, of dividends from net investment income and distributions from net realized gains on the Statements of Changes in Net Assets. The amendments also removed the requirement for the parenthetical disclosure of undistributed net investment income on the Statements of Changes in Net Assets and certain tax adjustments that were reflected in the Notes to Financial Statements. All of these have been reflected in the Fund’s financial statements.
In August 2018, the FASB issued Accounting Standards Update (“ASU”)No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the Fund’s policy for the timing of transfers between levels. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Manager has evaluated the implications of certain provisions of the ASU and has determined to early adopt aspects related to the
40 |
removal and modification of certain fair value measurement disclosures under the ASU effective immediately. At this time, the Manager is evaluating the implications of certain other provisions of the ASU related to new disclosure requirements and any impact on the financial statement disclosures has not yet been determined.
PGIM Active High Yield Bond ETF | 41 |
Financial Highlights(unaudited)
September 24, 2018(e) | ||||
2019 | ||||
Per Share Operating Performance(a): | ||||
Net Asset Value, Beginning of Period | $40.00 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 1.03 | |||
Net realized and unrealized gain (loss) on investments | (0.17 | ) | ||
Total from investment operations | 0.86 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (0.90 | ) | ||
Net asset value, end of period | $39.96 | |||
Total Return(b): | 2.22% | |||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $26,970 | |||
Average net assets (000) | $25,436 | |||
Ratios to average net assets(c): | ||||
Expenses after waivers and/or expense reimbursement | 0.52% | (d) | ||
Expenses before waivers and/or expense reimbursement | 0.53% | (d) | ||
Net investment income (loss) | 6.12% | (d) | ||
Portfolio turnover rate | 133% | (f) |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of the period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Fund invests. |
(d) | Annualized. |
(e) | Commencement of operations. |
(f) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
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Board Approval of Advisory Agreements(unaudited)
Initial Approval of the Fund’s Advisory Agreements
The Board of Trustees of the PGIM ETF Trust (the Board) considered the proposed management agreement with PGIM Investments LLC (the Manager) and the proposed subadvisory agreement with PGIM, Inc. (PGIM), through its PGIM Fixed Income (PFI) division, and PGIM Limited to serve as the subadvisers (together, the Subadviser) with respect to the PGIM Active High Yield Bond ETF (the Fund) prior to the Fund’s commencement of operations. The Board, including all of the Independent Trustees, met on June 20, 2018 (the Meeting) and approved the agreements for an initialtwo-year period, after concluding that approval of the agreements was in the best interests of the Fund.
In advance of the Meeting, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its considerations.
In approving the agreements, the Board, including the Independent Trustees advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services to be provided to the Fund by the Manager and the Subadviser; any relevant comparable performance information and the Subadviser’s qualifications and track record in serving other affiliated funds; and the fees proposed to be paid by the Fund to the Manager and by the Manager to the Subadviser under the agreements. In connection with its deliberations, the Board considered information provided by the Manager and the Subadviser at or in advance of the Meeting. The Board also considered information that the Trustees received throughout the year regarding the Manager and the Subadviser in their capacity as directors or trustees of other funds in the Prudential organization. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Board’s decision to approve the agreements with respect to the Fund.
The Trustees determined that the overall arrangements between the Fund and the Manager, which will serve as the Fund’s investment manager pursuant to a management agreement, and between the Manager and the Subadviser, which will serve as the Fund’s subadviser pursuant to the terms of a subadvisory agreement, are appropriate in light of the services to be performed and the fees to be charged under the agreements and such other matters as the Trustees considered relevant in the exercise of their business judgment.
The material factors and conclusions that formed the basis for the Trustees’ reaching their determinations to approve the agreements are discussed below.
Nature, quality and extent of services
With respect to the Manager, the Board noted that it had received and considered information about the Manager at the Meeting, including information relating to the
PGIM Active High Yield Bond ETF |
Board Approval of Advisory Agreements(continued)
approval and renewal, as applicable, of the management agreements between the Manager and the other Prudential Retail Funds, as well as information received at other regular meetings throughout the year of the Prudential Retail Funds, regarding the nature, quality and extent of services provided by the Manager. The Board considered the services to be provided by the Manager, including but not limited to the oversight of the Subadviser, as well as the provision of fund recordkeeping, compliance and other services to the Fund. With respect to the Manager’s oversight of the Subadviser, the Board noted that the Manager’s Strategic Investment Research Group, which is a business unit of the Manager, is responsible for monitoring and reporting to the Manager’s senior management on the performance and operations of the Subadviser. The Board also noted that the Manager pays the salaries of the officers of the Trust and Trustees of the Trust who are affiliated persons of the Manager or Subadviser. The Board reviewed the qualifications, backgrounds and responsibilities of the Manager’s senior management responsible for the oversight of the Fund and the Subadviser, and was also provided with information pertaining to the Manager’s organizational structure, senior management, investment operations and other relevant information. The Board noted that the Manager had engaged personnel and consultants with experience in the management of exchanged-traded funds. The Board further noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer as to the Manager for services provided to other Prudential Retail Funds. The Board noted that it had concluded that it was satisfied with the nature, quality and extent of the services provided by the Manager to the other Prudential Retail Funds and determined that it was reasonable to conclude that the nature, quality and extent of services to be provided by the Manager under the management agreement for the Fund would be similar in nature to those provided under the other management agreements.
With respect to the Subadviser, the Board noted that it had received and considered information about the Subadviser at the Meeting, including information relating to the approval and renewal, as applicable, of subadvisory agreements between the Manager and the Subadviser with respect to other Prudential Retail Funds, as well as at other regular meetings throughout the year, regarding the nature, quality and extent of services provided by the Subadviser. The Board considered, among other things, the qualifications, background and experience of the Subadviser’s portfolio managers who will be responsible for theday-to-day management of the Fund’s portfolio, as well as information on the Subadviser’s organizational structure, senior management, investment operations and other relevant information. The Board also considered theSub-Adviser’s experience managing other similar investment strategies. The Board further noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer as to the Subadviser for services provided to other Prudential Retail Funds. The Board noted that it was satisfied with the nature, quality and extent of services provided by the Subadviser with respect to the other Prudential Retail Funds served by the Subadviser and determined that it was reasonable to conclude that the nature, quality and extent of services to be provided by the
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Subadviser under the subadvisory agreement for the Fund would be similar in nature to those provided under the other subadvisory agreements. The Board noted that the Subadviser is affiliated with the Manager.
Performance
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, no investment performance for the Fund existed for Board review. The Fund’s strategy is a new strategy for the Subadviser. The Manager will provide information relating to performance to the Board in connection with subsequent reviews of the management agreement and subadvisory agreement.
Fee Rates
The Board considered the proposed management fees of 0.53% of the average daily value of the Fund’s investable assets to be paid by the Fund to the Manager and the proposed subadvisory fees of 0.265% of the Fund’s investable assets to be paid by the Manager to the Subadviser. The Board also considered that for purposes of calculating the proposed management and subadvisory fees, investable assets of the Fund means the Fund’s net assets plus any borrowings for investment purposes. The Board considered the nature of the management fee as a unitary fee and that the Manager would be responsible for the Fund’s expenses except for those expenses reflected in the management agreement as remaining the responsibility of the Fund. Under the Management Agreement, the Fund generally will be responsible for only paying interest and other borrowing expenses, taxes, brokerage expenses, acquired fund fees and expenses, expenses associated with shareholder meetings and proxy statements, extraordinary expenses and future12b-1 fees (if any).
The Board considered information provided by the Manager comparing the Fund’s proposed management fee rate and total expenses (including the effects of leverage) to the Lipper 15(c) Peer Group. The Board noted that the Fund’s management fee was in the first quartile and anticipated total expenses were in the first quartile of the Lipper Peer Group (first quartile being the lowest fee) based upon net assets assuming outstanding leverage.
The Board concluded that the proposed management fee and total expenses were reasonable in light of the services to be provided.
Profitability
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, the Board noted that there was no historical profitability information with respect to the Fund to be reviewed. The Board noted that it would review profitability information in connection with subsequent renewals of the management and subadvisory agreements.
PGIM Active High Yield Bond ETF |
Board Approval of Advisory Agreements(continued)
Economies of Scale
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, the Board noted that there was no historical information regarding economies of scale with respect to the Fund to be reviewed. The Board noted that it would review such information in connection with subsequent renewals of the management and subadvisory agreements.
Other Benefits to the Manager and the Subadviser
The Board considered potential“fall-out” or ancillary benefits anticipated to be received by the Manager and the Subadviser. The Board concluded that any potential benefits to be derived by the Manager were similar to benefits derived by the Manager in connection with its management of the other affiliated funds managed by the Manager, which are reviewed on an annual basis. The Board also concluded that any potential benefits to be derived by the Subadviser were consistent with those generally derived by subadvisers to the Prudential Retail Funds, and that those benefits are reviewed on an annual basis. The Board concluded that any potential benefits derived by the Manager and the Subadviser were consistent with the types of benefits generally derived by investment managers and subadvisers to funds.
* * *
After full consideration of these and other factors, the Board concluded that the approval of the agreements was in the best interests of the Fund.
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∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgiminvestments.com |
PROXY VOTING |
The Board of Trustees of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
TRUSTEES |
Ellen S. Alberding• Kevin J. Bannon• Scott E. Benjamin• Linda W. Bynoe• Barry H. Evans• Keith F. Hartstein• Laurie Simon Hodrick• Michael S. Hyland• Stuart S. Parker• Brian K. Reid • Grace C.Torres |
OFFICERS |
Stuart S. Parker,President•Scott E. Benjamin,Vice President• Christian J. Kelly,Treasurer and Principal Financial and Accounting Officer• Raymond A. O’Hara,Chief Legal Officer• Chad A. Earnst,Chief Compliance Officer• Dino Capasso,Deputy Chief Compliance Officer• Charles H. Smith,Anti-Money Laundering Compliance Officer• Andrew R. French,Secretary•Jonathan D. Shain,Assistant Secretary• Claudia DiGiacomo,Assistant Secretary• Diana N. Huffman,Assistant Secretary•Peter Parrella,Assistant Treasurer• Lana Lomuti,Assistant Treasurer• Linda McMullin,Assistant Treasurer• Kelly A. Coyne,Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISER | PGIM Fixed Income | 655 Broad Street Newark, NJ 07102 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | Brown Brothers Harriman & Co. | 50 Post Office Square Boston, MA 02110 | ||
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TRANSFER AGENT | Brown Brothers Harriman & Co. | 50 Post Office Square Boston, MA 02110 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website atpgiminvestments.com or by calling(800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your fund documents online, go topgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, PGIM Active High Yield Bond ETF, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’sForms N-Q are available on the Commission’s website atsec.gov. Beginning with reporting periods on or after March 31, 2019, Form N-PORT will replace Form N-Q. Form N-PORT will be filed with the Securities and Exchange Commission quarterly, and each Fund’s full portfolio holdings as of its first and third quarters of each fiscal year will be made publicly available 60 days after the end of each quarter. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the month. |
Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM HIGH YIELD BOND ETF
TICKER SYMBOL | PHYL |
ETF1001E2
PGIM QMA STRATEGIC ALPHA ETFs
PGIM QMA Strategic Alpha Large-Cap Core ETF | PQLC | |
PGIM QMA Strategic Alpha Small-Cap Growth ETF | PQSG | |
PGIM QMA Strategic Alpha Small-Cap Value ETF | PQSV | |
PGIM QMA Strategic Alpha International Equity ETF | PQIN |
SEMIANNUAL REPORT
FEBRUARY 28, 2019
COMING SOON: PAPERLESS SHAREHOLDER REPORTS
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds’ annual and semiannual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website (pgiminvestments.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank).
You may elect to receive all future reports in paper free of charge. You should contact your financial intermediary or follow instructions included with this notice to elect to continue to receive paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account.
To enroll in e-delivery, go to pgiminvestments.com/edelivery
Objective: To seek long-term growth of capital |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Funds’ portfolio holdings are for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of February 28, 2019 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Exchange-traded funds are distributed by Prudential Investment Management Services LLC (PIMS), member SIPC. QMA is the primary business name of QMA LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM), a Prudential Financial company and registered investment adviser.© 2019 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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PGIM QMA Strategic Alpha ETFs | 3 |
This Page Intentionally Left Blank
Dear Shareholder:
We hope you find the semiannual report for the PGIM QMA Strategic Alpha ETFs informative and useful. The report covers performance for each of the Funds for the period beginning with each Fund’s inception date and ending February 28, 2019.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM QMA Strategic Alpha ETFs
April 15, 2019
PGIM QMA Strategic Alpha ETFs | 5 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Your Fund’s Performance(unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website atpgiminvestments.com or by calling (800) 225-1852.
Total Returns as of 2/28/19 | ||
Since Inception (%) | ||
Net Asset Value (NAV) | 2.04 (10/17/18) | |
Market Price* | 2.08 (10/17/18) | |
S&P 500 Index | 3.48 | |
Lipper Large-Cap Core Funds Average | 3.48 |
Source: PGIM Investments LLC and Lipper Inc.
*The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated. The first day of secondary market trading is typically several days after the date on which the Fund commenced investment operations; therefore, the NAV of the Fund is used as a proxy for the period from inception of investment operations to the first day of secondary market trading to calculate the Market Price returns.
Since inception returns for the Index and the Lipper Average are measured from the closest month-end to the Fund’s inception date.
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the sale or redemption of Fund shares.
Market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions, if any, have been reinvested in the Fund at market price and NAV, respectively.
Benchmark Definitions
S&P 500 Index—The S&P 500 Index is an unmanaged index of over 500 stocks of large public US companies. It gives a broad look at how stock prices in the United States have performed.
Lipper Large-Cap Core Funds Average—The Lipper Large-Cap Core Funds Average includes funds that invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) above Lipper’s US Diversified Equity large-cap floor, have more latitude in the companies in which they invest, and typically have average characteristics compared to the S&P 500 Index.
Investors cannot invest directly in an index or average. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses of a mutual fund, but not sales charges or taxes.
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Presentation of Fund Holdings
Five Largest Holdings expressed as a percentage of net assets as of 2/28/19 (%) | ||||
Western Digital Corp.,Technology Hardware, Storage & Peripherals | 0.4 | |||
KLA-Tencor Corp.,Semiconductors &Semiconductor Equipment | 0.4 | |||
Estee Lauder Cos., Inc. (The),PersonalProducts | 0.4 | |||
Danaher Corp.,Health Care Equipment & Supplies | 0.4 | |||
Monster Beverage Corp.,Beverages | 0.4 |
Holdings reflect only long-term investments and are subject to change.
Five Largest Industries expressed as a percentage of net assets as of 2/28/19 (%) | ||||
Equity Real Estate Investment Trusts (REITs) | 6.2 | |||
Banks | 5.8 | |||
Health Care Equipment & Supplies | 4.2 | |||
Specialty Retail | 3.8 | |||
Health Care Providers & Services | 3.5 |
Industry weightings reflect onlylong-term investments and are subject to change.
PGIM QMA Strategic Alpha ETFs | 7 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Your Fund’s Performance(unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website atpgiminvestments.com or by calling (800) 225-1852.
Total Returns as of 2/28/19 | ||
Since Inception (%) | ||
Net Asset Value (NAV) | 3.94 (11/13/18) | |
Market Price* | 3.97 (11/13/18) | |
Russell 2000 Growth Index | 6.52 | |
Lipper Small-Cap Growth Funds Average | 6.94 |
Source: PGIM Investments LLC and Lipper Inc.
*The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated. The first day of secondary market trading is typically several days after the date on which the Fund commenced investment operations; therefore, the NAV of the Fund is used as a proxy for the period from inception of investment operations to the first day of secondary market trading to calculate the market price returns.
Since inception returns for the Index and the Lipper Average are measured from the closest month-end to the Fund’s inception date.
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the sale or redemption of Fund shares.
Market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions, if any, have been reinvested in the Fund at market price and NAV, respectively.
Benchmark Definitions
Russell 2000 Growth Index—The Russell 2000 Growth Index is unmanaged and comprises securities in the Russell 2000 Index with a higher-than-average growth orientation. Companies in this index generally have high price-to-book and price-to-earnings ratios. London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”).© LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. Russell® is a trade mark of the relevant LSE Group companies and is/are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
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Lipper Small-Cap Growth Funds Average—The Lipper Small-Cap Growth Funds Average includes funds that invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) below Lipper’s USDE small-cap ceiling. Small-cap growth funds typically have above-average characteristics compared to the S&P SmallCap 600 Index. The S&P SmallCap 600 Index is generally considered representative of the small-cap segment of the US equity market.
Investors cannot invest directly in an index or average. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses of a mutual fund, but not sales charges or taxes.
Presentation of Fund Holdings
Five Largest Holdings expressed as a percentage of net assets as of 2/28/19 (%) | ||||
Telaria, Inc.,Software | 0.3 | |||
Horizon Pharma PLC,Pharmaceuticals | 0.2 | |||
Solid Biosciences, Inc.,Biotechnology | 0.2 | |||
Corvus Pharmaceuticals, Inc.,Biotechnology | 0.2 | |||
DMC Global, Inc.,Machinery | 0.2 |
Holdings reflect only long-term investments and are subject to change.
Five Largest Industries expressed as a percentage of net assets as of 2/28/19 (%) | ||||
Biotechnology | 8.5 | |||
Software | 6.5 | |||
Banks | 6.1 | |||
Health Care Equipment & Supplies | 4.9 | |||
Machinery | 4.6 |
Industry weightings reflect onlylong-term investments and are subject to change.
PGIM QMA Strategic Alpha ETFs | 9 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Your Fund’s Performance(unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website atpgiminvestments.com or by calling (800) 225-1852.
Total Returns as of 2/28/19 | ||
Since Inception (%) | ||
Net Asset Value (NAV) | 1.62 (11/13/18) | |
Market Price* | 1.73 (11/13/18) | |
Russell 2000 Value Index | 2.95 | |
Lipper Small-Cap Value Funds Average | 3.08 |
Source: PGIM Investments LLC and Lipper Inc.
*The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated. The first day of secondary market trading is typically several days after the date on which the Fund commenced investment operations; therefore, the NAV of the Fund is used as a proxy for the period from inception of investment operations to the first day of secondary market trading to calculate the market price returns.
Since inception returns for the Index and the Lipper Average are measured from the closest month-end to the Fund’s inception date.
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the sale or redemption of Fund shares.
Market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions, if any, have been reinvested in the Fund at market price and NAV, respectively.
Benchmark Definitions
Russell 2000 Value Index—The Russell 2000 Value Index is unmanaged and comprises securities in the Russell 2000 Index with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios. London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”).© LSE Group 2019. FTSE Russell is a trading name of certain of the LSE Group companies. Russell® is a trade mark of the relevant LSE Group companies and is/are used by any other LSE Group company under license. All rights in the FTSE Russell indexes or data vest in the relevant LSE Group company which owns the index or the data. Neither LSE Group nor its licensors accept any liability for any errors or omissions in the indexes or data and no party may rely on any indexes or data contained in this communication. No further distribution of data from the LSE Group is permitted without the relevant LSE Group company’s express written consent. The LSE Group does not promote, sponsor or endorse the content of this communication.
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Lipper Small-Cap Value Funds Average—The Lipper Small-Cap Value Funds Average includes funds that invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) below Lipper’s US Diversified Equity small-cap ceiling and typically have below-average characteristics compared to the S&P SmallCap 600 Index. The S&P SmallCap 600 Index is generally considered representative of the small-cap segment of the US equity market.
Investors cannot invest directly in an index or average. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses of a mutual fund, but not sales charges or taxes.
Presentation of Fund Holdings
Five Largest Holdings expressed as a percentage of net assets as of 2/28/19 (%) | ||||
Telaria, Inc.,Software | 0.2 | |||
Triple-S Management Corp.,Health Care Providers & Services | 0.2 | |||
Mallinckrodt PLC,Pharmaceuticals | 0.2 | |||
Gray Television, Inc.,Media | 0.2 | |||
Dillard’s, Inc.,Multiline Retail | 0.2 |
Holdings reflect only long-term investments and are subject to change.
Five Largest Industries expressed as a percentage of net assets as of 2/28/19 (%) | ||||
Banks | 18.8 | |||
Equity Real Estate Investment Trusts (REITs) | 9.1 | |||
Specialty Retail | 4.4 | |||
Thrifts & Mortgage Finance | 4.0 | |||
Insurance | 3.8 |
Industry weightings reflect onlylong-term investments and are subject to change.
PGIM QMA Strategic Alpha ETFs | 11 |
PGIM QMA Strategic Alpha International Equity ETF
Your Fund’s Performance(unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website atpgiminvestments.com or by calling (800) 225-1852.
Total Returns as of 2/28/19 | ||
Since Inception (%) | ||
Net Asset Value (NAV) | 3.19 (12/4/18) | |
Market Price* | 3.84 (12/4/18) | |
MSCI EAFE Index | 3.98 | |
Lipper International Multi-Cap Core Funds Average | 3.74 |
Source: PGIM Investments LLC and Lipper Inc.
*The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated. The first day of secondary market trading is typically several days after the date on which the Fund commenced investment operations; therefore, the NAV of the Fund is used as a proxy for the period from inception of investment operations to the first day of secondary market trading to calculate the market price returns.
Since inception returns for the Index and the Lipper Average are measured from the closest month-end to the Fund’s inception date.
The returns in the table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the sale or redemption of Fund shares.
Market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions, if any, have been reinvested in the Fund at market price and NAV, respectively.
Benchmark Definitions
MSCI EAFE Index—The MSCI EAFE Index is a free-float-adjusted market capitalization index that is designed to measure the equity performance of developed markets, excluding the US & Canada.
Lipper International Multi-Cap Core Funds Average—The Lipper International Multi-Cap Core Funds Average includes funds that invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. International multi-cap core funds typically have average characteristics compared to the MSCI EAFE Index.
Investors cannot invest directly in an index or average. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses of a mutual fund, but not sales charges or taxes.
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Presentation of Fund Holdings
Five Largest Holdings expressed as a percentage of net assets as of 2/28/19 (%) | ||||
Takeda Pharmaceutical Co. Ltd.,Pharmaceuticals | 0.3 | |||
Fortescue Metals Group Ltd.,Metals & Mining | 0.3 | |||
Taylor Wimpey PLC,Household Durables | 0.3 | |||
Straumann Holding AG,Health Care Equipment & Supplies | 0.2 | |||
Rio Tinto Ltd.,Metals & Mining | 0.2 |
Holdings reflect only long-term investments and are subject to change.
Five Largest Industries expressed as a percentage of net assets as of 2/28/19 (%) | ||||
Banks | 6.6 | |||
Machinery | 5.1 | |||
Chemicals | 5.1 | |||
Real Estate Management & Development | 4.5 | |||
Equity Real Estate Investment Trusts (REITs) | 4.1 |
Industry weightings reflect onlylong-term investments and are subject to change.
PGIM QMA Strategic Alpha ETFs | 13 |
As a shareholder of a Fund, you incur ongoing costs, including investment management fees. This example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
The example is based on an investment of $1,000 held through the period ended February 28, 2019. The example is for illustrative purposes only.
Actual Expenses
The information under each column in the line entitled “Actual” on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The information under each column in the line entitled “Hypothetical” on the following page provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, brokerage commissions paid on purchases and sales of Fund shares. Therefore, the ending account values and expenses paid for the period are useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
14 | Visit our website at pgiminvestments.com |
PGIM QMA Strategic Alpha Large-Cap Core ETF | Beginning Account Value September 1, 2018 | Ending Account Value February 28, 2019 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||
Actual** | $ | 1,000.00 | $ | 1,020.40 | 0.17 | % | $ | 0.63 | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.95 | 0.17 | % | $ | 0.85 |
* Fund expenses (net of fee waivers or subsidies, if any) are equal to the annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended February 28, 2019, and divided by the 365 days in the Fund’s fiscal year ending August 31, 2019 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
** “Actual” expenses are calculated using the 134-day period ended February 28, 2019 due to the Fund’s inception date of October 17, 2018.
PGIM QMA Strategic Alpha Small-Cap Growth ETF | Beginning Account Value September 1, 2018 | Ending Account Value February 28, 2019 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||
Actual** | $ | 1,000.00 | $ | 1,039.40 | 0.29 | % | $ | 0.87 | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.36 | 0.29 | % | $ | 1.45 |
* Fund expenses (net of fee waivers or subsidies, if any) are equal to the annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended February 28, 2019, and divided by the 365 days in the Fund’s fiscal year ending August 31, 2019 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
** “Actual” expenses are calculated using the 107-day period ended February 28, 2019 due to the Fund’s inception date of November 13, 2018.
PGIM QMA Strategic Alpha Small-Cap Value ETF | Beginning Account September 1, 2018 | Ending Account February 28, 2019 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||
Actual** | $ | 1,000.00 | $ | 1,016.20 | 0.29 | % | $ | 0.86 | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.36 | 0.29 | % | $ | 1.45 |
* Fund expenses (net of fee waivers or subsidies, if any) are equal to the annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended February 28, 2019, and divided by the 365 days in the Fund’s fiscal year ending August 31, 2019 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
** “Actual” expenses are calculated using the 107-day period ended February 28, 2019 due to the Fund’s inception date of November 13, 2018.
PGIM QMA Strategic Alpha ETFs | 15 |
Fees and Expenses(continued)
PGIM QMA Strategic Alpha International Equity ETF | Beginning Account Value September 1, 2018 | Ending Account Value February 28, 2019 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||
Actual** | $ | 1,000.00 | $ | 1,031.90 | 0.29 | % | $ | 0.69 | ||||||||
Hypothetical | $ | 1,000.00 | $ | 1,023.36 | 0.29 | % | $ | 1.45 |
* Fund expenses (net of fee waivers or subsidies, if any) are equal to the annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended February 28, 2019, and divided by the 365 days in the Fund’s fiscal year ending August 31, 2019 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
** “Actual” expenses are calculated using the 85-day period ended February 28, 2019 due to the Fund’s inception date of December 4, 2018.
16 | Visit our website at pgiminvestments.com |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Schedule of Investments (unaudited)
as of February 28, 2019
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.2% | ||||||||
COMMON STOCKS 99.2% | ||||||||
Aerospace & Defense 1.8% | ||||||||
Huntington Ingalls Industries, Inc. | 205 | $ | 42,929 | |||||
L3 Technologies, Inc. | 227 | 48,067 | ||||||
Raytheon Co. | 248 | 46,252 | ||||||
Textron, Inc. | 829 | 45,015 | ||||||
United Technologies Corp. | 329 | 41,345 | ||||||
|
| |||||||
223,608 | ||||||||
Air Freight & Logistics 1.0% | ||||||||
CH Robinson Worldwide, Inc. | 463 | 41,846 | ||||||
Expeditors International of Washington, Inc. | 593 | 44,445 | ||||||
FedEx Corp. | 233 | 42,173 | ||||||
|
| |||||||
128,464 | ||||||||
Airlines 1.3% | ||||||||
Alaska Air Group, Inc. | 626 | 38,624 | ||||||
Delta Air Lines, Inc. | 821 | 40,705 | ||||||
Southwest Airlines Co. | 797 | 44,664 | ||||||
United Continental Holdings, Inc.* | 465 | 40,832 | ||||||
|
| |||||||
164,825 | ||||||||
Auto Components 0.3% | ||||||||
BorgWarner, Inc. | 1,006 | 40,854 | ||||||
Automobiles 1.0% | ||||||||
Ford Motor Co. | 4,823 | 42,298 | ||||||
General Motors Co. | 1,053 | 41,572 | ||||||
Harley-Davidson, Inc. | 1,081 | 40,127 | ||||||
|
| |||||||
123,997 | ||||||||
Banks 5.8% | ||||||||
Bank of America Corp. | 1,529 | 44,463 | ||||||
BB&T Corp. | 926 | 47,198 | ||||||
Citigroup, Inc. | 625 | 39,988 | ||||||
Citizens Financial Group, Inc. | 1,221 | 45,104 | ||||||
Comerica, Inc. | 506 | 44,078 | ||||||
Fifth Third Bancorp | 1,625 | 44,817 | ||||||
Huntington Bancshares, Inc. | 3,054 | 44,008 | ||||||
JPMorgan Chase & Co. | 401 | 41,848 | ||||||
KeyCorp | 2,348 | 41,466 | ||||||
M&T Bank Corp. | 247 | 42,746 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 17 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont’d.) | ||||||||
People’s United Financial, Inc. | 2,520 | $ | 44,755 | |||||
PNC Financial Services Group, Inc. (The) | 349 | 43,981 | ||||||
Regions Financial Corp. | 2,533 | 41,541 | ||||||
SunTrust Banks, Inc. | 705 | 45,733 | ||||||
US Bancorp | 855 | 44,195 | ||||||
Wells Fargo & Co. | 811 | 40,461 | ||||||
Zions Bancorp NA | 905 | 46,246 | ||||||
|
| |||||||
742,628 | ||||||||
Beverages 1.8% | ||||||||
Brown-Forman Corp. (Class B Stock) | 887 | 43,898 | ||||||
Coca-Cola Co. (The) | 857 | 38,856 | ||||||
Molson Coors Brewing Co. (Class B Stock) | 652 | 40,202 | ||||||
Monster Beverage Corp.* | 821 | 52,404 | ||||||
PepsiCo, Inc. | 406 | 46,950 | ||||||
|
| |||||||
222,310 | ||||||||
Biotechnology 1.6% | ||||||||
Amgen, Inc. | 216 | 41,057 | ||||||
Biogen, Inc.* | 129 | 42,313 | ||||||
Gilead Sciences, Inc. | 571 | 37,126 | ||||||
Incyte Corp.* | 512 | 44,150 | ||||||
Vertex Pharmaceuticals, Inc.* | 235 | 44,356 | ||||||
|
| |||||||
209,002 | ||||||||
Building Products 1.4% | ||||||||
Allegion PLC | 493 | 44,350 | ||||||
AO Smith Corp. | 896 | 46,529 | ||||||
Fortune Brands Home & Security, Inc. | 891 | 41,984 | ||||||
Johnson Controls International PLC | 1,283 | 45,251 | ||||||
|
| |||||||
178,114 | ||||||||
Capital Markets 3.2% | ||||||||
Affiliated Managers Group, Inc. | 346 | 37,925 | ||||||
Bank of New York Mellon Corp. (The) | 782 | 41,039 | ||||||
BlackRock, Inc. (Class A Stock) | 98 | 43,436 | ||||||
Cboe Global Markets, Inc. | 431 | 41,337 | ||||||
Goldman Sachs Group, Inc. (The) | 198 | 38,947 | ||||||
Intercontinental Exchange, Inc. | 539 | 41,584 | ||||||
Invesco Ltd. | 2,123 | 41,080 | ||||||
Morgan Stanley | 949 | 39,839 |
See Notes to Financial Statements.
18 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Capital Markets (cont’d.) | ||||||||
Northern Trust Corp. | 452 | $ | 42,126 | |||||
State Street Corp. | 530 | 38,091 | ||||||
|
| |||||||
405,404 | ||||||||
Chemicals 1.4% | ||||||||
Air Products & Chemicals, Inc. | 274 | 49,643 | ||||||
Celanese Corp. (Class A Stock) | 419 | 42,860 | ||||||
Eastman Chemical Co. | 519 | 42,916 | ||||||
LyondellBasell Industries NV (Class A Stock) | 446 | 38,142 | ||||||
|
| |||||||
173,561 | ||||||||
Commercial Services & Supplies 0.7% | ||||||||
Cintas Corp. | 223 | 46,072 | ||||||
Waste Management, Inc. | 483 | 48,904 | ||||||
|
| |||||||
94,976 | ||||||||
Communications Equipment 1.4% | ||||||||
Arista Networks, Inc.* | 183 | 52,201 | ||||||
Cisco Systems, Inc. | 951 | 49,233 | ||||||
F5 Networks, Inc.* | 258 | 43,380 | ||||||
Juniper Networks, Inc. | 1,526 | 41,324 | ||||||
|
| |||||||
186,138 | ||||||||
Construction & Engineering 0.4% | ||||||||
Jacobs Engineering Group, Inc. | 666 | 49,137 | ||||||
Consumer Finance 1.4% | ||||||||
American Express Co. | 418 | 45,035 | ||||||
Capital One Financial Corp. | 476 | 39,784 | ||||||
Discover Financial Services | 576 | 41,247 | ||||||
Synchrony Financial | 1,444 | 47,089 | ||||||
|
| |||||||
173,155 | ||||||||
Containers & Packaging 1.4% | ||||||||
International Paper Co. | 896 | 41,055 | ||||||
Packaging Corp. of America | 483 | 46,170 | ||||||
Sealed Air Corp. | 1,085 | 47,328 | ||||||
Westrock Co. | 1,011 | 37,791 | ||||||
|
| |||||||
172,344 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 19 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Distributors 0.7% | ||||||||
Genuine Parts Co. | 449 | $ | 48,842 | |||||
LKQ Corp.* | 1,499 | 41,522 | ||||||
|
| |||||||
90,364 | ||||||||
Diversified Consumer Services 0.3% | ||||||||
H&R Block, Inc. | 1,597 | 38,568 | ||||||
Diversified Telecommunication Services 0.6% | ||||||||
AT&T, Inc. | 1,346 | 41,888 | ||||||
Verizon Communications, Inc. | 709 | 40,356 | ||||||
|
| |||||||
82,244 | ||||||||
Electric Utilities 3.4% | ||||||||
American Electric Power Co., Inc. | 530 | 43,009 | ||||||
Duke Energy Corp. | 471 | 42,230 | ||||||
Entergy Corp. | 469 | 43,772 | ||||||
Evergy, Inc. | 712 | 39,808 | ||||||
Eversource Energy | 599 | 41,816 | ||||||
Exelon Corp. | 876 | 42,565 | ||||||
FirstEnergy Corp. | 1,154 | 47,025 | ||||||
Pinnacle West Capital Corp. | 471 | 44,152 | ||||||
PPL Corp. | 1,413 | 45,456 | ||||||
Southern Co. (The) | 856 | 42,535 | ||||||
|
| |||||||
432,368 | ||||||||
Electrical Equipment 1.4% | ||||||||
AMETEK, Inc. | 594 | 47,271 | ||||||
Eaton Corp. PLC | 543 | 43,315 | ||||||
Emerson Electric Co. | 650 | 44,297 | ||||||
Rockwell Automation, Inc. | 253 | 45,176 | ||||||
|
| |||||||
180,059 | ||||||||
Electronic Equipment, Instruments & Components 1.5% | ||||||||
Amphenol Corp. (Class A Stock) | 505 | 47,455 | ||||||
Corning, Inc. | 1,332 | 46,367 | ||||||
FLIR Systems, Inc. | 898 | 46,202 | ||||||
Keysight Technologies, Inc.* | 582 | 49,127 | ||||||
|
| |||||||
189,151 |
See Notes to Financial Statements.
20 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Energy Equipment & Services 0.6% | ||||||||
Schlumberger Ltd. | 974 | $ | 42,914 | |||||
TechnipFMC PLC | 1,732 | 38,606 | ||||||
|
| |||||||
81,520 | ||||||||
Entertainment 1.3% | ||||||||
Activision Blizzard, Inc. | 851 | 35,861 | ||||||
Electronic Arts, Inc.* | 451 | 43,197 | ||||||
Viacom, Inc. (Class B Stock) | 1,328 | 38,804 | ||||||
Walt Disney Co. (The) | 375 | 42,315 | ||||||
|
| |||||||
160,177 | ||||||||
Equity Real Estate Investment Trusts (REITs) 6.2% | ||||||||
American Tower Corp. | 245 | 43,157 | ||||||
Apartment Investment & Management Co. (Class A Stock) | 834 | 40,808 | ||||||
Boston Properties, Inc. | 370 | 49,095 | ||||||
Duke Realty Corp. | 1,430 | 42,285 | ||||||
Equinix, Inc. | 108 | 45,738 | ||||||
Equity Residential | 577 | 42,519 | ||||||
Essex Property Trust, Inc. | 156 | 43,655 | ||||||
Host Hotels & Resorts, Inc. | 2,244 | 44,005 | ||||||
Kimco Realty Corp. | 2,435 | 42,832 | ||||||
Mid-America Apartment Communities, Inc. | 444 | 45,990 | ||||||
Prologis, Inc. | 683 | 47,851 | ||||||
Regency Centers Corp. | 693 | 45,218 | ||||||
SBA Communications Corp. (Class A Stock)* | 233 | 42,070 | ||||||
Simon Property Group, Inc. | 233 | 42,210 | ||||||
SL Green Realty Corp. | 470 | 42,638 | ||||||
Vornado Realty Trust | 635 | 42,742 | ||||||
Welltower, Inc. | 554 | 41,168 | ||||||
Weyerhaeuser Co. | 1,519 | 37,808 | ||||||
|
| |||||||
781,789 | ||||||||
Food & Staples Retailing 1.3% | ||||||||
Costco Wholesale Corp. | 191 | 41,779 | ||||||
Kroger Co. (The) | 1,393 | 40,857 | ||||||
Walgreens Boots Alliance, Inc. | 571 | 40,649 | ||||||
Walmart, Inc. | 455 | 45,040 | ||||||
|
| |||||||
168,325 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 21 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Food Products 3.4% | ||||||||
Archer-Daniels-Midland Co. | 884 | $ | 37,570 | |||||
General Mills, Inc. | 938 | 44,208 | ||||||
Hershey Co. (The) | 414 | 45,822 | ||||||
Hormel Foods Corp. | 930 | 40,325 | ||||||
JM Smucker Co. (The) | 414 | 43,847 | ||||||
Kellogg Co. | 624 | 35,106 | ||||||
Kraft Heinz Co. (The) | 786 | 26,087 | ||||||
Lamb Weston Holdings, Inc. | 569 | 39,437 | ||||||
McCormick & Co., Inc. | 319 | 43,378 | ||||||
Mondelez International, Inc. (Class A Stock) | 936 | 44,142 | ||||||
Tyson Foods, Inc. (Class A Stock) | 703 | 43,347 | ||||||
|
| |||||||
443,269 | ||||||||
Health Care Equipment & Supplies 4.2% | ||||||||
Abbott Laboratories | 614 | 47,659 | ||||||
Baxter International, Inc. | 608 | 45,436 | ||||||
Becton Dickinson & Co. | 179 | 44,533 | ||||||
Danaher Corp. | 415 | 52,713 | ||||||
DENTSPLY SIRONA, Inc. | 1,001 | 41,802 | ||||||
Hologic, Inc.* | 935 | 44,085 | ||||||
IDEXX Laboratories, Inc.* | 194 | 40,940 | ||||||
Medtronic PLC | 451 | 40,816 | ||||||
ResMed, Inc. | 343 | 35,133 | ||||||
Stryker Corp. | 249 | 46,939 | ||||||
Varian Medical Systems, Inc.* | 320 | 42,995 | ||||||
Zimmer Biomet Holdings, Inc. | 380 | 47,166 | ||||||
|
| |||||||
530,217 | ||||||||
Health Care Providers & Services 3.5% | ||||||||
Anthem, Inc. | 158 | 47,515 | ||||||
Cardinal Health, Inc. | 828 | 44,994 | ||||||
Centene Corp.* | 596 | 36,290 | ||||||
CVS Health Corp. | 591 | 34,178 | ||||||
Henry Schein, Inc.* | 513 | 30,421 | ||||||
Humana, Inc. | 139 | 39,621 | ||||||
Laboratory Corp. of America Holdings* | 298 | 44,176 | ||||||
McKesson Corp. | 326 | 41,454 | ||||||
Quest Diagnostics, Inc. | 474 | 41,025 | ||||||
UnitedHealth Group, Inc. | 160 | 38,755 | ||||||
Universal Health Services, Inc. (Class B Stock) | 309 | 42,898 | ||||||
|
| |||||||
441,327 |
See Notes to Financial Statements.
22 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Health Care Technology 0.3% | ||||||||
Cerner Corp.* | 755 | $ | 42,242 | |||||
Hotels, Restaurants & Leisure 1.3% | ||||||||
Carnival Corp. | 753 | 43,493 | ||||||
McDonald’s Corp. | 223 | 40,996 | ||||||
Norwegian Cruise Line Holdings Ltd.* | 840 | 46,645 | ||||||
Yum! Brands, Inc. | 445 | 42,052 | ||||||
|
| |||||||
173,186 | ||||||||
Household Durables 0.3% | ||||||||
Mohawk Industries, Inc.* | 325 | 44,239 | ||||||
Household Products 1.7% | ||||||||
Church & Dwight Co., Inc. | 598 | 39,348 | ||||||
Clorox Co. (The) | 265 | 41,878 | ||||||
Colgate-Palmolive Co. | 696 | 45,846 | ||||||
Kimberly-Clark Corp. | 353 | 41,241 | ||||||
Procter & Gamble Co. (The) | 445 | 43,855 | ||||||
|
| |||||||
212,168 | ||||||||
Independent Power and Renewable Electricity Producers 0.7% | ||||||||
AES Corp. | 2,839 | 48,916 | ||||||
NRG Energy, Inc. | 982 | 40,930 | ||||||
|
| |||||||
89,846 | ||||||||
Industrial Conglomerates 1.1% | ||||||||
3M Co. | 211 | 43,759 | ||||||
Honeywell International, Inc. | 274 | 42,215 | ||||||
Roper Technologies, Inc. | 153 | 49,518 | ||||||
|
| |||||||
135,492 | ||||||||
Insurance 3.2% | ||||||||
Aflac, Inc. | 852 | 41,867 | ||||||
Allstate Corp. (The) | 459 | 43,320 | ||||||
Everest Re Group Ltd. | 203 | 45,900 | ||||||
Hartford Financial Services Group, Inc. (The) | 935 | 46,152 | ||||||
Lincoln National Corp. | 676 | 42,264 | ||||||
Marsh & McLennan Cos., Inc. | 489 | 45,487 | ||||||
MetLife, Inc. | 994 | 44,919 | ||||||
Travelers Cos., Inc. (The) | 350 | 46,519 | ||||||
Unum Group | 1,199 | 44,795 | ||||||
|
| |||||||
401,223 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 23 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Interactive Media & Services 1.0% | ||||||||
Alphabet, Inc., | ||||||||
(Class A Stock)* | 39 | $ | 43,935 | |||||
(Class C Stock)* | 40 | 44,797 | ||||||
Facebook, Inc. (Class A Stock)* | 275 | 44,399 | ||||||
|
| |||||||
133,131 | ||||||||
Internet & Direct Marketing Retail 1.1% | ||||||||
Booking Holdings, Inc.* | 25 | 42,426 | ||||||
eBay, Inc. | 1,327 | 49,298 | ||||||
Expedia Group, Inc. | 358 | 44,145 | ||||||
|
| |||||||
135,869 | ||||||||
IT Services 2.8% | ||||||||
Accenture PLC (Class A Stock) | 271 | 43,734 | ||||||
Broadridge Financial Solutions, Inc. | 403 | 40,804 | ||||||
Cognizant Technology Solutions Corp. (Class A Stock) | 593 | 42,091 | ||||||
Fidelity National Information Services, Inc. | 416 | 44,990 | ||||||
International Business Machines Corp. | 330 | 45,583 | ||||||
Paychex, Inc. | 633 | 48,754 | ||||||
Total System Services, Inc. | 456 | 43,046 | ||||||
Western Union Co. (The) | 2,248 | 40,172 | ||||||
|
| |||||||
349,174 | ||||||||
Life Sciences Tools & Services 2.2% | ||||||||
Agilent Technologies, Inc. | 569 | 45,201 | ||||||
IQVIA Holdings, Inc.* | 325 | 45,533 | ||||||
Mettler-Toledo International, Inc.* | 76 | 51,749 | ||||||
PerkinElmer, Inc. | 489 | 46,044 | ||||||
Thermo Fisher Scientific, Inc. | 186 | 48,280 | ||||||
Waters Corp.* | 200 | 48,444 | ||||||
|
| |||||||
285,251 | ||||||||
Machinery 2.6% | ||||||||
Cummins, Inc. | 296 | 45,611 | ||||||
Dover Corp. | 524 | 47,438 | ||||||
Illinois Tool Works, Inc. | 304 | 43,800 | ||||||
Ingersoll-Rand PLC | 441 | 46,552 | ||||||
PACCAR, Inc. | 693 | 46,985 | ||||||
Parker-Hannifin Corp. | 264 | 46,506 | ||||||
Pentair PLC | 1,103 | 46,922 | ||||||
|
| |||||||
323,814 |
See Notes to Financial Statements.
24 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Media 1.3% | ||||||||
CBS Corp. (Class B Stock) | 826 | $ | 41,473 | |||||
Comcast Corp. (Class A Stock) | 1,122 | 43,388 | ||||||
Discovery, Inc. (Class C Stock)* | 1,582 | 43,110 | ||||||
Omnicom Group, Inc. | 542 | 41,029 | ||||||
|
| |||||||
169,000 | ||||||||
Metals & Mining 0.7% | ||||||||
Freeport-McMoRan, Inc. | 3,439 | 44,363 | ||||||
Nucor Corp. | 739 | 44,761 | ||||||
|
| |||||||
89,124 | ||||||||
Multiline Retail 1.0% | ||||||||
Kohl’s Corp. | 594 | 40,113 | ||||||
Macy’s, Inc. | 1,629 | 40,383 | ||||||
Target Corp. | 581 | 42,204 | ||||||
|
| |||||||
122,700 | ||||||||
Multi-Utilities 2.2% | ||||||||
Ameren Corp. | 673 | 47,945 | ||||||
CenterPoint Energy, Inc. | 1,365 | 41,141 | ||||||
Consolidated Edison, Inc. | 573 | 47,244 | ||||||
Dominion Energy, Inc. | 603 | 44,676 | ||||||
DTE Energy Co. | 393 | 48,559 | ||||||
Public Service Enterprise Group, Inc. | 810 | 47,636 | ||||||
|
| |||||||
277,201 | ||||||||
Oil, Gas & Consumable Fuels 2.9% | ||||||||
Chevron Corp. | 371 | 44,364 | ||||||
Cimarex Energy Co. | 550 | 39,551 | ||||||
Exxon Mobil Corp. | 536 | 42,360 | ||||||
HollyFrontier Corp. | 732 | 37,478 | ||||||
Kinder Morgan, Inc. | 2,434 | 46,635 | ||||||
Occidental Petroleum Corp. | 596 | 39,425 | ||||||
Phillips 66 | 396 | 38,159 | ||||||
Pioneer Natural Resources Co. | 282 | 39,748 | ||||||
Valero Energy Corp. | 501 | 40,862 | ||||||
|
| |||||||
368,582 | ||||||||
Personal Products 0.4% | ||||||||
Estee Lauder Cos., Inc. (The) (Class A Stock) | 340 | 53,360 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 25 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Pharmaceuticals 2.3% | ||||||||
Allergan PLC | 258 | $ | 35,529 | |||||
Bristol-Myers Squibb Co. | 754 | 38,952 | ||||||
Eli Lilly & Co. | 338 | 42,686 | ||||||
Johnson & Johnson | 319 | 43,588 | ||||||
Merck & Co., Inc. | 533 | 43,328 | ||||||
Pfizer, Inc. | 993 | 43,047 | ||||||
Zoetis, Inc. (Class A Stock) | 475 | 44,759 | ||||||
|
| |||||||
291,889 | ||||||||
Professional Services 0.6% | ||||||||
Robert Half International, Inc. | 665 | 45,346 | ||||||
Verisk Analytics, Inc. (Class A Stock)* | 200 | 25,286 | ||||||
|
| |||||||
70,632 | ||||||||
Real Estate Management & Development 0.4% | ||||||||
CBRE Group, Inc. (Class A Stock)* | 921 | 45,829 | ||||||
Road & Rail 1.0% | ||||||||
CSX Corp. | 619 | 44,983 | ||||||
JB Hunt Transport Services, Inc. | 383 | 41,238 | ||||||
Norfolk Southern Corp. | 254 | 45,542 | ||||||
|
| |||||||
131,763 | ||||||||
Semiconductors & Semiconductor Equipment 3.3% | ||||||||
Analog Devices, Inc. | 454 | 48,560 | ||||||
Applied Materials, Inc. | 1,254 | 48,078 | ||||||
Intel Corp. | 832 | 44,063 | ||||||
KLA-Tencor Corp. | 469 | 54,165 | ||||||
Lam Research Corp. | 285 | 50,186 | ||||||
NVIDIA Corp. | 266 | 41,033 | ||||||
QUALCOMM, Inc. | 736 | 39,295 | ||||||
Skyworks Solutions, Inc. | 584 | 47,689 | ||||||
Texas Instruments, Inc. | 426 | 45,062 | ||||||
|
| |||||||
418,131 | ||||||||
Software 2.7% | ||||||||
ANSYS, Inc.* | 275 | 48,746 | ||||||
Cadence Design Systems, Inc.* | 881 | 50,437 | ||||||
Citrix Systems, Inc. | 419 | 44,204 | ||||||
Intuit, Inc. | 204 | 50,415 | ||||||
Oracle Corp. | 904 | 47,126 | ||||||
Symantec Corp. | 2,111 | 47,476 |
See Notes to Financial Statements.
26 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Software (cont’d.) | ||||||||
Synopsys, Inc.* | 489 | $ | 49,722 | |||||
|
| |||||||
338,126 | ||||||||
Specialty Retail 3.8% | ||||||||
Advance Auto Parts, Inc. | 259 | 41,901 | ||||||
AutoZone, Inc.* | 48 | 45,071 | ||||||
Best Buy Co., Inc. | 697 | 47,981 | ||||||
CarMax, Inc.* | 616 | 38,254 | ||||||
Foot Locker, Inc. | 700 | 41,664 | ||||||
Gap, Inc. (The) | 1,600 | 40,640 | ||||||
Lowe’s Cos., Inc. | 411 | 43,192 | ||||||
O’Reilly Automotive, Inc.* | 126 | 46,867 | ||||||
TJX Cos., Inc. (The) | 778 | 39,904 | ||||||
Tractor Supply Co. | 490 | 46,722 | ||||||
Ulta Beauty, Inc.* | 154 | 48,123 | ||||||
|
| |||||||
480,319 | ||||||||
Technology Hardware, Storage & Peripherals 1.2% | ||||||||
Hewlett Packard Enterprise Co. | 2,811 | 46,044 | ||||||
Seagate Technology PLC | 989 | 46,048 | ||||||
Western Digital Corp. | 1,105 | 55,582 | ||||||
|
| |||||||
147,674 | ||||||||
Textiles, Apparel & Luxury Goods 1.7% | ||||||||
Capri Holdings Ltd.* | 981 | 44,734 | ||||||
NIKE, Inc. (Class B Stock) | 563 | 48,266 | ||||||
PVH Corp. | 375 | 43,065 | ||||||
Ralph Lauren Corp. (Class A Stock) | 374 | 46,814 | ||||||
Tapestry, Inc. | 1,116 | 38,993 | ||||||
|
| |||||||
221,872 | ||||||||
Tobacco 0.7% | ||||||||
Altria Group, Inc. | 856 | 44,863 | ||||||
Philip Morris International, Inc. | 523 | 45,470 | ||||||
|
| |||||||
90,333 | ||||||||
Water Utilities 0.4% | ||||||||
American Water Works Co., Inc. | 484 | 49,184 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 12,599,249 | |||||||
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 27 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SHORT-TERM INVESTMENT 0.6% | ||||||||||||||||
TIME DEPOSIT | ||||||||||||||||
Citibank, NA | 1.750 | % | 03/01/19 | 70 | $ | 70,012 | ||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 99.8% | 12,669,261 | |||||||||||||||
Other assets in excess of liabilities 0.2% | 26,536 | |||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 12,695,797 | ||||||||||||||
|
|
The following abbreviations are used in the semi-annual report:
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
* | Non-income producing security. |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of February 28, 2019 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 223,608 | $ | — | $ | — | ||||||
Air Freight & Logistics | 128,464 | — | — | |||||||||
Airlines | 164,825 | — | — | |||||||||
Auto Components | 40,854 | — | — | |||||||||
Automobiles | 123,997 | — | — | |||||||||
Banks | 742,628 | — | — | |||||||||
Beverages | 222,310 | — | — | |||||||||
Biotechnology | 209,002 | — | — |
See Notes to Financial Statements.
28 |
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Building Products | $ | 178,114 | $ | — | $ | — | ||||||
Capital Markets | 405,404 | — | — | |||||||||
Chemicals | 173,561 | — | — | |||||||||
Commercial Services & Supplies | 94,976 | — | — | |||||||||
Communications Equipment | 186,138 | — | — | |||||||||
Construction & Engineering | 49,137 | — | — | |||||||||
Consumer Finance | 173,155 | — | — | |||||||||
Containers & Packaging | 172,344 | — | — | |||||||||
Distributors | 90,364 | — | — | |||||||||
Diversified Consumer Services | 38,568 | — | — | |||||||||
Diversified Telecommunication Services | 82,244 | — | — | |||||||||
Electric Utilities | 432,368 | — | — | |||||||||
Electrical Equipment | 180,059 | — | — | |||||||||
Electronic Equipment, Instruments & Components | 189,151 | — | — | |||||||||
Energy Equipment & Services | 81,520 | — | — | |||||||||
Entertainment | 160,177 | — | — | |||||||||
Equity Real Estate Investment Trusts (REITs) | 781,789 | — | — | |||||||||
Food & Staples Retailing | 168,325 | — | — | |||||||||
Food Products | 443,269 | — | — | |||||||||
Health Care Equipment & Supplies | 530,217 | — | — | |||||||||
Health Care Providers & Services | 441,327 | — | — | |||||||||
Health Care Technology | 42,242 | — | — | |||||||||
Hotels, Restaurants & Leisure | 173,186 | — | — | |||||||||
Household Durables | 44,239 | — | — | |||||||||
Household Products | 212,168 | — | — | |||||||||
Independent Power and Renewable Electricity Producers | 89,846 | — | — | |||||||||
Industrial Conglomerates | 135,492 | — | — | |||||||||
Insurance | 401,223 | — | — | |||||||||
Interactive Media & Services | 133,131 | — | — | |||||||||
Internet & Direct Marketing Retail | 135,869 | — | — | |||||||||
IT Services | 349,174 | — | — | |||||||||
Life Sciences Tools & Services | 285,251 | — | — | |||||||||
Machinery | 323,814 | — | — | |||||||||
Media | 169,000 | — | — | |||||||||
Metals & Mining | 89,124 | — | — | |||||||||
Multiline Retail | 122,700 | — | — | |||||||||
Multi-Utilities | 277,201 | — | — | |||||||||
Oil, Gas & Consumable Fuels | 368,582 | — | — | |||||||||
Personal Products | 53,360 | — | — | |||||||||
Pharmaceuticals | 291,889 | — | — | |||||||||
Professional Services | 70,632 | — | — | |||||||||
Real Estate Management & Development | 45,829 | — | — | |||||||||
Road & Rail | 131,763 | — | — |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 29 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Semiconductors & Semiconductor Equipment | $ | 418,131 | $ | — | $ | — | ||||||
Software | 338,126 | — | — | |||||||||
Specialty Retail | 480,319 | — | — | |||||||||
Technology Hardware, Storage & Peripherals | 147,674 | — | — | |||||||||
Textiles, Apparel & Luxury Goods | 221,872 | — | — | |||||||||
Tobacco | 90,333 | — | — | |||||||||
Water Utilities | 49,184 | — | — | |||||||||
Time Deposit | — | 70,012 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 12,599,249 | $ | 70,012 | $ | — | ||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of February 28, 2019 were as follows (unaudited):
Equity Real Estate Investment Trusts (REITs) | 6.2 | % | ||
Banks | 5.8 | |||
Health Care Equipment & Supplies | 4.2 | |||
Specialty Retail | 3.8 | |||
Health Care Providers & Services | 3.5 | |||
Electric Utilities | 3.4 | |||
Food Products | 3.4 | |||
Semiconductors & Semiconductor Equipment | 3.3 | |||
Insurance | 3.2 | |||
Capital Markets | 3.2 | |||
Oil, Gas & Consumable Fuels | 2.9 | |||
IT Services | 2.8 | |||
Software | 2.7 | |||
Machinery | 2.6 | |||
Pharmaceuticals | 2.3 | |||
Multi-Utilities | 2.2 | |||
Life Sciences Tools & Services | 2.2 | |||
Aerospace & Defense | 1.8 | |||
Beverages | 1.8 | |||
Household Products | 1.7 | |||
Textiles, Apparel & Luxury Goods | 1.7 | |||
Biotechnology | 1.6 | |||
Electronic Equipment, Instruments & Components | 1.5 | |||
Building Products | 1.4 | |||
Communications Equipment | 1.4 | |||
Electrical Equipment | 1.4 | |||
Containers & Packaging | 1.4 | % | ||
Consumer Finance | 1.4 | |||
Chemicals | 1.4 | |||
Food & Staples Retailing | 1.3 | |||
Entertainment | 1.3 | |||
Hotels, Restaurants & Leisure | 1.3 | |||
Airlines | 1.3 | |||
Media | 1.3 | |||
Technology Hardware, Storage & Peripherals | 1.2 | |||
Industrial Conglomerates | 1.1 | |||
Internet & Direct Marketing Retail | 1.1 | |||
Road & Rail | 1.0 | |||
Interactive Media & Services | 1.0 | |||
Multiline Retail | 1.0 | |||
Air Freight & Logistics | 1.0 | |||
Automobiles | 1.0 | |||
Independent Power and Renewable Electricity Producers | 0.7 | |||
Tobacco | 0.7 | |||
Metals & Mining | 0.7 | |||
Distributors | 0.7 | |||
Commercial Services & Supplies | 0.7 | |||
Energy Equipment & Services | 0.6 | |||
Time Deposit | 0.6 | |||
Professional Services | 0.6 | |||
Diversified Telecommunication Services | 0.6 |
See Notes to Financial Statements.
30 |
Industry Classification (cont’d.) | ||||
Construction & Engineering | 0.4 | % | ||
Personal Products | 0.4 | |||
Water Utilities | 0.4 | |||
Real Estate Management & Development | 0.4 | |||
Health Care Technology | 0.3 | |||
Diversified Consumer Services | 0.3 | |||
Household Durables | 0.3 | % | ||
Auto Components | 0.3 | |||
|
| |||
99.8 | ||||
Other assets in excess of liabilities | 0.2 | |||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 31 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Statement of Assets & Liabilities(unaudited)
as of February 28, 2019
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $12,358,398) | $ | 12,669,261 | ||
Cash | 53 | |||
Dividends receivable | 28,111 | |||
|
| |||
Total assets | 12,697,425 | |||
|
| |||
Liabilities | ||||
Management fee payable | 1,628 | |||
|
| |||
Total Liabilities | 1,628 | |||
|
| |||
Net Assets | $ | 12,695,797 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 250 | ||
Paid-in capital in excess of par | 12,445,655 | |||
|
| |||
12,445,905 | ||||
Total distributable earnings (loss) | 249,892 | |||
|
| |||
Net assets, February 28, 2019 | $ | 12,695,797 | ||
|
| |||
Net asset value, offering price and redemption price per share, | $ | 50.78 | ||
|
|
See Notes to Financial Statements.
32 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Statement of Operations(unaudited)
Period Ended February 28, 2019*
Net Investment Income (Loss) |
| |||
Income |
| |||
Interest income | $ | 1,465 | ||
Unaffiliated dividend income | 98,119 | |||
|
| |||
Total income | 99,584 | |||
|
| |||
Expenses | ||||
Management fee | 7,436 | |||
|
| |||
Total expenses | 7,436 | |||
|
| |||
Net investment income (loss) | 92,148 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments |
| |||
Net realized gain (loss) on: |
| |||
Investment transactions | (97,404 | ) | ||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 310,863 | |||
|
| |||
Net gain (loss) on investment transactions | 213,459 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 305,607 | ||
|
|
* | For the period from October 17, 2018 (commencement of operations) through February 28, 2019. |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 33 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Statement of Changes in Net Assets(unaudited)
Period Ended February 28, 2019* | ||||
Increase (Decrease) in Net Assets | ||||
Operations | ||||
Net investment income (loss) | $ | 92,148 | ||
Net realized gain (loss) on investments | (97,404 | ) | ||
Net change in unrealized appreciation (depreciation) on investments | 310,863 | |||
|
| |||
Net increase (decrease) in net assets resulting from operations | 305,607 | |||
|
| |||
Dividends and Distributions | ||||
Distributions from distributable earnings | (55,715 | ) | ||
|
| |||
Fund share transactions (Net of share conversions) | ||||
Net proceeds from shares sold | 12,445,905 | |||
|
| |||
Net increase (decrease) in net assets from Fund share transactions | 12,445,905 | |||
|
| |||
Total increase (decrease) | 12,695,797 | |||
Net Assets: | ||||
Beginning of period | — | |||
|
| |||
End of period | $ | 12,695,797 | ||
|
|
* | For the period from October 17, 2018 (commencement of operations) through February 28, 2019. |
See Notes to Financial Statements.
34 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments(unaudited)
as of February 28, 2019
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.6% | ||||||||
COMMON STOCKS 99.6% | ||||||||
Aerospace & Defense 0.5% | ||||||||
Moog, Inc. (Class A Stock) | 224 | $ | 21,047 | |||||
National Presto Industries, Inc. | 175 | 19,624 | ||||||
Wesco Aircraft Holdings, Inc.* | 2,564 | 21,768 | ||||||
|
| |||||||
62,439 | ||||||||
Air Freight & Logistics 0.5% | ||||||||
Echo Global Logistics, Inc.* | 830 | 19,937 | ||||||
Forward Air Corp. | 340 | 21,981 | ||||||
Hub Group, Inc. (Class A Stock)* | 448 | 19,255 | ||||||
|
| |||||||
61,173 | ||||||||
Auto Components 0.8% | ||||||||
Dana, Inc. | 1,061 | 20,955 | ||||||
Fox Factory Holding Corp.* | 341 | 21,613 | ||||||
Modine Manufacturing Co.* | 1,342 | 20,170 | ||||||
Stoneridge, Inc.* | 798 | 23,597 | ||||||
Tenneco, Inc. (Class A Stock) | 610 | 21,106 | ||||||
|
| |||||||
107,441 | ||||||||
Banks 6.1% | ||||||||
Allegiance Bancshares, Inc.* | 533 | 20,393 | ||||||
Ameris Bancorp | 520 | 21,200 | ||||||
Bank of NT Butterfield & Son Ltd. (The) | 516 | 21,022 | ||||||
Cadence BanCorp (Class A Stock) | 1,057 | 21,129 | ||||||
Cambridge Bancorp | 259 | 21,494 | ||||||
Carolina Financial Corp. | 614 | 22,485 | ||||||
City Holding Co. | 267 | 21,397 | ||||||
Civista Bancshares, Inc. | 983 | 20,967 | ||||||
ConnectOne Bancorp, Inc. | 979 | 21,117 | ||||||
Customers Bancorp, Inc.* | 1,031 | 22,053 | ||||||
Enterprise Financial Services Corp. | 453 | 20,467 | ||||||
Equity Bancshares, Inc. (Class A Stock)* | 564 | 19,170 | ||||||
Esquire Financial Holdings, Inc.* | 886 | 20,210 | ||||||
FB Financial Corp. | 598 | 21,199 | ||||||
First Foundation, Inc. | 1,381 | 21,060 | ||||||
Hanmi Financial Corp. | 974 | 22,480 | ||||||
HarborOne Bancorp, Inc.* | 1,302 | 21,001 | ||||||
Heritage Commerce Corp. | 1,494 | 20,871 | ||||||
Home BancShares, Inc. | 1,049 | 20,435 | ||||||
HomeTrust Bancshares, Inc. | 756 | 20,586 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 35 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont’d.) | ||||||||
Independent Bank Corp. | 909 | $ | 21,134 | |||||
Independent Bank Group, Inc. | 371 | 21,503 | ||||||
Investar Holding Corp. | 808 | 19,667 | ||||||
Live Oak Bancshares, Inc. | 1,265 | 20,506 | ||||||
Midland States Bancorp, Inc. | 778 | 19,839 | ||||||
National Bank Holdings Corp. (Class A Stock) | 585 | 21,136 | ||||||
Old Line Bancshares, Inc. | 690 | 19,762 | ||||||
Origin Bancorp, Inc. | 559 | 20,158 | ||||||
Pacific Premier Bancorp, Inc. | 688 | 20,537 | ||||||
People’s Utah Bancorp | 721 | 21,169 | ||||||
Preferred Bank | 399 | 20,437 | ||||||
Stock Yards Bancorp, Inc. | 572 | 20,375 | ||||||
TriCo Bancshares | 559 | 22,483 | ||||||
TriState Capital Holdings, Inc.* | 932 | 21,073 | ||||||
Triumph Bancorp, Inc.* | 637 | 21,575 | ||||||
United Community Banks, Inc. | 798 | 22,097 | ||||||
Veritex Holdings, Inc. | 758 | 21,232 | ||||||
Washington Trust Bancorp, Inc. | 398 | 20,855 | ||||||
|
| |||||||
796,274 | ||||||||
Beverages 0.7% | ||||||||
Boston Beer Co., Inc. (The) (Class A Stock)* | 68 | 21,254 | ||||||
Coca-Cola Consolidated, Inc. | 94 | 23,299 | ||||||
Craft Brew Alliance, Inc.* | 1,229 | 20,954 | ||||||
National Beverage Corp. | 289 | 19,823 | ||||||
|
| |||||||
85,330 | ||||||||
Biotechnology 8.5% | ||||||||
Abeona Therapeutics, Inc.* | 3,316 | 23,278 | ||||||
Acorda Therapeutics, Inc.* | 1,581 | 23,304 | ||||||
Aduro Biotech, Inc.* | 5,738 | 24,673 | ||||||
Albireo Pharma, Inc.* | 843 | 23,705 | ||||||
Allena Pharmaceuticals, Inc.* | 3,434 | 24,793 | ||||||
AnaptysBio, Inc.* | 326 | 22,452 | ||||||
Aptinyx, Inc.* | 3,731 | 19,774 | ||||||
Arcus Biosciences, Inc.* | 1,711 | 20,173 | ||||||
Arena Pharmaceuticals, Inc.* | 430 | 21,466 | ||||||
Assembly Biosciences, Inc.* | 899 | 19,230 | ||||||
Athenex, Inc.* | 1,763 | 23,219 | ||||||
Audentes Therapeutics, Inc.* | 822 | 25,170 | ||||||
Avrobio, Inc.* | 1,467 | 24,440 | ||||||
BioSpecifics Technologies Corp.* | 304 | 21,113 |
See Notes to Financial Statements.
36 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Biotechnology (cont’d.) | ||||||||
Cellular Biomedicine Group, Inc.* | 1,207 | $ | 23,078 | |||||
Corvus Pharmaceuticals, Inc.* | 5,411 | 26,189 | ||||||
Eagle Pharmaceuticals, Inc.* | 468 | 23,433 | ||||||
Emergent BioSolutions, Inc.* | 313 | 18,264 | ||||||
Forty Seven, Inc.* | 1,376 | 22,979 | ||||||
G1 Therapeutics, Inc.* | 1,058 | 19,531 | ||||||
Genomic Health, Inc.* | 270 | 20,512 | ||||||
Geron Corp.* | 14,393 | 21,014 | ||||||
GlycoMimetics, Inc.* | 1,676 | 20,598 | ||||||
Intellia Therapeutics, Inc.* | 1,625 | 24,749 | ||||||
Jounce Therapeutics, Inc.* | 4,605 | 20,492 | ||||||
Kezar Life Sciences, Inc.* | 1,020 | 20,757 | ||||||
Kindred Biosciences, Inc.* | 1,992 | 21,553 | ||||||
Kiniksa Pharmaceuticals Ltd. (Class A Stock)* | 1,121 | 20,122 | ||||||
Kura Oncology, Inc.* | 1,427 | 21,747 | ||||||
Minerva Neurosciences, Inc.* | 2,709 | 21,482 | ||||||
Myriad Genetics, Inc.* | �� | 693 | 21,504 | |||||
Pfenex, Inc.* | 5,185 | 23,281 | ||||||
PTC Therapeutics, Inc.* | 635 | 21,933 | ||||||
Puma Biotechnology, Inc.* | 809 | 22,498 | ||||||
REGENXBIO, Inc.* | 463 | 23,951 | ||||||
Repligen Corp.* | 365 | 21,725 | ||||||
Retrophin, Inc.* | 993 | 22,402 | ||||||
Rhythm Pharmaceuticals, Inc.* | 746 | 21,395 | ||||||
Sangamo Therapeutics, Inc.* | 2,477 | 22,318 | ||||||
Savara, Inc.* | 3,148 | 21,658 | ||||||
Solid Biosciences, Inc.* | 2,489 | 26,607 | ||||||
Spectrum Pharmaceuticals, Inc.* | 1,828 | 19,761 | ||||||
Spring Bank Pharmaceuticals, Inc.* | 2,148 | 22,339 | ||||||
Surface Oncology, Inc.* | 4,609 | 19,496 | ||||||
Veracyte, Inc.* | 1,125 | 22,736 | ||||||
Verastem, Inc.* | 6,653 | 20,026 | ||||||
Vericel Corp.* | 1,102 | 20,618 | ||||||
Viking Therapeutics, Inc.* | 2,460 | 20,689 | ||||||
Xencor, Inc.* | 656 | 19,903 | ||||||
Zafgen, Inc.* | 4,473 | 19,994 | ||||||
|
| |||||||
1,098,124 | ||||||||
Building Products 1.9% | ||||||||
Advanced Drainage Systems, Inc. | 766 | 19,472 | ||||||
Apogee Enterprises, Inc. | 546 | 19,487 | ||||||
Builders FirstSource, Inc.* | 1,626 | 22,650 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 37 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Building Products (cont’d.) | ||||||||
Continental Building Products, Inc.* | 713 | $ | 20,556 | |||||
CSW Industrials, Inc.* | 393 | 22,315 | ||||||
Insteel Industries, Inc. | 938 | 21,339 | ||||||
JELD-WEN Holding, Inc.* | 981 | 19,826 | ||||||
Masonite International Corp.* | 376 | 20,849 | ||||||
NCI Building Systems, Inc.* | 2,992 | 21,004 | ||||||
Patrick Industries, Inc.* | 479 | 21,656 | ||||||
Simpson Manufacturing Co., Inc. | 356 | 21,335 | ||||||
Universal Forest Products, Inc. | 651 | 20,161 | ||||||
|
| |||||||
250,650 | ||||||||
Capital Markets 2.6% | ||||||||
Artisan Partners Asset Management, Inc. (Class A Stock) | 830 | 21,829 | ||||||
Blucora, Inc.* | 788 | 21,189 | ||||||
BrightSphere Investment Group PLC | 1,600 | 22,640 | ||||||
Cowen, Inc. (Class A Stock)* | 1,313 | 20,325 | ||||||
Diamond Hill Investment Group, Inc. | 137 | 19,449 | ||||||
Donnelley Financial Solutions, Inc.* | 1,214 | 17,251 | ||||||
Federated Investors, Inc. (Class B Stock) | 733 | 21,807 | ||||||
Greenhill & Co., Inc. | 936 | 22,033 | ||||||
Houlihan Lokey, Inc. (Class A Stock) | 501 | 23,036 | ||||||
Ladenburg Thalmann Financial Services, Inc. | 7,443 | 21,882 | ||||||
Moelis & Co. (Class A Stock) | 501 | 22,350 | ||||||
Piper Jaffray Cos. | 289 | 20,218 | ||||||
PJT Partners, Inc. (Class A Stock) | 475 | 21,959 | ||||||
Pzena Investment Management, Inc. (Class A Stock) | 2,025 | 20,169 | ||||||
Silvercrest Asset Management Group, Inc. (Class A Stock) | 1,423 | 21,331 | ||||||
Westwood Holdings Group, Inc. | 500 | 19,325 | ||||||
|
| |||||||
336,793 | ||||||||
Chemicals 2.5% | ||||||||
Advanced Emissions Solutions, Inc. | 1,790 | 21,158 | ||||||
AdvanSix, Inc.* | 628 | 20,567 | ||||||
Balchem Corp. | 228 | 20,230 | ||||||
Chase Corp. | 218 | 21,048 | ||||||
Ferro Corp.* | 1,075 | 20,844 | ||||||
GCP Applied Technologies, Inc.* | 802 | 24,036 | ||||||
HB Fuller Co. | 416 | 21,000 | ||||||
Ingevity Corp.* | 186 | 21,431 | ||||||
Innophos Holdings, Inc. | 694 | 23,041 | ||||||
Kraton Corp.* | 612 | 21,775 | ||||||
Kronos Worldwide, Inc. | 1,354 | 20,648 |
See Notes to Financial Statements.
38 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Chemicals (cont’d.) | ||||||||
OMNOVA Solutions, Inc.* | 2,685 | $ | 21,883 | |||||
PolyOne Corp. | 624 | 20,355 | ||||||
Quaker Chemical Corp. | 104 | 21,735 | ||||||
Trinseo S.A. | 423 | 21,230 | ||||||
|
| |||||||
320,981 | ||||||||
Commercial Services & Supplies 2.6% | ||||||||
BrightView Holdings, Inc.* | 1,531 | 20,669 | ||||||
Brink’s Co. (The) | 267 | 21,072 | ||||||
Covanta Holding Corp. | 1,310 | 22,244 | ||||||
Deluxe Corp. | 421 | 19,589 | ||||||
Healthcare Services Group, Inc. | 525 | 20,044 | ||||||
Herman Miller, Inc. | 616 | 22,595 | ||||||
HNI Corp. | 544 | 21,015 | ||||||
Kimball International, Inc. (Class B Stock) | 1,285 | 20,162 | ||||||
Knoll, Inc. | 1,071 | 22,662 | ||||||
McGrath RentCorp | 393 | 23,517 | ||||||
Mobile Mini, Inc. | 592 | 21,318 | ||||||
MSA Safety, Inc. | 193 | 19,954 | ||||||
SP Plus Corp.* | 566 | 19,470 | ||||||
Tetra Tech, Inc. | 358 | 21,487 | ||||||
UniFirst Corp. | 141 | 20,279 | ||||||
Viad Corp. | 406 | 23,507 | ||||||
|
| |||||||
339,584 | ||||||||
Communications Equipment 1.8% | ||||||||
Acacia Communications, Inc.* | 449 | 23,954 | ||||||
Applied Optoelectronics, Inc.* | 1,449 | 19,562 | ||||||
CalAmp Corp.* | 1,472 | 20,461 | ||||||
Calix, Inc.* | 2,498 | 20,484 | ||||||
Casa Systems, Inc.* | 1,769 | 18,026 | ||||||
Clearfield, Inc.* | 1,491 | 21,649 | ||||||
Extreme Networks, Inc.* | 2,549 | 20,953 | ||||||
InterDigital, Inc. | 278 | 19,385 | ||||||
NETGEAR, Inc.* | 611 | 21,904 | ||||||
Quantenna Communications, Inc.* | 1,288 | 23,377 | ||||||
Viavi Solutions, Inc.* | 1,618 | 21,244 | ||||||
|
| |||||||
230,999 | ||||||||
Construction & Engineering 1.6% | ||||||||
Comfort Systems USA, Inc. | 407 | 21,823 | ||||||
Dycom Industries, Inc.* | 338 | 15,237 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 39 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Construction & Engineering (cont’d.) | ||||||||
EMCOR Group, Inc. | 279 | $ | 20,124 | |||||
Granite Construction, Inc. | 452 | 21,045 | ||||||
HC2 Holdings, Inc.* | 6,186 | 19,486 | ||||||
MasTec, Inc.* | 477 | 20,597 | ||||||
MYR Group, Inc.* | 650 | 21,801 | ||||||
Orion Group Holdings, Inc.* | 4,744 | 20,162 | ||||||
Primoris Services Corp. | 876 | 20,472 | ||||||
Sterling Construction Co., Inc.* | 1,579 | 23,069 | ||||||
|
| |||||||
203,816 | ||||||||
Construction Materials 0.3% | ||||||||
Summit Materials, Inc. (Class A Stock)* | 1,204 | 20,468 | ||||||
US Concrete, Inc.* | 571 | 22,903 | ||||||
|
| |||||||
43,371 | ||||||||
Consumer Finance 0.8% | ||||||||
Curo Group Holdings Corp.* | 1,992 | 21,952 | ||||||
Enova International, Inc.* | 893 | 22,789 | ||||||
FirstCash, Inc. | 240 | 21,038 | ||||||
Green Dot Corp. (Class A Stock)* | 315 | 20,333 | ||||||
Regional Management Corp.* | 730 | 19,849 | ||||||
|
| |||||||
105,961 | ||||||||
Containers & Packaging 0.3% | ||||||||
Greif, Inc. (Class A Stock) | 526 | 21,145 | ||||||
Myers Industries, Inc. | 1,202 | 22,934 | ||||||
|
| |||||||
44,079 | ||||||||
Distributors 0.2% | ||||||||
Core-Mark Holding Co., Inc. | 718 | 22,624 | ||||||
Diversified Consumer Services 1.0% | ||||||||
Career Education Corp.* | 1,292 | 21,473 | ||||||
Carriage Services, Inc. (Class A Stock) | 1,047 | 21,997 | ||||||
Chegg, Inc.* | 552 | 21,876 | ||||||
Houghton Mifflin Harcourt Co.* | 2,353 | 18,612 | ||||||
Sotheby’s* | 528 | 23,163 | ||||||
Strategic Education, Inc. | 167 | 21,840 | ||||||
|
| |||||||
128,961 |
See Notes to Financial Statements.
40 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Diversified Financial Services 0.2% | ||||||||
Marlin Business Services Corp. | 910 | $ | 21,421 | |||||
Diversified Telecommunication Services 0.2% | ||||||||
Vonage Holdings Corp.* | 2,170 | 22,308 | ||||||
Electric Utilities 0.2% | ||||||||
Spark Energy, Inc. (Class A Stock) | 2,225 | 22,228 | ||||||
Electrical Equipment 1.1% | ||||||||
Allied Motion Technologies, Inc. | 500 | 20,825 | ||||||
Atkore International Group, Inc.* | 883 | 20,397 | ||||||
AZZ, Inc. | 439 | 20,203 | ||||||
EnerSys | 281 | 20,743 | ||||||
Generac Holdings, Inc.* | 384 | 19,799 | ||||||
Thermon Group Holdings, Inc.* | 842 | 20,949 | ||||||
Vicor Corp.* | 568 | 18,051 | ||||||
|
| |||||||
140,967 | ||||||||
Electronic Equipment, Instruments & Components 1.9% | ||||||||
Badger Meter, Inc. | 347 | 20,417 | ||||||
Control4 Corp.* | 1,156 | 20,820 | ||||||
ePlus, Inc.* | 253 | 22,628 | ||||||
Insight Enterprises, Inc.* | 371 | 20,709 | ||||||
Itron, Inc.* | 347 | 18,394 | ||||||
Mesa Laboratories, Inc. | 90 | 20,708 | ||||||
Methode Electronics, Inc. | 718 | 20,147 | ||||||
Napco Security Technologies, Inc.* | 1,016 | 21,834 | ||||||
OSI Systems, Inc.* | 236 | 20,497 | ||||||
PAR Technology Corp.* | 764 | 20,605 | ||||||
Park Electrochemical Corp. | 1,151 | 20,016 | ||||||
Vishay Precision Group, Inc.* | 611 | 21,299 | ||||||
|
| |||||||
248,074 | ||||||||
Energy Equipment & Services 0.7% | ||||||||
Keane Group, Inc.* | 1,916 | 21,114 | ||||||
Liberty Oilfield Services, Inc. (Class A Stock) | 1,252 | 20,508 | ||||||
Mammoth Energy Services, Inc. | 905 | 20,806 | ||||||
ProPetro Holding Corp.* | 1,176 | 23,355 | ||||||
|
| |||||||
85,783 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 41 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Entertainment 0.5% | ||||||||
Glu Mobile, Inc.* | 2,325 | $ | 20,879 | |||||
Rosetta Stone, Inc.* | 1,400 | 22,554 | ||||||
World Wrestling Entertainment, Inc. (Class A Stock) | 245 | 20,506 | ||||||
|
| |||||||
63,939 | ||||||||
Equity Real Estate Investment Trusts (REITs) 3.4% | ||||||||
Americold Realty Trust | 785 | 22,569 | ||||||
Armada Hoffler Properties, Inc. | 1,340 | 20,502 | ||||||
City Office REIT, Inc. | 1,840 | 20,240 | ||||||
Clipper Realty, Inc. | 1,638 | 21,556 | ||||||
Easterly Government Properties, Inc. | 1,178 | 21,180 | ||||||
Essential Properties Realty Trust, Inc. | 1,295 | 21,976 | ||||||
First Industrial Realty Trust, Inc. | 645 | 21,620 | ||||||
Four Corners Property Trust, Inc. | 769 | 21,063 | ||||||
GEO Group, Inc. (The) | 905 | 20,562 | ||||||
Monmouth Real Estate Investment Corp. | 1,545 | 20,487 | ||||||
National Health Investors, Inc. | 273 | 21,302 | ||||||
National Storage Affiliates Trust | 755 | 21,382 | ||||||
Pennsylvania Real Estate Investment Trust | 3,240 | 19,926 | ||||||
PS Business Parks, Inc. | 150 | 22,076 | ||||||
QTS Realty Trust, Inc. (Class A Stock) | 514 | 21,449 | ||||||
Ryman Hospitality Properties, Inc. | 247 | 20,005 | ||||||
Saul Centers, Inc. | 367 | 20,798 | ||||||
Tanger Factory Outlet Centers, Inc. | 986 | 21,288 | ||||||
UMH Properties, Inc. | 1,546 | 21,149 | ||||||
Universal Health Realty Income Trust | 311 | 23,160 | ||||||
Urban Edge Properties | 985 | 19,129 | ||||||
|
| |||||||
443,419 | ||||||||
Food & Staples Retailing 0.5% | ||||||||
BJ’s Wholesale Club Holdings, Inc.* | 904 | 22,889 | ||||||
Performance Food Group Co.* | 544 | 20,960 | ||||||
PriceSmart, Inc. | 339 | 21,920 | ||||||
|
| |||||||
65,769 | ||||||||
Food Products 0.6% | ||||||||
B&G Foods, Inc. | 779 | 19,179 | ||||||
Cal-Maine Foods, Inc. | 471 | 20,771 | ||||||
John B Sanfilippo & Son, Inc. | 318 | 22,095 | ||||||
Lancaster Colony Corp. | 132 | 20,694 | ||||||
|
| |||||||
82,739 |
See Notes to Financial Statements.
42 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Gas Utilities 0.3% | ||||||||
Chesapeake Utilities Corp. | 250 | $ | 22,502 | |||||
New Jersey Resources Corp. | 430 | 20,812 | ||||||
|
| |||||||
43,314 | ||||||||
Health Care Equipment & Supplies 4.9% | ||||||||
Accuray, Inc.* | 4,315 | 20,798 | ||||||
AtriCure, Inc.* | 664 | 21,208 | ||||||
Atrion Corp. | 29 | 22,805 | ||||||
AxoGen, Inc.* | 1,174 | 21,672 | ||||||
Cardiovascular Systems, Inc.* | 609 | 21,540 | ||||||
Cerus Corp.* | 3,205 | 20,865 | ||||||
CONMED Corp. | 300 | 23,070 | ||||||
Cutera, Inc.* | 1,401 | 23,985 | ||||||
Endologix, Inc.* | 40,324 | 21,013 | ||||||
GenMark Diagnostics, Inc.* | 3,102 | 23,854 | ||||||
Globus Medical, Inc. (Class A Stock)* | 444 | 21,618 | ||||||
Haemonetics Corp.* | 239 | 20,762 | ||||||
Heska Corp.* | 218 | 17,830 | ||||||
Integer Holdings Corp.* | 246 | 22,376 | ||||||
IntriCon Corp.* | 770 | 20,728 | ||||||
iRadimed Corp.* | 809 | 20,225 | ||||||
Lantheus Holdings, Inc.* | 923 | 21,091 | ||||||
LivaNova PLC* | 216 | 20,131 | ||||||
Meridian Bioscience, Inc. | 1,225 | 20,911 | ||||||
Merit Medical Systems, Inc.* | 355 | 19,784 | ||||||
Natus Medical, Inc.* | 688 | 19,009 | ||||||
Neogen Corp.* | 345 | 21,376 | ||||||
Nuvectra Corp.* | 1,526 | 19,182 | ||||||
OraSure Technologies, Inc.* | 1,838 | 19,758 | ||||||
Orthofix Medical, Inc.* | 345 | 21,080 | ||||||
Quidel Corp.* | 326 | 21,373 | ||||||
RTI Surgical, Inc.* | 4,619 | 23,003 | ||||||
STAAR Surgical Co.* | 573 | 21,086 | ||||||
Utah Medical Products, Inc. | 236 | 20,032 | ||||||
Varex Imaging Corp.* | 652 | 20,499 | ||||||
|
| |||||||
632,664 | ||||||||
Health Care Providers & Services 2.5% | ||||||||
Addus HomeCare Corp.* | 284 | 19,088 | ||||||
Amedisys, Inc.* | 175 | 21,752 | ||||||
American Renal Associates Holdings, Inc.* | 1,618 | 20,209 | ||||||
AMN Healthcare Services, Inc.* | 398 | 19,904 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 43 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Health Care Providers & Services (cont’d.) | ||||||||
Apollo Medical Holdings, Inc.* | 1,087 | $ | 21,240 | |||||
BioScrip, Inc.* | 5,993 | 19,477 | ||||||
BioTelemetry, Inc.* | 289 | 21,594 | ||||||
Capital Senior Living Corp.* | 3,538 | 17,690 | ||||||
CorVel Corp.* | 320 | 21,536 | ||||||
Ensign Group, Inc. (The) | 395 | 19,533 | ||||||
National Research Corp. | 526 | 20,477 | ||||||
Providence Service Corp. (The)* | 296 | 21,111 | ||||||
RadNet, Inc.* | 1,515 | 20,665 | ||||||
Select Medical Holdings Corp.* | 1,366 | 20,244 | ||||||
Tivity Health, Inc.* | 941 | 20,137 | ||||||
US Physical Therapy, Inc. | 176 | 19,402 | ||||||
|
| |||||||
324,059 | ||||||||
Health Care Technology 1.4% | ||||||||
Allscripts Healthcare Solutions, Inc.* | 1,772 | 18,996 | ||||||
Castlight Health, Inc. (Class B Stock)* | 6,530 | 20,831 | ||||||
Computer Programs & Systems, Inc. | 651 | 21,444 | ||||||
Evolent Health, Inc. (Class A Stock)* | 1,513 | 19,956 | ||||||
HealthStream, Inc. | 815 | 22,657 | ||||||
HMS Holdings Corp.* | 677 | 23,329 | ||||||
NextGen Healthcare, Inc.* | 1,147 | 20,073 | ||||||
Omnicell, Inc.* | 249 | 21,153 | ||||||
Simulations Plus, Inc. | 994 | 20,387 | ||||||
|
| |||||||
188,826 | ||||||||
Hotels, Restaurants & Leisure 2.9% | ||||||||
BJ’s Restaurants, Inc. | 407 | 19,471 | ||||||
Carrols Restaurant Group, Inc.* | 1,803 | 19,274 | ||||||
Cheesecake Factory, Inc. (The) | 410 | 19,393 | ||||||
Churchill Downs, Inc. | 222 | 20,824 | ||||||
Cracker Barrel Old Country Store, Inc. | 124 | 20,087 | ||||||
Dave & Buster’s Entertainment, Inc. | 422 | 21,661 | ||||||
Denny’s Corp.* | 1,184 | 20,673 | ||||||
Fiesta Restaurant Group, Inc.* | 1,351 | 20,360 | ||||||
Jack in the Box, Inc. | 255 | 20,538 | ||||||
Lindblad Expeditions Holdings, Inc.* | 1,556 | 21,146 | ||||||
Marriott Vacations Worldwide Corp. | 221 | 21,512 | ||||||
Monarch Casino & Resort, Inc.* | 475 | 20,829 | ||||||
Nathan’s Famous, Inc. | 288 | 20,471 | ||||||
Potbelly Corp.* | 2,539 | 21,378 | ||||||
RCI Hospitality Holdings, Inc. | 895 | 20,934 |
See Notes to Financial Statements.
44 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Hotels, Restaurants & Leisure (cont’d.) | ||||||||
Ruth’s Hospitality Group, Inc. | 846 | $ | 21,505 | |||||
Texas Roadhouse, Inc. (Class A Stock) | 313 | 19,816 | ||||||
Wingstop, Inc. | 315 | 20,982 | ||||||
|
| |||||||
370,854 | ||||||||
Household Durables 1.9% | ||||||||
Cavco Industries, Inc.* | 147 | 20,349 | ||||||
Hamilton Beach Brands Holding Co. (Class A Stock) | 908 | 22,037 | ||||||
Helen of Troy Ltd.* | 181 | 20,292 | ||||||
Hooker Furniture Corp. | 691 | 21,697 | ||||||
iRobot Corp.* | 177 | 22,136 | ||||||
La-Z-Boy, Inc. | 591 | 20,336 | ||||||
M/I Homes, Inc.* | 768 | 19,999 | ||||||
Meritage Homes Corp.* | 465 | 20,390 | ||||||
Taylor Morrison Home Corp. (Class A Stock)* | 1,276 | 21,399 | ||||||
TopBuild Corp.* | 366 | 21,777 | ||||||
TRI Pointe Group, Inc.* | 1,600 | 20,160 | ||||||
ZAGG, Inc.* | 1,915 | 22,214 | ||||||
|
| |||||||
252,786 | ||||||||
Household Products 0.1% | ||||||||
Central Garden & Pet Co. (Class A Stock)* | 701 | 19,523 | ||||||
Industrial Conglomerates 0.2% | ||||||||
Raven Industries, Inc. | 524 | 20,918 | ||||||
Insurance 1.5% | ||||||||
Ambac Financial Group, Inc.* | 1,108 | 21,905 | ||||||
FedNat Holding Co. | 1,123 | 20,495 | ||||||
Global Indemnity Ltd. | 541 | 20,872 | ||||||
James River Group Holdings Ltd. | 513 | 21,079 | ||||||
MBIA, Inc.* | 2,235 | 22,194 | ||||||
National General Holdings Corp. | 822 | 21,216 | ||||||
United Fire Group, Inc. | 422 | 20,568 | ||||||
United Insurance Holdings Corp. | 1,314 | 21,523 | ||||||
Universal Insurance Holdings, Inc. | 528 | 20,613 | ||||||
|
| |||||||
190,465 | ||||||||
Interactive Media & Services 1.0% | ||||||||
Care.com, Inc.* | 855 | 21,537 | ||||||
Cargurus, Inc. (Class A Stock)* | 503 | 21,493 | ||||||
Liberty TripAdvisor Holdings, Inc. (Class A Stock)* | 1,331 | 20,085 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 45 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Interactive Media & Services (cont’d.) | ||||||||
QuinStreet, Inc.* | 1,567 | $ | 20,982 | |||||
Travelzoo* | 1,483 | 19,679 | ||||||
Yelp, Inc. (Class A Stock)* | 557 | 20,754 | ||||||
|
| |||||||
124,530 | ||||||||
Internet & Direct Marketing Retail 1.2% | ||||||||
1-800-Flowers.com, Inc. (Class A Stock)* | 1,211 | 21,604 | ||||||
Duluth Holdings, Inc. (Class B Stock)* | 839 | 21,311 | ||||||
Gaia, Inc. (Class A Stock)* | 1,805 | 20,072 | ||||||
Groupon, Inc. (Class A Stock)* | 6,297 | 20,591 | ||||||
Liberty Expedia Holdings, Inc. (Class A Stock)* | 495 | 21,929 | ||||||
PetMed Express, Inc. | 931 | 21,460 | ||||||
Shutterstock, Inc. | 548 | 25,389 | ||||||
|
| |||||||
152,356 | ||||||||
IT Services 2.5% | ||||||||
Carbonite, Inc.* | 902 | 20,990 | ||||||
Cass Information Systems, Inc. | 370 | 19,325 | ||||||
CSG Systems International, Inc. | 558 | 23,185 | ||||||
Endurance International Group Holdings, Inc.* | 3,009 | 21,063 | ||||||
ExlService Holdings, Inc.* | 353 | 21,674 | ||||||
Hackett Group, Inc. (The) | 1,302 | 21,171 | ||||||
Information Services Group, Inc.* | 5,034 | 21,697 | ||||||
MAXIMUS, Inc. | 308 | 21,769 | ||||||
NIC, Inc. | 1,225 | 20,935 | ||||||
Perficient, Inc.* | 816 | 23,346 | ||||||
PFSweb, Inc.* | 3,514 | 21,998 | ||||||
PRGX Global, Inc.* | 2,243 | 21,039 | ||||||
ServiceSource International, Inc.* | 21,158 | 19,688 | ||||||
TTEC Holdings, Inc. | 602 | 20,625 | ||||||
Virtusa Corp.* | 446 | 22,510 | ||||||
|
| |||||||
321,015 | ||||||||
Leisure Products 0.9% | ||||||||
Johnson Outdoors, Inc. (Class A Stock) | 317 | 20,808 | ||||||
Malibu Boats, Inc. (Class A Stock)* | 466 | 21,534 | ||||||
Marine Products Corp. | 1,415 | 20,036 | ||||||
MasterCraft Boat Holdings, Inc.* | 939 | 23,165 | ||||||
Nautilus, Inc.* | 2,596 | 16,952 | ||||||
Sturm Ruger & Co., Inc. | 354 | 20,160 | ||||||
|
| |||||||
122,655 |
See Notes to Financial Statements.
46 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Life Sciences Tools & Services 0.6% | ||||||||
Enzo Biochem, Inc.* | 6,439 | $ | 21,764 | |||||
Luminex Corp. | 817 | 20,817 | ||||||
Medpace Holdings, Inc.* | 306 | 16,815 | ||||||
Syneos Health, Inc. (Class A Stock)* | 410 | 17,126 | ||||||
|
| |||||||
76,522 | ||||||||
Machinery 4.6% | ||||||||
Alamo Group, Inc. | 235 | 22,569 | ||||||
Albany International Corp. (Class A Stock) | 281 | 21,792 | ||||||
Altra Industrial Motion Corp. | 625 | 19,881 | ||||||
Barnes Group, Inc. | 360 | 20,905 | ||||||
Blue Bird Corp.* | 1,078 | 20,051 | ||||||
Columbus McKinnon Corp. | 569 | 21,309 | ||||||
Commercial Vehicle Group, Inc.* | 2,573 | 20,584 | ||||||
DMC Global, Inc. | 551 | 25,886 | ||||||
EnPro Industries, Inc. | 294 | 20,165 | ||||||
Evoqua Water Technologies Corp.* | 1,640 | 22,271 | ||||||
Federal Signal Corp. | 883 | 21,704 | ||||||
Franklin Electric Co., Inc. | 384 | 20,433 | ||||||
Global Brass & Copper Holdings, Inc. | 661 | 22,309 | ||||||
Gorman-Rupp Co. (The) | 579 | 19,576 | ||||||
Hillenbrand, Inc. | 428 | 18,956 | ||||||
Kadant, Inc. | 244 | 21,338 | ||||||
Kennametal, Inc. | 534 | 20,126 | ||||||
Lydall, Inc.* | 767 | 21,591 | ||||||
Manitex International, Inc.* | 2,813 | 21,491 | ||||||
Milacron Holdings Corp.* | 1,476 | 20,649 | ||||||
Mueller Industries, Inc. | 629 | 20,788 | ||||||
Mueller Water Products, Inc. (Class A Stock) | 1,879 | 19,617 | ||||||
Omega Flex, Inc. | 296 | 21,874 | ||||||
Rexnord Corp.* | 720 | 19,202 | ||||||
Spartan Motors, Inc. | 2,465 | 22,530 | ||||||
Standex International Corp. | 263 | 21,569 | ||||||
Wabash National Corp. | 1,339 | 19,871 | ||||||
Watts Water Technologies, Inc. (Class A Stock) | 279 | 22,471 | ||||||
|
| |||||||
591,508 | ||||||||
Marine 0.2% | ||||||||
Matson, Inc. | 599 | 21,630 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 47 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Media 1.2% | ||||||||
Central European Media Enterprises Ltd. (Class A Stock)* | 6,076 | $ | 21,327 | |||||
Entravision Communications Corp. (Class A Stock) | 5,289 | 20,892 | ||||||
Hemisphere Media Group, Inc. (Class A Stock)* | 1,481 | 20,586 | ||||||
Loral Space & Communications, Inc.* | 532 | 21,764 | ||||||
Nexstar Media Group, Inc. (Class A Stock) | 256 | 25,019 | ||||||
Sinclair Broadcast Group, Inc. (Class A Stock) | 656 | 23,682 | ||||||
Tribune Publishing Co.* | 1,791 | 21,599 | ||||||
|
| |||||||
154,869 | ||||||||
Metals & Mining 0.6% | ||||||||
Coeur Mining, Inc.* | 3,778 | 18,059 | ||||||
Gold Resource Corp. | 4,344 | 20,373 | ||||||
Ryerson Holding Corp.* | 2,348 | 19,888 | ||||||
Worthington Industries, Inc. | 543 | 21,345 | ||||||
|
| |||||||
79,665 | ||||||||
Multiline Retail 0.2% | ||||||||
Big Lots, Inc. | 673 | 21,220 | ||||||
Oil, Gas & Consumable Fuels 1.9% | ||||||||
Abraxas Petroleum Corp.* | 17,486 | 21,857 | ||||||
Carrizo Oil & Gas, Inc.* | 1,780 | 19,544 | ||||||
CONSOL Energy, Inc.* | 566 | 21,480 | ||||||
CVR Energy, Inc. | 511 | 20,716 | ||||||
Delek US Holdings, Inc. | 540 | 19,105 | ||||||
Evolution Petroleum Corp. | 2,791 | 19,732 | ||||||
Goodrich Petroleum Corp.* | 1,479 | 19,183 | ||||||
Jagged Peak Energy, Inc.* | 1,996 | 18,902 | ||||||
Laredo Petroleum, Inc.* | 5,893 | 20,213 | ||||||
Panhandle Oil & Gas, Inc. (Class A Stock) | 1,305 | 21,428 | ||||||
Renewable Energy Group, Inc.* | 819 | 21,761 | ||||||
Ring Energy, Inc.* | 3,457 | 21,330 | ||||||
|
| |||||||
245,251 | ||||||||
Paper & Forest Products 0.4% | ||||||||
Boise Cascade Co. | 713 | 19,886 | ||||||
Louisiana-Pacific Corp. | 870 | 21,985 | ||||||
Verso Corp. (Class A Stock)* | 778 | 15,288 | ||||||
|
| |||||||
57,159 |
See Notes to Financial Statements.
48 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Personal Products 0.8% | ||||||||
elf Beauty, Inc.* | 2,213 | $ | 17,593 | |||||
Inter Parfums, Inc. | 288 | 21,246 | ||||||
Medifast, Inc. | 168 | 21,408 | ||||||
Natural Health Trends Corp. | 1,499 | 19,067 | ||||||
USANA Health Sciences, Inc.* | 205 | 20,192 | ||||||
�� |
|
| ||||||
99,506 | ||||||||
Pharmaceuticals 3.1% | ||||||||
Aclaris Therapeutics, Inc.* | 3,300 | 21,384 | ||||||
Akorn, Inc.* | 5,185 | 20,999 | ||||||
ANI Pharmaceuticals, Inc.* | 349 | 22,961 | ||||||
Aratana Therapeutics, Inc.* | 4,897 | 19,686 | ||||||
Assertio Therapeutics, Inc.* | 5,025 | 20,804 | ||||||
Collegium Pharmaceutical, Inc.* | 1,402 | 24,661 | ||||||
Corcept Therapeutics, Inc.* | 1,907 | 23,780 | ||||||
Cymabay Therapeutics, Inc.* | 1,956 | 23,100 | ||||||
Durect Corp.* | 28,180 | 22,259 | ||||||
Horizon Pharma PLC* | 944 | 27,385 | ||||||
Intersect ENT, Inc.* | 618 | 21,006 | ||||||
Intra-Cellular Therapies, Inc.* | 1,625 | 22,133 | ||||||
Odonate Therapeutics, Inc.* | 1,221 | 20,122 | ||||||
Pacira Pharmaceuticals, Inc.* | 534 | 21,990 | ||||||
Phibro Animal Health Corp. (Class A Stock) | 693 | 20,305 | ||||||
SIGA Technologies, Inc.* | 3,031 | 20,550 | ||||||
Supernus Pharmaceuticals, Inc.* | 577 | 23,565 | ||||||
Verrica Pharmaceuticals, Inc.* | 1,907 | 21,587 | ||||||
|
| |||||||
398,277 | ||||||||
Professional Services 2.3% | ||||||||
ASGN, Inc.* | 301 | 19,387 | ||||||
BG Staffing, Inc. | 790 | 19,711 | ||||||
CRA International, Inc. | 459 | 22,932 | ||||||
Forrester Research, Inc. | 434 | 21,787 | ||||||
Franklin Covey Co.* | 809 | 21,050 | ||||||
Heidrick & Struggles International, Inc. | 581 | 25,047 | ||||||
ICF International, Inc. | 278 | 20,995 | ||||||
Insperity, Inc. | 180 | 22,729 | ||||||
Kforce, Inc. | 550 | 20,356 | ||||||
Korn Ferry | 449 | 21,907 | ||||||
Mistras Group, Inc.* | 1,223 | 19,299 | ||||||
Resources Connection, Inc. | 1,243 | 21,591 | ||||||
TrueBlue, Inc.* | 835 | 19,222 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 49 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Professional Services (cont’d.) | ||||||||
Willdan Group, Inc.* | 566 | $ | 21,440 | |||||
|
| |||||||
297,453 | ||||||||
Real Estate Management & Development 1.3% | ||||||||
Consolidated-Tomoka Land Co. | 354 | 20,921 | ||||||
Cushman & Wakefield PLC* | 1,246 | 22,839 | ||||||
FRP Holdings, Inc.* | 408 | 20,910 | ||||||
HFF, Inc. (Class A Stock) | 549 | 24,815 | ||||||
Kennedy-Wilson Holdings, Inc. | 1,059 | 22,006 | ||||||
Marcus & Millichap, Inc.* | 555 | 21,434 | ||||||
Newmark Group, Inc. (Class A Stock) | 2,146 | 19,872 | ||||||
Trinity Place Holdings, Inc.* | 5,098 | 20,749 | ||||||
|
| |||||||
173,546 | ||||||||
Road & Rail 0.6% | ||||||||
ArcBest Corp. | 515 | 17,937 | ||||||
Heartland Express, Inc. | 1,046 | 21,014 | ||||||
Marten Transport Ltd. | 1,048 | 19,545 | ||||||
Werner Enterprises, Inc. | 624 | 21,547 | ||||||
|
| |||||||
80,043 | ||||||||
Semiconductors & Semiconductor Equipment 2.1% | ||||||||
Aquantia Corp.* | 2,471 | 19,397 | ||||||
Cabot Microelectronics Corp. | 204 | 23,072 | ||||||
Cirrus Logic, Inc.* | 576 | 23,115 | ||||||
Cohu, Inc. | 1,119 | 20,019 | ||||||
Diodes, Inc.* | 515 | 20,770 | ||||||
Entegris, Inc. | 594 | 20,986 | ||||||
MaxLinear, Inc. (Class A Stock)* | 914 | 22,978 | ||||||
Nanometrics, Inc.* | 713 | 20,292 | ||||||
NVE Corp. | 207 | 21,284 | ||||||
Rudolph Technologies, Inc.* | 927 | 20,932 | ||||||
Semtech Corp.* | 387 | 21,300 | ||||||
SMART Global Holdings, Inc.* | 714 | 20,927 | ||||||
Synaptics, Inc.* | 514 | 21,521 | ||||||
|
| |||||||
276,593 | ||||||||
Software 6.5% | ||||||||
A10 Networks, Inc.* | 3,308 | 23,090 | ||||||
ACI Worldwide, Inc.* | 675 | 21,512 | ||||||
Agilysys, Inc.* | 1,013 | 21,172 |
See Notes to Financial Statements.
50 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Software (cont’d.) | ||||||||
Alarm.com Holdings, Inc.* | 329 | $ | 21,592 | |||||
Altair Engineering, Inc. (Class A Stock)* | 636 | 22,553 | ||||||
Amber Road, Inc.* | 2,343 | 23,055 | ||||||
American Software, Inc. (Class A Stock) | 1,728 | 20,028 | ||||||
Appfolio, Inc. (Class A Stock)* | 308 | 22,262 | ||||||
Blackbaud, Inc. | 295 | 22,786 | ||||||
Blackline, Inc.* | 415 | 21,721 | ||||||
Bottomline Technologies DE, Inc.* | 440 | 21,947 | ||||||
Carbon Black, Inc.* | 1,684 | 22,044 | ||||||
ChannelAdvisor Corp.* | 1,607 | 20,779 | ||||||
Cision Ltd.* | 1,676 | 21,822 | ||||||
CommVault Systems, Inc.* | 309 | 20,824 | ||||||
Ebix, Inc. | 360 | 20,977 | ||||||
Envestnet, Inc.* | 396 | 24,160 | ||||||
ForeScout Technologies, Inc.* | 546 | 22,681 | ||||||
HubSpot, Inc.* | 128 | 21,553 | ||||||
Instructure, Inc.* | 495 | 23,131 | ||||||
j2 Global, Inc. | 247 | 20,997 | ||||||
LivePerson, Inc.* | 815 | 22,787 | ||||||
Majesco* | 2,780 | 20,238 | ||||||
Mitek Systems, Inc.* | 1,926 | 20,820 | ||||||
MobileIron, Inc.* | 4,175 | 21,126 | ||||||
Monotype Imaging Holdings, Inc. | 1,155 | 22,638 | ||||||
OneSpan, Inc.* | 1,057 | 22,514 | ||||||
Progress Software Corp. | 559 | 20,560 | ||||||
QAD, Inc. (Class A Stock) | 503 | 22,766 | ||||||
SailPoint Technologies Holding, Inc.* | 694 | 21,403 | ||||||
SPS Commerce, Inc.* | 195 | 20,822 | ||||||
Telaria, Inc.* | 6,205 | 34,624 | ||||||
Telenav, Inc.* | 3,647 | 21,809 | ||||||
Upland Software, Inc.* | 607 | 21,306 | ||||||
Varonis Systems, Inc.* | 388 | 22,100 | ||||||
Workiva, Inc. (Class A Stock)* | 442 | 21,857 | ||||||
Yext, Inc.* | 1,166 | 21,664 | ||||||
Zix Corp.* | 2,460 | 22,214 | ||||||
|
| |||||||
841,934 | ||||||||
Specialty Retail 3.2% | ||||||||
American Eagle Outfitters, Inc. | 1,076 | 21,950 | ||||||
America’sCar-Mart, Inc.* | 250 | 20,400 | ||||||
Asbury Automotive Group, Inc.* | 303 | 21,752 | ||||||
Boot Barn Holdings, Inc.* | 816 | 23,256 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 51 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Specialty Retail (cont’d.) | ||||||||
Buckle, Inc. (The) | 1,167 | $ | 22,395 | |||||
Children’s Place, Inc. (The) | 233 | 22,265 | ||||||
Conn’s, Inc.* | 947 | 22,340 | ||||||
Five Below, Inc.* | 166 | 19,978 | ||||||
Hudson Ltd. (Class A Stock)* | 1,495 | 22,276 | ||||||
Kirkland’s, Inc.* | 1,923 | 22,461 | ||||||
Lithia Motors, Inc. (Class A Stock) | 246 | 22,206 | ||||||
MarineMax, Inc.* | 1,111 | 21,809 | ||||||
Murphy USA, Inc.* | 259 | 20,142 | ||||||
RTW RetailWinds, Inc.* | 7,053 | 21,441 | ||||||
Sally Beauty Holdings, Inc.* | 1,184 | 21,395 | ||||||
Sleep Number Corp.* | 491 | 21,432 | ||||||
Sportsman’s Warehouse Holdings, Inc.* | 3,396 | 21,361 | ||||||
Winmark Corp. | 134 | 23,081 | ||||||
Zumiez, Inc.* | 843 | 20,822 | ||||||
|
| |||||||
412,762 | ||||||||
Technology Hardware, Storage & Peripherals 0.5% | ||||||||
Avid Technology, Inc.* | 4,326 | 20,548 | ||||||
Cray, Inc.* | 937 | 22,985 | ||||||
Immersion Corp.* | 2,281 | 20,483 | ||||||
|
| |||||||
64,016 | ||||||||
Textiles, Apparel & Luxury Goods 1.1% | ||||||||
Crocs, Inc.* | 805 | 20,672 | ||||||
Deckers Outdoor Corp.* | 155 | 22,932 | ||||||
Fossil Group, Inc.* | 1,396 | 21,833 | ||||||
G-III Apparel Group Ltd.* | 587 | 20,903 | ||||||
Oxford Industries, Inc. | 265 | 20,943 | ||||||
Steven Madden Ltd. | 639 | 21,081 | ||||||
Superior Group of Cos., Inc. | 1,203 | 20,908 | ||||||
|
| |||||||
149,272 | ||||||||
Thrifts & Mortgage Finance 2.0% | ||||||||
Essent Group Ltd.* | 513 | 22,131 | ||||||
Federal Agricultural Mortgage Corp. (Class C Stock) | 290 | 23,742 | ||||||
FS Bancorp, Inc. | 441 | 22,866 | ||||||
Greene County Bancorp, Inc. | 662 | 20,853 | ||||||
Hingham Institution for Savings | 114 | 22,321 | ||||||
Kearny Financial Corp. | 1,554 | 21,119 | ||||||
Merchants Bancorp | 888 | 18,515 | ||||||
Meridian Bancorp, Inc. | 1,288 | 20,982 |
See Notes to Financial Statements.
52 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Thrifts & Mortgage Finance (cont’d.) | ||||||||
Meta Financial Group, Inc. | 818 | $ | 19,100 | |||||
NMI Holdings, Inc. (Class A Stock)* | 858 | 20,721 | ||||||
Sterling Bancorp, Inc. | 2,201 | 22,208 | ||||||
Walker & Dunlop, Inc. | 372 | 20,758 | ||||||
|
| |||||||
255,316 | ||||||||
Tobacco 0.1% | ||||||||
Vector Group Ltd. | 1,717 | 20,123 | ||||||
Trading Companies & Distributors 1.8% | ||||||||
Applied Industrial Technologies, Inc. | 352 | 20,465 | ||||||
Beacon Roofing Supply, Inc.* | 567 | 20,565 | ||||||
BMC Stock Holdings, Inc.* | 1,270 | 24,295 | ||||||
CAI International, Inc.* | 919 | 21,652 | ||||||
DXP Enterprises, Inc.* | 583 | 20,621 | ||||||
General Finance Corp.* | 2,066 | 22,313 | ||||||
GMS, Inc.* | 1,028 | 20,097 | ||||||
Kaman Corp. | 338 | 20,814 | ||||||
Rush Enterprises, Inc., | ||||||||
(Class A Stock) | 490 | 20,541 | ||||||
(Class B Stock) | 549 | 22,674 | ||||||
Systemax, Inc. | 863 | 17,484 | ||||||
|
| |||||||
231,521 | ||||||||
Water Utilities 1.1% | ||||||||
American States Water Co. | 318 | 22,619 | ||||||
California Water Service Group | 407 | 21,172 | ||||||
Global Water Resources, Inc. | 2,220 | 21,112 | ||||||
Middlesex Water Co. | 365 | 21,488 | ||||||
Pure Cycle Corp.* | 1,900 | 19,266 | ||||||
SJW Group | 323 | 19,758 | ||||||
York Water Co. (The) | 645 | 23,510 | ||||||
|
| |||||||
148,925 | ||||||||
Wireless Telecommunication Services 0.1% | ||||||||
Shenandoah Telecommunications Co. | 458 | 20,354 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | �� | 12,916,677 | ||||||
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 53 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SHORT-TERM INVESTMENT 0.3% |
| |||||||||||||||
TIME DEPOSIT | ||||||||||||||||
Citibank, NA | 1.750 | % | 03/01/19 | 43 | $ | 43,072 | ||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 99.9% |
| 12,959,749 | ||||||||||||||
Other assets in excess of liabilities 0.1% |
| 6,895 | ||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% |
| $ | 12,966,644 | |||||||||||||
|
|
The following abbreviations are used in the semi-annual report:
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
* | Non-income producing security. |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of February 28, 2019 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 62,439 | $ | — | $ | — | ||||||
Air Freight & Logistics | 61,173 | — | — | |||||||||
Auto Components | 107,441 | — | — | |||||||||
Banks | 796,274 | — | — | |||||||||
Beverages | 85,330 | — | — | |||||||||
Biotechnology | 1,098,124 | — | — | |||||||||
Building Products | 250,650 | — | — |
See Notes to Financial Statements.
54 |
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Capital Markets | $ | 336,793 | $ | — | $ | — | ||||||
Chemicals | 320,981 | — | — | |||||||||
Commercial Services & Supplies | 339,584 | — | — | |||||||||
Communications Equipment | 230,999 | — | — | |||||||||
Construction & Engineering | 203,816 | — | — | |||||||||
Construction Materials | 43,371 | — | — | |||||||||
Consumer Finance | 105,961 | — | — | |||||||||
Containers & Packaging | 44,079 | — | — | |||||||||
Distributors | 22,624 | — | — | |||||||||
Diversified Consumer Services | 128,961 | — | — | |||||||||
Diversified Financial Services | 21,421 | — | — | |||||||||
Diversified Telecommunication Services | 22,308 | — | — | |||||||||
Electric Utilities | 22,228 | — | — | |||||||||
Electrical Equipment | 140,967 | — | — | |||||||||
Electronic Equipment, Instruments & Components | 248,074 | — | — | |||||||||
Energy Equipment & Services | 85,783 | — | — | |||||||||
Entertainment | 63,939 | — | — | |||||||||
Equity Real Estate Investment Trusts (REITs) | 443,419 | — | — | |||||||||
Food & Staples Retailing | 65,769 | — | — | |||||||||
Food Products | 82,739 | — | — | |||||||||
Gas Utilities | 43,314 | — | — | |||||||||
Health Care Equipment & Supplies | 632,664 | — | — | |||||||||
Health Care Providers & Services | 324,059 | — | — | |||||||||
Health Care Technology | 188,826 | — | — | |||||||||
Hotels, Restaurants & Leisure | 370,854 | — | — | |||||||||
Household Durables | 252,786 | — | — | |||||||||
Household Products | 19,523 | — | — | |||||||||
Industrial Conglomerates | 20,918 | — | — | |||||||||
Insurance | 190,465 | — | — | |||||||||
Interactive Media & Services | 124,530 | — | — | |||||||||
Internet & Direct Marketing Retail | 152,356 | — | — | |||||||||
IT Services | 321,015 | — | — | |||||||||
Leisure Products | 122,655 | — | — | |||||||||
Life Sciences Tools & Services | 76,522 | — | — | |||||||||
Machinery | 591,508 | — | — | |||||||||
Marine | 21,630 | — | — | |||||||||
Media | 154,869 | — | — | |||||||||
Metals & Mining | 79,665 | — | — | |||||||||
Multiline Retail | 21,220 | — | — | |||||||||
Oil, Gas & Consumable Fuels | 245,251 | — | — | |||||||||
Paper & Forest Products | 57,159 | — | — | |||||||||
Personal Products | 99,506 | — | — | |||||||||
Pharmaceuticals | 398,277 | — | — |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 55 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Professional Services | $ | 297,453 | $ | — | $ | — | ||||||
Real Estate Management & Development | 173,546 | — | — | |||||||||
Road & Rail | 80,043 | — | — | |||||||||
Semiconductors & Semiconductor Equipment | 276,593 | — | — | |||||||||
Software | 841,934 | — | — | |||||||||
Specialty Retail | 412,762 | — | — | |||||||||
Technology Hardware, Storage & Peripherals | 64,016 | — | — | |||||||||
Textiles, Apparel & Luxury Goods | 149,272 | — | — | |||||||||
Thrifts & Mortgage Finance | 255,316 | — | — | |||||||||
Tobacco | 20,123 | — | — | |||||||||
Trading Companies & Distributors | 231,521 | — | — | |||||||||
Water Utilities | 148,925 | — | — | |||||||||
Wireless Telecommunication Services | 20,354 | — | — | |||||||||
Time Deposit | — | 43,072 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 12,916,677 | $ | 43,072 | $ | — | ||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of February 28, 2019 were as follows (unaudited):
Biotechnology | 8.5 | % | ||
Software | 6.5 | |||
Banks | 6.1 | |||
Health Care Equipment & Supplies | 4.9 | |||
Machinery | 4.6 | |||
Equity Real Estate Investment Trusts (REITs) | 3.4 | |||
Specialty Retail | 3.2 | |||
Pharmaceuticals | 3.1 | |||
Hotels, Restaurants & Leisure | 2.9 | |||
Capital Markets | 2.6 | |||
Commercial Services & Supplies | 2.6 | |||
Chemicals | 2.5 | |||
IT Services | 2.5 | |||
Health Care Providers & Services | 2.5 | |||
Professional Services | 2.3 | |||
Semiconductors & Semiconductor Equipment | 2.1 | |||
Thrifts & Mortgage Finance | 2.0 | |||
Oil, Gas & Consumable Fuels | 1.9 | |||
Household Durables | 1.9 | |||
Building Products | 1.9 | |||
Electronic Equipment, Instruments & Components | 1.9 | |||
Trading Companies & Distributors | 1.8 | |||
Communications Equipment | 1.8 | % | ||
Construction & Engineering | 1.6 | |||
Insurance | 1.5 | |||
Health Care Technology | 1.4 | |||
Real Estate Management & Development | 1.3 | |||
Media | 1.2 | |||
Internet & Direct Marketing Retail | 1.2 | |||
Water Utilities | 1.1 | |||
Electrical Equipment | 1.1 | |||
Textiles, Apparel & Luxury Goods | 1.1 | |||
Diversified Consumer Services | 1.0 | |||
Interactive Media & Services | 1.0 | |||
Leisure Products | 0.9 | |||
Consumer Finance | 0.8 | |||
Auto Components | 0.8 | |||
Personal Products | 0.8 | |||
Energy Equipment & Services | 0.7 | |||
Beverages | 0.7 | |||
Food Products | 0.6 | |||
Road & Rail | 0.6 | |||
Metals & Mining | 0.6 | |||
Life Sciences Tools & Services | 0.6 |
See Notes to Financial Statements.
56 |
Industry Classification (cont’d.) | ||||
Food & Staples Retailing | 0.5 | % | ||
Air Freight & Logistics | 0.5 | |||
Technology Hardware, Storage & Peripherals | 0.5 | |||
Entertainment | 0.5 | |||
Aerospace & Defense | 0.5 | |||
Paper & Forest Products | 0.4 | |||
Construction Materials | 0.3 | |||
Time Deposit | 0.3 | |||
Containers & Packaging | 0.3 | |||
Gas Utilities | 0.3 | |||
Industrial Conglomerates | 0.2 | |||
Distributors | 0.2 | |||
Diversified Telecommunication Services | 0.2 | % | ||
Diversified Financial Services | 0.2 | |||
Marine | 0.2 | |||
Electric Utilities | 0.2 | |||
Multiline Retail | 0.2 | |||
Tobacco | 0.1 | |||
Household Products | 0.1 | |||
Wireless Telecommunication Services | 0.1 | |||
|
| |||
99.9 | ||||
Other assets in excess of liabilities | 0.1 | |||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 57 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Statement of Assets & Liabilities(unaudited)
as of February 28, 2019
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $12,806,844) | $ | 12,959,749 | ||
Cash | 347 | |||
Dividends receivable | 9,363 | |||
|
| |||
Total assets | 12,969,459 | |||
|
| |||
Liabilities | ||||
Management fee payable | 2,815 | |||
|
| |||
Total Liabilities | 2,815 | |||
|
| |||
Net Assets | $ | 12,966,644 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 250 | ||
Paid-in capital in excess of par | 12,487,470 | |||
|
| |||
12,487,720 | ||||
Total distributable earnings (loss) | 478,924 | |||
|
| |||
Net assets, February 28, 2019 | $ | 12,966,644 | ||
|
| |||
Net asset value, offering price and redemption price per share, ($ 12,966,644 / 250,000 shares of common stock issued and outstanding) | $ | 51.87 | ||
|
|
See Notes to Financial Statements.
58 |
PGIM QMA Strategic AlphaSmall-Cap Growth ETF
Statement of Operations(unaudited)
Period Ended February 28, 2019*
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 2,216 | ||
Unaffiliated dividend income | 49,454 | |||
|
| |||
Total income | 51,670 | |||
|
| |||
Expenses | ||||
Management fee | 10,025 | |||
|
| |||
Total expenses | 10,025 | |||
|
| |||
Net investment income (loss) | 41,645 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions | 307,756 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 152,905 | |||
|
| |||
Net gain (loss) on investment transactions | 460,661 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 502,306 | ||
|
|
* | For the period from November 13, 2018 (commencement of operations) through February 28, 2019. |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 59 |
PGIM QMA Strategic AlphaSmall-Cap Growth ETF
Statement of Changes in Net Assets(unaudited)
Period Ended February 28, 2019* | ||||
Increase (Decrease) in Net Assets | ||||
Operations | ||||
Net investment income (loss) | $ | 41,645 | ||
Net realized gain (loss) on investments | 307,756 | |||
Net change in unrealized appreciation (depreciation) on investments | 152,905 | |||
|
| |||
Net increase (decrease) in net assets resulting from operations | 502,306 | |||
|
| |||
Dividends and Distributions | ||||
Distributions from distributable earnings | (23,382 | ) | ||
|
| |||
Fund share transactions (Net of share conversions) | ||||
Net proceeds from shares sold | 12,487,720 | |||
|
| |||
Net increase (decrease) in net assets from Fund share transactions | 12,487,720 | |||
|
| |||
Total increase (decrease) | 12,966,644 | |||
Net Assets: | ||||
Beginning of period | — | |||
|
| |||
End of period | $ | 12,966,644 | ||
|
|
* | For the period from November 13, 2018 (commencement of operations) through February 28, 2019. |
See Notes to Financial Statements.
60 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments(unaudited)
as of February 28, 2019
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.5% | ||||||||
COMMON STOCKS 99.5% | ||||||||
Aerospace & Defense 0.9% | ||||||||
AAR Corp. | 464 | $ | 16,950 | |||||
Ducommun, Inc.* | 414 | 17,566 | ||||||
KeyW Holding Corp. (The)* | 2,391 | 17,693 | ||||||
Moog, Inc. (Class A Stock) | 184 | 17,289 | ||||||
National Presto Industries, Inc. | 144 | 16,148 | ||||||
Vectrus, Inc.* | 612 | 16,500 | ||||||
Wesco Aircraft Holdings, Inc.* | 2,104 | 17,863 | ||||||
|
| |||||||
120,009 | ||||||||
Air Freight & Logistics 0.4% | ||||||||
Atlas Air Worldwide Holdings, Inc.* | 316 | 16,982 | ||||||
Hub Group, Inc. (Class A Stock)* | 368 | 15,817 | ||||||
Radiant Logistics, Inc.* | 2,906 | 18,569 | ||||||
|
| |||||||
51,368 | ||||||||
Airlines 0.3% | ||||||||
Hawaiian Holdings, Inc. | 548 | 16,303 | ||||||
SkyWest, Inc. | 314 | 16,969 | ||||||
|
| |||||||
33,272 | ||||||||
Auto Components 0.4% | ||||||||
Cooper Tire & Rubber Co. | 524 | 16,747 | ||||||
Cooper-Standard Holdings, Inc.* | 280 | 16,831 | ||||||
Superior Industries International, Inc. | 2,865 | 17,734 | ||||||
|
| |||||||
51,312 | ||||||||
Banks 18.8% | ||||||||
1st Constitution Bancorp | 938 | 17,512 | ||||||
ACNB Corp. | 433 | 17,060 | ||||||
Allegiance Bancshares, Inc.* | 438 | 16,758 | ||||||
Amalgamated Bank (Class A Stock) | 948 | 16,789 | ||||||
Ames National Corp. | 613 | 17,060 | ||||||
Bancorp, Inc. (The)* | 1,887 | 17,115 | ||||||
Bank of Commerce Holdings | 1,340 | 15,209 | ||||||
Bank of Marin Bancorp | 402 | 17,889 | ||||||
Bank of Princeton (The) | 573 | 18,640 | ||||||
Bar Harbor Bankshares | 661 | 17,067 | ||||||
Baycom Corp.* | 681 | 15,711 | ||||||
BCB Bancorp, Inc. | 1,423 | 18,670 | ||||||
Berkshire Hills Bancorp, Inc. | 565 | 17,696 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 61 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont’d.) | ||||||||
Boston Private Financial Holdings, Inc. | 1,463 | $ | 17,395 | |||||
Bridge Bancorp, Inc. | 563 | 18,562 | ||||||
Brookline Bancorp, Inc. | 1,077 | 17,210 | ||||||
Bryn Mawr Bank Corp. | 424 | 17,282 | ||||||
Byline Bancorp, Inc.* | 789 | 16,127 | ||||||
C&F Financial Corp. | 315 | 16,251 | ||||||
Cadence BanCorp (Class A Stock) | 868 | 17,351 | ||||||
Capital Bancorp, Inc.* | 1,463 | 17,278 | ||||||
Capital City Bank Group, Inc. | 675 | 16,659 | ||||||
Carolina Financial Corp. | 504 | 18,456 | ||||||
CB Financial Services, Inc. | 673 | 17,411 | ||||||
Central Valley Community Bancorp | 845 | 16,452 | ||||||
Chemical Financial Corp. | 365 | 16,728 | ||||||
Chemung Financial Corp. | 389 | 18,120 | ||||||
Citizens & Northern Corp. | 658 | 17,266 | ||||||
Civista Bancshares, Inc. | 806 | 17,192 | ||||||
CNB Financial Corp. | 644 | 17,903 | ||||||
Coastal Financial Corp.* | 1,108 | 18,116 | ||||||
Codorus Valley Bancorp, Inc. | 759 | 17,214 | ||||||
Community Bankers Trust Corp.* | 2,225 | 17,755 | ||||||
Community Financial Corp. (The) | 564 | 16,954 | ||||||
Community Trust Bancorp, Inc. | 373 | 15,957 | ||||||
ConnectOne Bancorp, Inc. | 804 | 17,342 | ||||||
County Bancorp, Inc. | 909 | 17,353 | ||||||
Customers Bancorp, Inc.* | 846 | 18,096 | ||||||
Enterprise Bancorp, Inc. | 549 | 17,414 | ||||||
Enterprise Financial Services Corp. | 371 | 16,762 | ||||||
Equity Bancshares, Inc. (Class A Stock)* | 463 | 15,737 | ||||||
Evans Bancorp, Inc. | 486 | 17,326 | ||||||
Farmers National Banc Corp. | 1,235 | 18,179 | ||||||
FB Financial Corp. | 490 | 17,371 | ||||||
Financial Institutions, Inc. | 573 | 17,270 | ||||||
First Bancorp | 441 | 17,283 | ||||||
First BanCorp | 1,515 | 17,438 | ||||||
First Bancorp, Inc. | 600 | 15,810 | ||||||
First Bancshares, Inc. (The) | 529 | 17,330 | ||||||
First Bank | 1,428 | 16,522 | ||||||
First Busey Corp. | 601 | 16,191 | ||||||
First Business Financial Services, Inc. | 840 | 18,530 | ||||||
First Commonwealth Financial Corp. | 1,220 | 17,153 | ||||||
First Community Corp. | 896 | 17,965 | ||||||
First Financial Bancorp | 615 | 17,054 |
See Notes to Financial Statements.
62 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont’d.) | ||||||||
First Financial Corp. | 360 | $ | 15,977 | |||||
First Foundation, Inc. | 1,134 | 17,294 | ||||||
First Guaranty Bancshares, Inc. | 833 | 17,401 | ||||||
First Internet Bancorp | 800 | 17,280 | ||||||
First Merchants Corp. | 409 | 16,520 | ||||||
FirstMid-Illinois Bancshares, Inc. | 489 | 17,071 | ||||||
First Midwest Bancorp, Inc. | 735 | 17,015 | ||||||
First Northwest Bancorp | 1,099 | 17,716 | ||||||
First Savings Financial Group, Inc. | 336 | 17,580 | ||||||
First United Corp. | 1,008 | 17,438 | ||||||
Flushing Financial Corp. | 738 | 17,129 | ||||||
Great Southern Bancorp, Inc. | 314 | 17,782 | ||||||
Great Western Bancorp, Inc. | 470 | 17,649 | ||||||
Hancock Whitney Corp. | 415 | 18,127 | ||||||
Heartland Financial USA, Inc. | 356 | 17,298 | ||||||
Heritage Commerce Corp. | 1,226 | 17,127 | ||||||
Hilltop Holdings, Inc. | 858 | 16,491 | ||||||
HomeTrust Bancshares, Inc. | 621 | 16,910 | ||||||
Hope Bancorp, Inc. | 1,134 | 16,534 | ||||||
Horizon Bancorp, Inc. | 976 | 17,246 | ||||||
Howard Bancorp, Inc.* | 1,260 | 16,720 | ||||||
IBERIABANK Corp. | 226 | 17,680 | ||||||
Independent Bank Corp. | 746 | 17,344 | ||||||
Independent Bank Group, Inc. | 288 | 16,692 | ||||||
International Bancshares Corp. | 424 | 17,308 | ||||||
Investar Holding Corp. | 700 | 17,038 | ||||||
Investors Bancorp, Inc. | 1,363 | 17,133 | ||||||
Lakeland Bancorp, Inc. | 1,030 | 17,232 | ||||||
LCNB Corp. | 1,015 | 17,255 | ||||||
Level One Bancorp, Inc.* | 730 | 16,863 | ||||||
Malvern Bancorp, Inc.* | 868 | 18,020 | ||||||
Metropolitan Bank Holding Corp.* | 451 | 17,377 | ||||||
Mid Penn Bancorp, Inc. | 746 | 18,270 | ||||||
Middlefield Banc Corp. | 368 | 15,438 | ||||||
Midland States Bancorp, Inc. | 638 | 16,269 | ||||||
MidSouth Bancorp, Inc. | 1,498 | 17,062 | ||||||
MidWestOne Financial Group, Inc. | 546 | 16,975 | ||||||
MutualFirst Financial, Inc. | 557 | 17,512 | ||||||
MVB Financial Corp. | 1,091 | 16,692 | ||||||
National Bank Holdings Corp. (Class A Stock) | 480 | 17,342 | ||||||
Nicolet Bankshares, Inc.* | 321 | 18,432 | ||||||
Northeast Bancorp | 910 | 18,455 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 63 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont’d.) | ||||||||
Northrim BanCorp, Inc. | 449 | $ | 16,842 | |||||
Oak Valley Bancorp | 978 | 17,457 | ||||||
OFG Bancorp | 820 | 16,966 | ||||||
Ohio Valley Banc Corp. | 456 | 16,649 | ||||||
Old Line Bancshares, Inc. | 568 | 16,268 | ||||||
Old National Bancorp | 974 | 17,318 | ||||||
Old Second Bancorp, Inc. | 1,156 | 16,508 | ||||||
Opus Bank | 778 | 17,715 | ||||||
Orrstown Financial Services, Inc. | 781 | 15,948 | ||||||
Pacific City Financial Corp. | 1,035 | 17,595 | ||||||
Pacific Mercantile Bancorp* | 2,108 | 17,391 | ||||||
Pacific Premier Bancorp, Inc. | 564 | 16,835 | ||||||
Peapack Gladstone Financial Corp. | 601 | 17,477 | ||||||
Penns Woods Bancorp, Inc. | 400 | 17,544 | ||||||
Peoples Bancorp of North Carolina, Inc. | 604 | 17,033 | ||||||
Peoples Bancorp, Inc. | 490 | 16,337 | ||||||
Peoples Financial Services Corp. | 393 | 17,194 | ||||||
Premier Financial Bancorp, Inc. | 1,070 | 17,730 | ||||||
QCR Holdings, Inc. | 454 | 16,230 | ||||||
RBB Bancorp | 769 | 16,649 | ||||||
Renasant Corp. | 474 | 18,145 | ||||||
Republic Bancorp, Inc. (Class A Stock) | 369 | 16,694 | ||||||
Sandy Spring Bancorp, Inc. | 473 | 16,588 | ||||||
SB One Bancorp | 705 | 16,673 | ||||||
Select Bancorp, Inc.* | 1,390 | 16,082 | ||||||
Shore Bancshares, Inc. | 1,025 | 16,144 | ||||||
Sierra Bancorp | 600 | 16,170 | ||||||
Simmons First National Corp. (Class A Stock) | 634 | 17,010 | ||||||
SmartFinancial, Inc.* | 814 | 15,971 | ||||||
Southern First Bancshares, Inc.* | 458 | 17,450 | ||||||
Southern National Bancorp of Virginia, Inc. | 1,098 | 17,403 | ||||||
Spirit of Texas Bancshares, Inc.* | 793 | 17,129 | ||||||
Stock Yards Bancorp, Inc. | 470 | 16,741 | ||||||
Summit Financial Group, Inc. | 716 | 17,478 | ||||||
TriCo Bancshares | 437 | 17,576 | ||||||
United Community Banks, Inc. | 592 | 16,392 | ||||||
United Security Bancshares | 1,558 | 16,826 | ||||||
Unity Bancorp, Inc. | 794 | 17,539 | ||||||
Univest Financial Corp. | 665 | 17,629 | ||||||
Veritex Holdings, Inc. | 622 | 17,422 | ||||||
Washington Trust Bancorp, Inc. | 326 | 17,082 | ||||||
WesBanco, Inc. | 405 | 17,184 | ||||||
|
| |||||||
2,382,649 |
See Notes to Financial Statements.
64 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Biotechnology 1.5% | ||||||||
Achillion Pharmaceuticals, Inc.* | 7,029 | $ | 17,643 | |||||
Acorda Therapeutics, Inc.* | 1,297 | 19,118 | ||||||
Adverum Biotechnologies, Inc.* | 4,544 | 18,403 | ||||||
Anika Therapeutics, Inc.* | 429 | 13,998 | ||||||
Ardelyx, Inc.* | 6,808 | 19,130 | ||||||
BioTime, Inc.* | 13,564 | 16,277 | ||||||
Catalyst Biosciences, Inc.* | 2,071 | 17,645 | ||||||
Myriad Genetics, Inc.* | 569 | 17,656 | ||||||
OPKO Health, Inc.* | 6,336 | 16,157 | ||||||
PDL BioPharma, Inc.* | 4,863 | 17,653 | ||||||
Prothena Corp. PLC* | 1,301 | 17,433 | ||||||
|
| |||||||
191,113 | ||||||||
Building Products 0.9% | ||||||||
Apogee Enterprises, Inc. | 449 | 16,025 | ||||||
Armstrong Flooring, Inc.* | 1,085 | 15,559 | ||||||
Caesarstone Ltd. | 1,026 | 17,237 | ||||||
Griffon Corp. | 981 | 17,501 | ||||||
Insteel Industries, Inc. | 770 | 17,517 | ||||||
Masonite International Corp.* | 301 | 16,690 | ||||||
Universal Forest Products, Inc. | 534 | 16,538 | ||||||
|
| |||||||
117,067 | ||||||||
Capital Markets 1.5% | ||||||||
B. Riley Financial, Inc. | 1,056 | 17,994 | ||||||
Blucora, Inc.* | 647 | 17,398 | ||||||
BrightSphere Investment Group PLC | 1,314 | 18,593 | ||||||
Cowen, Inc. (Class A Stock)* | 1,044 | 16,161 | ||||||
Donnelley Financial Solutions, Inc.* | 996 | 14,153 | ||||||
Federated Investors, Inc. (Class B Stock) | 602 | 17,910 | ||||||
GAMCO Investors, Inc. (Class A Stock) | 841 | 17,224 | ||||||
Greenhill & Co., Inc. | 769 | 18,102 | ||||||
Oppenheimer Holdings, Inc. (Class A Stock) | 621 | 17,525 | ||||||
Piper Jaffray Cos. | 238 | 16,650 | ||||||
Stifel Financial Corp. | 317 | 17,254 | ||||||
|
| |||||||
188,964 | ||||||||
Chemicals 1.8% | ||||||||
AdvanSix, Inc.* | 515 | 16,866 | ||||||
AgroFresh Solutions, Inc.* | 4,395 | 18,942 | ||||||
FutureFuel Corp. | 913 | 16,836 | ||||||
Hawkins, Inc. | 435 | 17,931 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 65 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Chemicals (cont’d.) | ||||||||
HB Fuller Co. | 342 | $ | 17,264 | |||||
Innophos Holdings, Inc. | 570 | 18,924 | ||||||
Innospec, Inc. | 229 | 18,746 | ||||||
LSB Industries, Inc.* | 2,254 | 15,891 | ||||||
Minerals Technologies, Inc. | 303 | 17,937 | ||||||
PolyOne Corp. | 513 | 16,734 | ||||||
Stepan Co. | 200 | 18,820 | ||||||
Trecora Resources* | 1,856 | 17,818 | ||||||
Tredegar Corp. | 1,054 | 18,361 | ||||||
|
| |||||||
231,070 | ||||||||
Commercial Services & Supplies 2.3% | ||||||||
ACCO Brands Corp. | 2,050 | 19,065 | ||||||
Brady Corp. (Class A Stock) | 363 | 17,173 | ||||||
BrightView Holdings, Inc.* | 1,256 | 16,956 | ||||||
CECO Environmental Corp.* | 2,164 | 16,490 | ||||||
Ennis, Inc. | 855 | 18,126 | ||||||
Heritage-Crystal Clean, Inc.* | 696 | 16,815 | ||||||
Herman Miller, Inc. | 506 | 18,560 | ||||||
Kimball International, Inc. (Class B Stock) | 1,055 | 16,553 | ||||||
Knoll, Inc. | 879 | 18,600 | ||||||
Matthews International Corp. (Class A Stock) | 396 | 15,749 | ||||||
Multi-Color Corp. | 369 | 18,395 | ||||||
Quad/Graphics, Inc. | 1,000 | 14,590 | ||||||
SP Plus Corp.* | 465 | 15,996 | ||||||
Steelcase, Inc. (Class A Stock) | 1,023 | 17,913 | ||||||
Team, Inc.* | 1,138 | 17,775 | ||||||
UniFirst Corp. | 118 | 16,971 | ||||||
VSE Corp. | 487 | 17,215 | ||||||
|
| |||||||
292,942 | ||||||||
Communications Equipment 1.9% | ||||||||
Acacia Communications, Inc.* | 368 | 19,633 | ||||||
ADTRAN, Inc. | 1,194 | 17,934 | ||||||
Applied Optoelectronics, Inc.* | 1,189 | 16,051 | ||||||
Calix, Inc.* | 2,049 | 16,802 | ||||||
Ciena Corp.* | 410 | 17,490 | ||||||
Clearfield, Inc.* | 1,223 | 17,758 | ||||||
Comtech Telecommunications Corp. | 623 | 16,509 | ||||||
DASAN Zhone Solutions, Inc.* | 1,219 | 16,859 | ||||||
Digi International, Inc.* | 1,280 | 16,896 | ||||||
InterDigital, Inc. | 229 | 15,968 |
See Notes to Financial Statements.
66 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Communications Equipment (cont’d.) | ||||||||
NETGEAR, Inc.* | 501 | $ | 17,961 | |||||
NetScout Systems, Inc.* | 640 | 17,517 | ||||||
Ribbon Communications, Inc.* | 3,239 | 16,681 | ||||||
Viavi Solutions, Inc.* | 1,328 | 17,437 | ||||||
|
| |||||||
241,496 | ||||||||
Construction & Engineering 1.1% | ||||||||
Aegion Corp. (Class A Stock)* | 866 | 15,034 | ||||||
EMCOR Group, Inc. | 229 | 16,518 | ||||||
IES Holdings, Inc.* | 980 | 18,012 | ||||||
KBR, Inc. | 952 | 18,812 | ||||||
Northwest Pipe Co.* | 678 | 16,726 | ||||||
Orion Group Holdings, Inc.* | 3,894 | 16,549 | ||||||
Sterling Construction Co., Inc.* | 1,295 | 18,920 | ||||||
Tutor Perini Corp.* | 985 | 18,538 | ||||||
|
| |||||||
139,109 | ||||||||
Construction Materials 0.1% | ||||||||
United States Lime & Minerals, Inc. | 226 | 16,272 | ||||||
Consumer Finance 0.5% | ||||||||
EZCORP, Inc. (Class A Stock)* | 1,836 | 17,937 | ||||||
Nelnet, Inc. (Class A Stock) | 318 | 17,433 | ||||||
PRA Group, Inc.* | 542 | 17,447 | ||||||
Regional Management Corp.* | 600 | 16,314 | ||||||
|
| |||||||
69,131 | ||||||||
Containers & Packaging 0.4% | ||||||||
Greif, Inc., | ||||||||
(Class A Stock) | 432 | 17,366 | ||||||
(Class B Stock) | 377 | 17,139 | ||||||
UFP Technologies, Inc.* | 484 | 16,214 | ||||||
|
| |||||||
50,719 | ||||||||
Distributors 0.3% | ||||||||
Core-Mark Holding Co., Inc. | 589 | 18,560 | ||||||
Weyco Group, Inc. | 591 | 17,919 | ||||||
|
| |||||||
36,479 | ||||||||
Diversified Consumer Services 0.7% | ||||||||
Adtalem Global Education, Inc.* | 353 | 17,015 | ||||||
American Public Education, Inc.* | 513 | 16,575 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 67 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Diversified Consumer Services (cont’d.) | ||||||||
K12, Inc.* | 532 | $ | 17,045 | |||||
Laureate Education, Inc. (Class A Stock)* | 1,058 | 16,177 | ||||||
Regis Corp.* | 958 | 17,330 | ||||||
|
| |||||||
84,142 | ||||||||
Diversified Financial Services 0.6% | ||||||||
Banco Latinoamericano de Comercio Exterior SA (Class E Stock) | 958 | 20,041 | ||||||
Cannae Holdings, Inc.* | 773 | 17,717 | ||||||
FGL Holdings* | 2,178 | 18,078 | ||||||
Marlin Business Services Corp. | 747 | 17,584 | ||||||
|
| |||||||
73,420 | ||||||||
Electric Utilities 0.7% | ||||||||
ALLETE, Inc. | 218 | 17,669 | ||||||
IDACORP, Inc. | 171 | 16,828 | ||||||
MGE Energy, Inc. | 269 | 17,195 | ||||||
Otter Tail Corp. | 354 | 17,799 | ||||||
Portland General Electric Co. | 360 | 18,050 | ||||||
|
| |||||||
87,541 | ||||||||
Electrical Equipment 0.5% | ||||||||
AZZ, Inc. | 360 | 16,567 | ||||||
Encore Wire Corp. | 300 | 17,772 | ||||||
Powell Industries, Inc. | 533 | 17,104 | ||||||
Preformed Line Products Co. | 282 | 16,836 | ||||||
|
| |||||||
68,279 | ||||||||
Electronic Equipment, Instruments & Components 2.7% | ||||||||
Anixter International, Inc.* | 279 | 16,372 | ||||||
Arlo Technologies, Inc.* | 4,276 | 18,515 | ||||||
AVX Corp. | 944 | 17,181 | ||||||
Bel Fuse, Inc. (Class B Stock) | 660 | 16,137 | ||||||
Belden, Inc. | 288 | 17,795 | ||||||
Benchmark Electronics, Inc. | 620 | 16,988 | ||||||
CTS Corp. | 618 | 19,850 | ||||||
Daktronics, Inc. | 2,107 | 17,109 | ||||||
Insight Enterprises, Inc.* | 305 | 17,025 | ||||||
Kimball Electronics, Inc.* | 966 | 14,973 | ||||||
Knowles Corp.* | 1,067 | 17,371 | ||||||
Methode Electronics, Inc. | 589 | 16,527 | ||||||
OSI Systems, Inc.* | 194 | 16,849 |
See Notes to Financial Statements.
68 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Electronic Equipment, Instruments & Components (cont’d.) | ||||||||
Park Electrochemical Corp. | 945 | $ | 16,433 | |||||
PC Connection, Inc. | 420 | 16,901 | ||||||
Plexus Corp.* | 295 | 18,219 | ||||||
ScanSource, Inc.* | 418 | 15,696 | ||||||
Tech Data Corp.* | 163 | 16,662 | ||||||
Vishay Intertechnology, Inc. | 780 | 17,098 | ||||||
Vishay Precision Group, Inc.* | 503 | 17,535 | ||||||
|
| |||||||
341,236 | ||||||||
Energy Equipment & Services 1.6% | ||||||||
Archrock, Inc. | 1,620 | 15,811 | ||||||
Basic Energy Services, Inc.* | 3,397 | 16,407 | ||||||
C&J Energy Services, Inc.* | 981 | 16,942 | ||||||
Diamond Offshore Drilling, Inc.* | 1,666 | 15,910 | ||||||
Era Group, Inc.* | 1,503 | 17,315 | ||||||
Exterran Corp.* | 970 | 16,558 | ||||||
Forum Energy Technologies, Inc.* | 2,773 | 16,167 | ||||||
Helix Energy Solutions Group, Inc.* | 2,200 | 16,280 | ||||||
Matrix Service Co.* | 803 | 16,775 | ||||||
NCS Multistage Holdings, Inc.* | 2,932 | 16,155 | ||||||
Newpark Resources, Inc.* | 1,866 | 16,495 | ||||||
Unit Corp.* | 1,056 | 16,421 | ||||||
|
| |||||||
197,236 | ||||||||
Entertainment 0.3% | ||||||||
Marcus Corp. (The) | 411 | 17,422 | ||||||
Reading International, Inc. (Class A Stock)* | 1,119 | 18,027 | ||||||
|
| |||||||
35,449 | ||||||||
Equity Real Estate Investment Trusts (REITs) 9.1% | ||||||||
Alexander & Baldwin, Inc.* | 707 | 16,211 | ||||||
American Assets Trust, Inc. | 430 | 18,679 | ||||||
Armada Hoffler Properties, Inc. | 1,100 | 16,830 | ||||||
Ashford Hospitality Trust, Inc. | 3,338 | 17,892 | ||||||
Bluerock Residential Growth REIT, Inc. (Class A Stock) | 1,795 | 19,027 | ||||||
Braemar Hotels & Resorts, Inc. | 1,426 | 18,566 | ||||||
BRT Apartments Corp. | 1,298 | 17,263 | ||||||
CatchMark Timber Trust, Inc. (Class A Stock) | 1,853 | 17,696 | ||||||
Cedar Realty Trust, Inc. | 4,836 | 16,829 | ||||||
Chatham Lodging Trust | 849 | 16,963 | ||||||
Chesapeake Lodging Trust | 573 | 17,259 | ||||||
City Office REIT, Inc. | 1,510 | 16,610 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 69 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) (cont’d.) | ||||||||
Community Healthcare Trust, Inc. | 501 | $ | 17,881 | |||||
CoreCivic, Inc. | 743 | 15,737 | ||||||
CorEnergy Infrastructure Trust, Inc. | 471 | 17,173 | ||||||
CorePoint Lodging, Inc. | 1,111 | 15,521 | ||||||
DiamondRock Hospitality Co. | 1,619 | 17,307 | ||||||
Essential Properties Realty Trust, Inc. | 1,063 | 18,039 | ||||||
First Industrial Realty Trust, Inc. | 530 | 17,766 | ||||||
Franklin Street Properties Corp. | 2,178 | 15,769 | ||||||
Front Yard Residential Corp. | 1,536 | 17,096 | ||||||
GEO Group, Inc. (The) | 744 | 16,904 | ||||||
Getty Realty Corp. | 514 | 16,936 | ||||||
Gladstone Commercial Corp. | 865 | 17,854 | ||||||
Global Medical REIT, Inc. | 1,799 | 18,530 | ||||||
Global Net Lease, Inc. | 885 | 15,788 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 734 | 18,071 | ||||||
Hersha Hospitality Trust (Class A Stock) | 934 | 17,606 | ||||||
Independence Realty Trust, Inc. | 1,688 | 17,488 | ||||||
Industrial Logistics Properties Trust | 805 | 16,792 | ||||||
InfraREIT, Inc. | 796 | 16,995 | ||||||
Investors Real Estate Trust | 310 | 18,718 | ||||||
Jernigan Capital, Inc. | 809 | 17,353 | ||||||
Kite Realty Group Trust | 1,040 | 16,370 | ||||||
Lexington Realty Trust | 2,004 | 18,617 | ||||||
LTC Properties, Inc. | 370 | 16,435 | ||||||
Mack-Cali Realty Corp. | 823 | 17,291 | ||||||
Monmouth Real Estate Investment Corp. | 1,268 | 16,814 | ||||||
National Health Investors, Inc. | 224 | 17,479 | ||||||
National Storage Affiliates Trust | 620 | 17,558 | ||||||
New Senior Investment Group, Inc. | 3,116 | 16,078 | ||||||
NexPoint Residential Trust, Inc. | 463 | 16,640 | ||||||
NorthStar Realty Europe Corp. | 1,020 | 18,299 | ||||||
Office Properties Income Trust | 561 | 17,116 | ||||||
Pebblebrook Hotel Trust | 518 | 16,581 | ||||||
Pennsylvania Real Estate Investment Trust | 2,658 | 16,347 | ||||||
Piedmont Office Realty Trust, Inc. (Class A Stock) | 911 | 18,648 | ||||||
Preferred Apartment Communities, Inc. (Class A Stock) | 1,085 | 16,535 | ||||||
PS Business Parks, Inc. | 124 | 18,249 | ||||||
Retail Opportunity Investments Corp. | 1,006 | 17,273 | ||||||
Rexford Industrial Realty, Inc. | 497 | 17,037 | ||||||
RLJ Lodging Trust | 844 | 15,673 | ||||||
RPT Realty | 1,361 | 17,257 | ||||||
Sabra Health Care REIT, Inc. | 798 | 14,460 |
See Notes to Financial Statements.
70 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) (cont’d.) | ||||||||
Safehold, Inc. | 914 | $ | 17,503 | |||||
Saul Centers, Inc. | 302 | 17,114 | ||||||
Spirit MTA REIT | 2,296 | 16,876 | ||||||
Summit Hotel Properties, Inc. | 1,463 | 16,664 | ||||||
Terreno Realty Corp. | 423 | 17,301 | ||||||
Tier REIT, Inc. | 728 | 17,654 | ||||||
UMH Properties, Inc. | 1,269 | 17,360 | ||||||
Universal Health Realty Income Trust | 231 | 17,202 | ||||||
Urban Edge Properties | 809 | 15,711 | ||||||
Urstadt Biddle Properties, Inc. (Class A Stock) | 824 | 17,238 | ||||||
Washington Prime Group, Inc. | 3,051 | 17,635 | ||||||
Whitestone REIT (Class B Stock) | 1,198 | 15,586 | ||||||
Xenia Hotels & Resorts, Inc. | 834 | 16,288 | ||||||
|
| |||||||
1,148,038 | ||||||||
Food & Staples Retailing 1.3% | ||||||||
BJ’s Wholesale Club Holdings, Inc.* | 743 | 18,813 | ||||||
Ingles Markets, Inc. (Class A Stock) | 580 | 18,049 | ||||||
Natural Grocers by Vitamin Cottage, Inc.* | 1,209 | 17,168 | ||||||
Rite Aid Corp.* | 23,228 | 17,189 | ||||||
Smart & Final Stores, Inc.* | 2,646 | 16,405 | ||||||
SpartanNash Co. | 958 | 18,183 | ||||||
United Natural Foods, Inc.* | 1,154 | 17,321 | ||||||
Village Super Market, Inc. (Class A Stock) | 563 | 17,256 | ||||||
Weis Markets, Inc. | 355 | 17,860 | ||||||
|
| |||||||
158,244 | ||||||||
Food Products 1.4% | ||||||||
Alico, Inc. | 571 | 17,278 | ||||||
B&G Foods, Inc. | 639 | 15,732 | ||||||
Cal-Maine Foods, Inc. | 386 | 17,023 | ||||||
Darling Ingredients, Inc.* | 798 | 17,540 | ||||||
Fresh Del Monte Produce, Inc. | 620 | 17,162 | ||||||
Hostess Brands, Inc. (Class A Stock)* | 1,508 | 18,307 | ||||||
Lancaster Colony Corp. | 108 | 16,931 | ||||||
Landec Corp.* | 1,369 | 17,578 | ||||||
Seneca Foods Corp. (Class A Stock)* | 582 | 17,181 | ||||||
Simply Good Foods Co. (The)* | 849 | 17,370 | ||||||
|
| |||||||
172,102 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 71 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Gas Utilities 0.7% | ||||||||
Chesapeake Utilities Corp. | 205 | $ | 18,452 | |||||
New Jersey Resources Corp. | 354 | 17,134 | ||||||
RGC Resources, Inc. | 633 | 17,445 | ||||||
Southwest Gas Holdings, Inc. | 199 | 16,306 | ||||||
Spire, Inc. | 221 | 17,530 | ||||||
|
| |||||||
86,867 | ||||||||
Health Care Equipment & Supplies 1.8% | ||||||||
AngioDynamics, Inc.* | 799 | 17,906 | ||||||
Avanos Medical, Inc.* | 340 | 16,007 | ||||||
CONMED Corp. | 246 | 18,918 | ||||||
FONAR Corp.* | 758 | 16,411 | ||||||
Integer Holdings Corp.* | 203 | 18,465 | ||||||
Invacare Corp. | 1,795 | 17,465 | ||||||
Lantheus Holdings, Inc.* | 757 | 17,298 | ||||||
LivaNova PLC* | 177 | 16,496 | ||||||
Meridian Bioscience, Inc. | 1,005 | 17,155 | ||||||
Orthofix Medical, Inc.* | 283 | 17,291 | ||||||
RTI Surgical, Inc.* | 3,746 | 18,655 | ||||||
SeaSpine Holdings Corp.* | 983 | 15,079 | ||||||
Utah Medical Products, Inc. | 195 | 16,552 | ||||||
|
| |||||||
223,698 | ||||||||
Health Care Providers & Services 0.8% | ||||||||
Brookdale Senior Living, Inc.* | 2,339 | 15,811 | ||||||
Magellan Health, Inc.* | 270 | 18,390 | ||||||
National HealthCare Corp. | 209 | 17,015 | ||||||
Owens & Minor, Inc. | 2,622 | 16,361 | ||||||
Patterson Cos., Inc. | 787 | 17,747 | ||||||
Triple-S Management Corp. (Class B Stock)* | 850 | 21,624 | ||||||
|
| |||||||
106,948 | ||||||||
Health Care Technology 0.7% | ||||||||
Allscripts Healthcare Solutions, Inc.* | 1,454 | 15,587 | ||||||
Computer Programs & Systems, Inc. | 534 | 17,590 | ||||||
Evolent Health, Inc. (Class A Stock)* | 1,241 | 16,369 | ||||||
HMS Holdings Corp.* | 556 | 19,160 | ||||||
NextGen Healthcare, Inc.* | 941 | 16,467 | ||||||
|
| |||||||
85,173 |
See Notes to Financial Statements.
72 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Hotels, Restaurants & Leisure 1.9% | ||||||||
BBX Capital Corp. (Class A Stock) | 2,728 | $ | 16,695 | |||||
Biglari Holdings, Inc., | ||||||||
(Class A Stock)* | 26 | 18,174 | ||||||
(Class B Stock)* | 116 | 15,545 | ||||||
Century Casinos, Inc.* | 2,018 | 17,012 | ||||||
Del Taco Restaurants, Inc.* | 1,498 | 15,489 | ||||||
Denny’s Corp.* | 972 | 16,971 | ||||||
El Pollo Loco Holdings, Inc.* | 1,134 | 17,158 | ||||||
Fiesta Restaurant Group, Inc.* | 1,108 | 16,698 | ||||||
J Alexander’s Holdings, Inc.* | 1,753 | 16,005 | ||||||
Jack in the Box, Inc. | 209 | 16,833 | ||||||
RCI Hospitality Holdings, Inc. | 734 | 17,168 | ||||||
Red Robin Gourmet Burgers, Inc.* | 488 | 14,840 | ||||||
Speedway Motorsports, Inc. | 1,041 | 18,384 | ||||||
Wingstop, Inc. | 259 | 17,252 | ||||||
|
| |||||||
234,224 | ||||||||
Household Durables 1.5% | ||||||||
Beazer Homes USA, Inc.* | 1,299 | 15,744 | ||||||
Ethan Allen Interiors, Inc. | 890 | 17,871 | ||||||
Flexsteel Industries, Inc. | 679 | 16,900 | ||||||
Hooker Furniture Corp. | 568 | 17,835 | ||||||
La-Z-Boy, Inc. | 485 | 16,689 | ||||||
Lifetime Brands, Inc. | 1,635 | 17,102 | ||||||
M/I Homes, Inc.* | 630 | 16,405 | ||||||
Meritage Homes Corp.* | 382 | 16,751 | ||||||
Taylor Morrison Home Corp. (Class A Stock)* | 1,048 | 17,575 | ||||||
TRI Pointe Group, Inc.* | 1,313 | 16,544 | ||||||
Universal Electronics, Inc.* | 591 | 19,734 | ||||||
|
| |||||||
189,150 | ||||||||
Household Products 0.3% | ||||||||
Central Garden & Pet Co. (Class A Stock)* | 576 | 16,042 | ||||||
Oil-Dri Corp. of America | 595 | 17,344 | ||||||
|
| |||||||
33,386 | ||||||||
Independent Power and Renewable Electricity Producers 0.4% | ||||||||
Atlantic Power Corp.* | 6,677 | 17,961 | ||||||
Clearway Energy, Inc., | ||||||||
(Class A Stock) | 1,228 | 18,125 | ||||||
(Class C Stock) | 1,202 | 18,018 | ||||||
|
| |||||||
54,104 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 73 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Insurance 3.8% | ||||||||
Ambac Financial Group, Inc.* | 909 | $ | 17,971 | |||||
American Equity Investment Life Holding Co. | 495 | 15,667 | ||||||
AMERISAFE, Inc. | 261 | 16,472 | ||||||
Argo Group International Holdings Ltd. | 258 | 17,934 | ||||||
CNO Financial Group, Inc. | 1,005 | 17,115 | ||||||
Crawford & Co. (Class B Stock) | 1,833 | 18,843 | ||||||
Donegal Group, Inc. (Class A Stock) | 1,295 | 17,444 | ||||||
Employers Holdings, Inc. | 370 | 15,414 | ||||||
Enstar Group Ltd.* | 96 | 17,127 | ||||||
FBL Financial Group, Inc. (Class A Stock) | 236 | 16,489 | ||||||
FedNat Holding Co. | 922 | 16,826 | ||||||
Genworth Financial, Inc. (Class A Stock)* | 3,673 | 14,215 | ||||||
Global Indemnity Ltd. | 444 | 17,130 | ||||||
Hallmark Financial Services, Inc.* | 1,553 | 16,229 | ||||||
HCI Group, Inc. | 365 | 16,848 | ||||||
Heritage Insurance Holdings, Inc. | 1,157 | 17,262 | ||||||
Independence Holding Co. | 438 | 16,727 | ||||||
Investors Title Co. | 93 | 15,848 | ||||||
MBIA, Inc.* | 1,834 | 18,212 | ||||||
National General Holdings Corp. | 674 | 17,396 | ||||||
National Western Life Group, Inc. (Class A Stock) | 59 | 18,172 | ||||||
NI Holdings, Inc.* | 1,098 | 16,569 | ||||||
Protective Insurance Corp. (Class B Stock) | 743 | 15,685 | ||||||
Safety Insurance Group, Inc. | 195 | 17,421 | ||||||
Third Point Reinsurance Ltd.* | 1,641 | 17,542 | ||||||
Tiptree, Inc. | 2,979 | 18,261 | ||||||
United Fire Group, Inc. | 347 | 16,913 | ||||||
United Insurance Holdings Corp. | 1,079 | 17,674 | ||||||
|
| |||||||
475,406 | ||||||||
Interactive Media & Services 0.1% | ||||||||
Cars.com, Inc.* | 698 | 16,431 | ||||||
Internet & Direct Marketing Retail 0.3% | ||||||||
1-800-Flowers.com, Inc. (Class A Stock)* | 993 | 17,715 | ||||||
Liberty Expedia Holdings, Inc. (Class A Stock)* | 406 | 17,986 | ||||||
|
| |||||||
35,701 | ||||||||
IT Services 1.1% | ||||||||
CACI International, Inc. (Class A Stock)* | 94 | 17,132 | ||||||
CSG Systems International, Inc. | 458 | 19,030 | ||||||
Information Services Group, Inc.* | 4,131 | 17,804 |
See Notes to Financial Statements.
74 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
IT Services (cont’d.) | ||||||||
ManTech International Corp. (Class A Stock) | 322 | $ | 17,501 | |||||
Perficient, Inc.* | 670 | 19,169 | ||||||
Perspecta, Inc. | 739 | 15,593 | ||||||
Presidio, Inc. | 1,063 | 17,678 | ||||||
Sykes Enterprises, Inc.* | 586 | 17,340 | ||||||
|
| |||||||
141,247 | ||||||||
Leisure Products 0.5% | ||||||||
Acushnet Holdings Corp. | 675 | 16,814 | ||||||
Clarus Corp. | 1,473 | 17,941 | ||||||
Escalade, Inc. | 1,410 | 17,202 | ||||||
Johnson Outdoors, Inc. (Class A Stock) | 260 | 17,067 | ||||||
|
| |||||||
69,024 | ||||||||
Life Sciences Tools & Services 0.4% | ||||||||
Harvard Bioscience, Inc.* | 4,215 | 16,944 | ||||||
Luminex Corp. | 671 | 17,097 | ||||||
Syneos Health, Inc. (Class A Stock)* | 336 | 14,035 | ||||||
|
| |||||||
48,076 | ||||||||
Machinery 3.7% | ||||||||
Alamo Group, Inc. | 194 | 18,632 | ||||||
Altra Industrial Motion Corp. | 513 | 16,318 | ||||||
Barnes Group, Inc. | 296 | 17,189 | ||||||
Blue Bird Corp.* | 884 | 16,442 | ||||||
Columbus McKinnon Corp. | 466 | 17,452 | ||||||
Eastern Co. (The) | 609 | 17,722 | ||||||
ESCO Technologies, Inc. | 269 | 18,612 | ||||||
Federal Signal Corp. | 725 | 17,820 | ||||||
Franklin Electric Co., Inc. | 315 | 16,761 | ||||||
Global Brass & Copper Holdings, Inc. | 544 | 18,360 | ||||||
Gorman-Rupp Co. (The) | 475 | 16,060 | ||||||
Greenbrier Cos., Inc. (The) | 416 | 17,160 | ||||||
Hurco Cos., Inc. | 408 | 17,495 | ||||||
Hyster-Yale Materials Handling, Inc. | 233 | 15,765 | ||||||
Kennametal, Inc. | 439 | 16,546 | ||||||
LB Foster Co. (Class A Stock)* | 977 | 16,912 | ||||||
Manitowoc Co., Inc. (The)* | 903 | 16,245 | ||||||
Milacron Holdings Corp.* | 1,211 | 16,942 | ||||||
Miller Industries, Inc. | 518 | 17,565 | ||||||
Mueller Water Products, Inc. (Class A Stock) | 1,543 | 16,109 | ||||||
Park-Ohio Holdings Corp. | 519 | 16,499 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 75 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Machinery (cont’d.) | ||||||||
Rexnord Corp.* | 591 | $ | 15,762 | |||||
SPX FLOW, Inc.* | 459 | 15,845 | ||||||
Standex International Corp. | 215 | 17,632 | ||||||
TriMas Corp.* | 573 | 18,525 | ||||||
Wabash National Corp. | 1,188 | 17,630 | ||||||
Watts Water Technologies, Inc. (Class A Stock) | 229 | 18,444 | ||||||
|
| |||||||
462,444 | ||||||||
Marine 0.7% | ||||||||
Costamare, Inc. | 3,205 | 16,666 | ||||||
Eagle Bulk Shipping, Inc.* | 3,602 | 17,614 | ||||||
Genco Shipping & Trading Ltd.* | 2,119 | 17,248 | ||||||
Matson, Inc. | 491 | 17,730 | ||||||
Scorpio Bulkers, Inc. | 4,329 | 18,355 | ||||||
|
| |||||||
87,613 | ||||||||
Media 2.2% | ||||||||
Clear Channel Outdoor Holdings, Inc. (Class A Stock)* | 3,111 | 17,048 | ||||||
Entercom Communications Corp. (Class A Stock) | 2,371 | 14,605 | ||||||
Entravision Communications Corp. (Class A Stock) | 4,670 | 18,447 | ||||||
Fluent, Inc.* | 3,431 | 17,532 | ||||||
Gray Television, Inc.* | 961 | 21,056 | ||||||
Hemisphere Media Group, Inc. (Class A Stock)* | 1,216 | 16,902 | ||||||
Liberty Latin America Ltd., | ||||||||
(Class A Stock)* | 909 | 17,835 | ||||||
(Class C Stock)* | 911 | 17,664 | ||||||
Meredith Corp. | 296 | 16,952 | ||||||
MSG Networks, Inc. (Class A Stock)* | 732 | 17,671 | ||||||
New Media Investment Group, Inc. | 1,263 | 16,823 | ||||||
Saga Communications, Inc. (Class A Stock) | 463 | 15,557 | ||||||
Scholastic Corp. | 368 | 15,570 | ||||||
Sinclair Broadcast Group, Inc. (Class A Stock) | 539 | 19,458 | ||||||
TEGNA, Inc. | 1,341 | 17,661 | ||||||
WideOpenWest, Inc.* | 2,086 | 17,147 | ||||||
|
| |||||||
277,928 | ||||||||
Metals & Mining 0.7% | ||||||||
Allegheny Technologies, Inc.* | 605 | 17,321 | ||||||
Materion Corp. | 303 | 17,508 | ||||||
Schnitzer Steel Industries, Inc. (Class A Stock) | 713 | 17,326 | ||||||
Universal Stainless & Alloy Products, Inc.* | 958 | 17,608 | ||||||
Worthington Industries, Inc. | 446 | 17,532 | ||||||
|
| |||||||
87,295 |
See Notes to Financial Statements.
76 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Mortgage Real Estate Investment Trusts (REITs) 2.7% | ||||||||
AG Mortgage Investment Trust, Inc. | 931 | $ | 16,553 | |||||
Anworth Mortgage Asset Corp. | 3,849 | 16,397 | ||||||
Arbor Realty Trust, Inc. | 1,344 | 17,391 | ||||||
Ares Commercial Real Estate Corp. | 1,159 | 17,686 | ||||||
Arlington Asset Investment Corp. (Class A Stock) | 1,998 | 16,563 | ||||||
ARMOUR Residential REIT, Inc. | 854 | 17,123 | ||||||
Capstead Mortgage Corp. | 2,125 | 17,638 | ||||||
Cherry Hill Mortgage Investment Corp. | 894 | 16,575 | ||||||
Colony Credit Real Estate, Inc. | 984 | 17,151 | ||||||
Dynex Capital, Inc. | 2,805 | 17,110 | ||||||
Exantas Capital Corp. | 1,546 | 16,774 | ||||||
Great Ajax Corp. | 1,245 | 16,471 | ||||||
Invesco Mortgage Capital, Inc. | 1,105 | 17,592 | ||||||
KKR Real Estate Finance Trust, Inc. | 823 | 16,765 | ||||||
Ladder Capital Corp. (Class A Stock) | 964 | 17,689 | ||||||
New York Mortgage Trust, Inc. | 2,759 | 16,554 | ||||||
PennyMac Mortgage Investment Trust | 816 | 16,630 | ||||||
Ready Capital Corp. | 1,139 | 18,372 | ||||||
TPG RE Finance Trust, Inc. | 840 | 16,817 | ||||||
Western Asset Mortgage Capital Corp. | 1,663 | 16,680 | ||||||
|
| |||||||
340,531 | ||||||||
Multiline Retail 0.3% | ||||||||
Big Lots, Inc. | 553 | 17,436 | ||||||
Dillard’s, Inc. (Class A Stock) | 263 | 20,656 | ||||||
|
| |||||||
38,092 | ||||||||
Multi-Utilities 0.1% | ||||||||
Unitil Corp. | 320 | 17,571 | ||||||
Oil, Gas & Consumable Fuels 3.2% | ||||||||
Adams Resources & Energy, Inc. | 431 | 17,128 | ||||||
Arch Coal, Inc. (Class A Stock) | 179 | 16,676 | ||||||
Bonanza Creek Energy, Inc.* | 733 | 16,837 | ||||||
Clean Energy Fuels Corp.* | 7,114 | 16,291 | ||||||
CONSOL Energy, Inc.* | 464 | 17,609 | ||||||
CVR Energy, Inc. | 419 | 16,986 | ||||||
Delek US Holdings, Inc. | 444 | 15,709 | ||||||
Dorian LPG Ltd.* | 2,846 | 16,791 | ||||||
GasLog Ltd. | 1,018 | 16,410 | ||||||
Green Plains, Inc. | 1,117 | 17,425 | ||||||
Gulfport Energy Corp.* | 2,183 | 16,722 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 77 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Oil, Gas & Consumable Fuels (cont’d.) | ||||||||
Hallador Energy Co. | 3,048 | $ | 16,368 | |||||
International Seaways, Inc.* | 1,001 | 16,657 | ||||||
NACCO Industries, Inc. (Class A Stock) | 459 | 16,786 | ||||||
Overseas Shipholding Group, Inc. (Class A Stock)* | 8,066 | 15,890 | ||||||
Panhandle Oil & Gas, Inc. (Class A Stock) | 1,071 | 17,586 | ||||||
Par Pacific Holdings, Inc.* | 1,034 | 17,474 | ||||||
Peabody Energy Corp. | 583 | 17,985 | ||||||
Renewable Energy Group, Inc.* | 671 | 17,828 | ||||||
SandRidge Energy, Inc.* | 2,140 | 16,628 | ||||||
Ship Finance International Ltd. | 1,359 | 16,838 | ||||||
SilverBow Resources, Inc.* | 788 | 17,730 | ||||||
Teekay Tankers Ltd. (Class A Stock) | 14,790 | 15,825 | ||||||
World Fuel Services Corp. | 662 | 18,331 | ||||||
|
| |||||||
406,510 | ||||||||
Paper & Forest Products 0.5% | ||||||||
Boise Cascade Co. | 596 | 16,622 | ||||||
Clearwater Paper Corp.* | 511 | 14,615 | ||||||
PH Glatfelter Co. | 1,233 | 16,584 | ||||||
Verso Corp. (Class A Stock)* | 639 | 12,556 | ||||||
|
| |||||||
60,377 | ||||||||
Personal Products 0.4% | ||||||||
Edgewell Personal Care Co.* | 365 | 16,191 | ||||||
Inter Parfums, Inc. | 237 | 17,483 | ||||||
Nature’s Sunshine Products, Inc.* | 1,915 | 15,894 | ||||||
|
| |||||||
49,568 | ||||||||
Pharmaceuticals 0.9% | ||||||||
Akorn, Inc.* | 4,255 | 17,233 | ||||||
Aratana Therapeutics, Inc.* | 4,019 | 16,157 | ||||||
Lannett Co., Inc.* | 1,856 | 17,465 | ||||||
Mallinckrodt PLC* | 846 | 21,116 | ||||||
Menlo Therapeutics, Inc.* | 2,381 | 20,262 | ||||||
Prestige Consumer Healthcare, Inc.* | 600 | 17,556 | ||||||
|
| |||||||
109,789 | ||||||||
Professional Services 1.4% | ||||||||
Acacia Research Corp.* | 5,564 | 16,970 | ||||||
CBIZ, Inc.* | 773 | 15,947 | ||||||
CRA International, Inc. | 378 | 18,885 | ||||||
FTI Consulting, Inc.* | 250 | 18,540 |
See Notes to Financial Statements.
78 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Professional Services (cont’d.) | ||||||||
Huron Consulting Group, Inc.* | 314 | $ | 14,388 | |||||
ICF International, Inc. | 228 | 17,219 | ||||||
Kelly Services, Inc. (Class A Stock) | 724 | 17,470 | ||||||
Mistras Group, Inc.* | 1,003 | 15,827 | ||||||
Navigant Consulting, Inc. | 646 | 13,301 | ||||||
Resources Connection, Inc. | 1,020 | 17,717 | ||||||
TrueBlue, Inc.* | 685 | 15,769 | ||||||
|
| |||||||
182,033 | ||||||||
Real Estate Management & Development 0.9% | ||||||||
Altisource Portfolio Solutions SA* | 738 | 18,502 | ||||||
Consolidated-Tomoka Land Co. | 290 | 17,139 | ||||||
Forestar Group, Inc.* | 987 | 16,749 | ||||||
FRP Holdings, Inc.* | 335 | 17,169 | ||||||
Kennedy-Wilson Holdings, Inc. | 869 | 18,058 | ||||||
St Joe Co. (The)* | 1,075 | 16,705 | ||||||
Stratus Properties, Inc.* | 629 | 15,285 | ||||||
|
| |||||||
119,607 | ||||||||
Road & Rail 0.4% | ||||||||
ArcBest Corp. | 460 | 16,022 | ||||||
Covenant Transportation Group, Inc. (Class A Stock)* | 711 | 16,218 | ||||||
Werner Enterprises, Inc. | 513 | 17,714 | ||||||
|
| |||||||
49,954 | ||||||||
Semiconductors & Semiconductor Equipment 1.2% | ||||||||
Alpha & Omega Semiconductor Ltd.* | 1,643 | 17,679 | ||||||
Amkor Technology, Inc.* | 1,858 | 16,313 | ||||||
AXT, Inc.* | 4,224 | 18,839 | ||||||
Cirrus Logic, Inc.* | 474 | 19,022 | ||||||
Cohu, Inc. | 918 | 16,423 | ||||||
Diodes, Inc.* | 423 | 17,059 | ||||||
Photronics, Inc.* | 1,801 | 17,668 | ||||||
Rambus, Inc.* | 1,651 | 16,956 | ||||||
Synaptics, Inc.* | 422 | 17,669 | ||||||
|
| |||||||
157,628 | ||||||||
Software 1.3% | ||||||||
ACI Worldwide, Inc.* | 554 | 17,656 | ||||||
Agilysys, Inc.* | 831 | 17,368 | ||||||
American Software, Inc. (Class A Stock) | 1,477 | 17,118 | ||||||
Avaya Holdings Corp.* | 1,059 | 16,404 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 79 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Software (cont’d.) | ||||||||
MicroStrategy, Inc. (Class A Stock)* | 122 | $ | 17,263 | |||||
Monotype Imaging Holdings, Inc. | 949 | 18,600 | ||||||
Telaria, Inc.* | 5,425 | 30,272 | ||||||
TiVo Corp. | 1,547 | 15,516 | ||||||
Verint Systems, Inc.* | 331 | 17,626 | ||||||
|
| |||||||
167,823 | ||||||||
Specialty Retail 4.4% | ||||||||
Abercrombie & Fitch Co. (Class A Stock) | 866 | 19,009 | ||||||
American Eagle Outfitters, Inc. | 883 | 18,013 | ||||||
America’sCar-Mart, Inc.* | 206 | 16,810 | ||||||
Bed Bath & Beyond, Inc. | 1,047 | 17,516 | ||||||
Big 5 Sporting Goods Corp. | 4,463 | 17,986 | ||||||
Caleres, Inc. | 587 | 18,256 | ||||||
Cato Corp. (The) (Class A Stock) | 1,168 | 18,384 | ||||||
Chico’s FAS, Inc. | 3,233 | 18,881 | ||||||
Citi Trends, Inc. | 850 | 18,394 | ||||||
Conn’s, Inc.* | 777 | 18,329 | ||||||
Container Store Group, Inc. (The)* | 2,745 | 18,748 | ||||||
DSW, Inc. (Class A Stock) | 621 | 18,388 | ||||||
Express, Inc.* | 3,397 | 17,664 | ||||||
GameStop Corp. (Class A Stock) | 1,574 | 18,416 | ||||||
Genesco, Inc.* | 376 | 18,150 | ||||||
Group 1 Automotive, Inc. | 294 | 18,281 | ||||||
Guess?, Inc. | 778 | 17,419 | ||||||
Haverty Furniture Cos., Inc. | 790 | 19,244 | ||||||
Hibbett Sports, Inc.* | 986 | 18,281 | ||||||
J. Jill, Inc.* | 3,145 | 18,713 | ||||||
Kirkland’s, Inc.* | 1,578 | 18,431 | ||||||
Lithia Motors, Inc. (Class A Stock) | 201 | 18,144 | ||||||
MarineMax, Inc.* | 912 | 17,903 | ||||||
Murphy USA, Inc.* | 213 | 16,565 | ||||||
Office Depot, Inc. | 5,251 | 18,221 | ||||||
Rent-A-Center, Inc.* | 963 | 17,922 | ||||||
Sally Beauty Holdings, Inc.* | 971 | 17,546 | ||||||
Signet Jewelers Ltd. | 681 | 19,143 | ||||||
Sonic Automotive, Inc. (Class A Stock) | 1,174 | 17,645 | ||||||
Tilly’s, Inc. (Class A Stock) | 1,485 | 18,013 | ||||||
Zumiez, Inc.* | 692 | 17,092 | ||||||
|
| |||||||
561,507 |
See Notes to Financial Statements.
80 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Technology Hardware, Storage & Peripherals 0.3% | ||||||||
Cray, Inc.* | 769 | $ | 18,864 | |||||
Stratasys Ltd.* | 625 | 17,787 | ||||||
|
| |||||||
36,651 | ||||||||
Textiles, Apparel & Luxury Goods 0.6% | ||||||||
Culp, Inc. | 931 | 17,270 | ||||||
Movado Group, Inc. | 516 | 18,075 | ||||||
Rocky Brands, Inc. | 610 | 18,270 | ||||||
Vera Bradley, Inc.* | 1,810 | 17,286 | ||||||
|
| �� | ||||||
70,901 | ||||||||
Thrifts & Mortgage Finance 4.0% | ||||||||
Bank7 Corp.* | 1,055 | 16,880 | ||||||
BankFinancial Corp. | 1,174 | 18,361 | ||||||
Dime Community Bancshares, Inc. | 858 | 17,143 | ||||||
ESSA Bancorp, Inc. | 1,044 | 16,694 | ||||||
Essent Group Ltd.* | 421 | 18,162 | ||||||
First Defiance Financial Corp. | 611 | 18,904 | ||||||
Flagstar Bancorp, Inc. | 533 | 17,408 | ||||||
FS Bancorp, Inc. | 363 | 18,822 | ||||||
Home Bancorp, Inc. | 494 | 17,473 | ||||||
Luther Burbank Corp. | 1,716 | 17,949 | ||||||
Meridian Bancorp, Inc. | 1,056 | 17,202 | ||||||
MGIC Investment Corp.* | 1,371 | 17,796 | ||||||
NMI Holdings, Inc. (Class A Stock)* | 704 | 17,002 | ||||||
OceanFirst Financial Corp. | 679 | 17,111 | ||||||
OP Bancorp | 1,864 | 16,925 | ||||||
Oritani Financial Corp. | 976 | 17,519 | ||||||
PCSB Financial Corp. | 880 | 17,890 | ||||||
PDL Community Bancorp* | 1,321 | 17,292 | ||||||
Prudential Bancorp, Inc. | 961 | 17,461 | ||||||
Radian Group, Inc. | 865 | 17,611 | ||||||
Riverview Bancorp, Inc. | 2,290 | 17,725 | ||||||
Southern Missouri Bancorp, Inc. | 501 | 18,126 | ||||||
Sterling Bancorp, Inc. | 1,806 | 18,222 | ||||||
Territorial Bancorp, Inc. | 609 | 17,113 | ||||||
Timberland Bancorp, Inc. | 568 | 17,381 | ||||||
TrustCo Bank Corp. NY | 2,030 | 17,194 | ||||||
United Community Financial Corp. | 1,799 | 18,026 | ||||||
United Financial Bancorp, Inc. | 1,079 | 16,757 | ||||||
Walker & Dunlop, Inc. | 305 | 17,019 | ||||||
|
| |||||||
509,168 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 81 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||||||||||
COMMON STOCKS (Continued) | ||||||||||||||||
Tobacco 0.3% | ||||||||||||||||
Universal Corp. | 291 | $ | 17,268 | |||||||||||||
Vector Group Ltd. | 1,409 | 16,513 | ||||||||||||||
|
| |||||||||||||||
33,781 | ||||||||||||||||
Trading Companies & Distributors 1.8% | ||||||||||||||||
Aircastle Ltd. | 885 | 17,576 | ||||||||||||||
BMC Stock Holdings, Inc.* | 1,043 | 19,953 | ||||||||||||||
CAI International, Inc.* | 754 | 17,764 | ||||||||||||||
DXP Enterprises, Inc.* | 479 | 16,942 | ||||||||||||||
Foundation Building Materials, Inc.* | 1,785 | 19,849 | ||||||||||||||
GMS, Inc.* | 843 | 16,481 | ||||||||||||||
Rush Enterprises, Inc., | ||||||||||||||||
(Class A Stock) | 402 | 16,852 | ||||||||||||||
(Class B Stock) | 450 | 18,585 | ||||||||||||||
Systemax, Inc. | 708 | 14,344 | ||||||||||||||
Textainer Group Holdings Ltd.* | 1,443 | 15,743 | ||||||||||||||
Titan Machinery, Inc.* | 902 | 17,327 | ||||||||||||||
Veritiv Corp.* | 528 | 15,254 | ||||||||||||||
Willis Lease Finance Corp.* | 449 | 18,885 | ||||||||||||||
|
| |||||||||||||||
225,555 | ||||||||||||||||
Water Utilities 1.1% | ||||||||||||||||
American States Water Co. | 260 | 18,494 | ||||||||||||||
AquaVenture Holdings Ltd.* | 790 | 17,475 | ||||||||||||||
Artesian Resources Corp. (Class A Stock) | 458 | 17,972 | ||||||||||||||
Consolidated Water Co. Ltd. | 1,258 | 16,618 | ||||||||||||||
Middlesex Water Co. | 300 | 17,661 | ||||||||||||||
Pure Cycle Corp.* | 1,719 | 17,430 | ||||||||||||||
SJW Group | 265 | 16,210 | ||||||||||||||
York Water Co. (The) | 482 | 17,569 | ||||||||||||||
|
| |||||||||||||||
139,429 | ||||||||||||||||
Wireless Telecommunication Services 0.1% | ||||||||||||||||
Spok Holdings, Inc. | 1,144 | 15,799 | ||||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS |
| 12,585,648 | ||||||||||||||
|
|
See Notes to Financial Statements.
82 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SHORT-TERM INVESTMENT 0.4% |
| |||||||||||||||
TIME DEPOSIT |
| |||||||||||||||
Citibank, NA | 1.750 | % | 03/01/19 | 55 | $ | 54,667 | ||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 99.9% |
| 12,640,315 | ||||||||||||||
Other assets in excess of liabilities 0.1% |
| 11,323 | ||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% |
| $ | 12,651,638 | |||||||||||||
|
|
The following abbreviations are used in the semi-annual report:
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
* | Non-income producing security. |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of February 28, 2019 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 120,009 | $ | — | $ | — | ||||||
Air Freight & Logistics | 51,368 | — | — | |||||||||
Airlines | 33,272 | — | — | |||||||||
Auto Components | 51,312 | — | — | |||||||||
Banks | 2,382,649 | — | — | |||||||||
Biotechnology | 191,113 | — | — | |||||||||
Building Products | 117,067 | — | — | |||||||||
Capital Markets | 188,964 | — | — |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 83 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Chemicals | $ | 231,070 | $ | — | $ | — | ||||||
Commercial Services & Supplies | 292,942 | — | — | |||||||||
Communications Equipment | 241,496 | — | — | |||||||||
Construction & Engineering | 139,109 | — | — | |||||||||
Construction Materials | 16,272 | — | — | |||||||||
Consumer Finance | 69,131 | — | — | |||||||||
Containers & Packaging | 50,719 | — | — | |||||||||
Distributors | 36,479 | — | — | |||||||||
Diversified Consumer Services | 84,142 | — | — | |||||||||
Diversified Financial Services | 73,420 | — | — | |||||||||
Electric Utilities | 87,541 | — | — | |||||||||
Electrical Equipment | 68,279 | — | — | |||||||||
Electronic Equipment, Instruments & Components | 341,236 | — | — | |||||||||
Energy Equipment��& Services | 197,236 | — | — | |||||||||
Entertainment | 35,449 | — | — | |||||||||
Equity Real Estate Investment Trusts (REITs) | 1,148,038 | — | — | |||||||||
Food & Staples Retailing | 158,244 | — | — | |||||||||
Food Products | 172,102 | — | — | |||||||||
Gas Utilities | 86,867 | — | — | |||||||||
Health Care Equipment & Supplies | 223,698 | — | — | |||||||||
Health Care Providers & Services | 106,948 | — | — | |||||||||
Health Care Technology | 85,173 | — | — | |||||||||
Hotels, Restaurants & Leisure | 234,224 | — | — | |||||||||
Household Durables | 189,150 | — | — | |||||||||
Household Products | 33,386 | — | — | |||||||||
Independent Power and Renewable Electricity Producers | 54,104 | — | — | |||||||||
Insurance | 475,406 | — | — | |||||||||
Interactive Media & Services | 16,431 | — | — | |||||||||
Internet & Direct Marketing Retail | 35,701 | — | — | |||||||||
IT Services | 141,247 | — | — | |||||||||
Leisure Products | 69,024 | — | — | |||||||||
Life Sciences Tools & Services | 48,076 | — | — | |||||||||
Machinery | 462,444 | — | — | |||||||||
Marine | 87,613 | — | — | |||||||||
Media | 277,928 | — | — | |||||||||
Metals & Mining | 87,295 | — | — | |||||||||
Mortgage Real Estate Investment Trusts (REITs) | 340,531 | — | — | |||||||||
Multiline Retail | 38,092 | — | — | |||||||||
Multi-Utilities | 17,571 | — | — | |||||||||
Oil, Gas & Consumable Fuels | 406,510 | — | — |
See Notes to Financial Statements.
84 |
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Paper & Forest Products | $ | 60,377 | $ | — | $ | — | ||||||
Personal Products | 49,568 | — | — | |||||||||
Pharmaceuticals | 109,789 | — | — | |||||||||
Professional Services | 182,033 | — | — | |||||||||
Real Estate Management & Development | 119,607 | — | — | |||||||||
Road & Rail | 49,954 | — | — | |||||||||
Semiconductors & Semiconductor Equipment | 157,628 | — | — | |||||||||
Software | 167,823 | — | — | |||||||||
Specialty Retail | 561,507 | — | — | |||||||||
Technology Hardware, Storage & Peripherals | 36,651 | — | — | |||||||||
Textiles, Apparel & Luxury Goods | 70,901 | — | — | |||||||||
Thrifts & Mortgage Finance | 509,168 | — | — | |||||||||
Tobacco | 33,781 | — | — | |||||||||
Trading Companies & Distributors | 225,555 | — | — | |||||||||
Water Utilities | 139,429 | — | — | |||||||||
Wireless Telecommunication Services | 15,799 | — | — | |||||||||
Time Deposit | — | 54,667 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 12,585,648 | $ | 54,667 | $ | — | ||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of February 28, 2019 were as follows (unaudited):
Banks | 18.8 | % | ||
Equity Real Estate Investment Trusts (REITs) | 9.1 | |||
Specialty Retail | 4.4 | |||
Thrifts & Mortgage Finance | 4.0 | |||
Insurance | 3.8 | |||
Machinery | 3.7 | |||
Oil, Gas & Consumable Fuels | 3.2 | |||
Mortgage Real Estate Investment Trusts (REITs) | 2.7 | |||
Electronic Equipment, Instruments & Components | 2.7 | |||
Commercial Services & Supplies | 2.3 | |||
Media | 2.2 | |||
Communications Equipment | 1.9 | |||
Hotels, Restaurants & Leisure | 1.9 | |||
Health Care Equipment & Supplies | 1.8 | |||
Trading Companies & Distributors | 1.8 | |||
Chemicals | 1.8 | |||
Energy Equipment & Services | 1.6 | |||
Household Durables | 1.5 | % | ||
Biotechnology | 1.5 | |||
Capital Markets | 1.5 | |||
Professional Services | 1.4 | |||
Food Products | 1.4 | |||
Food & Staples Retailing | 1.3 | |||
Software | 1.3 | |||
Semiconductors & Semiconductor Equipment | 1.2 | |||
Water Utilities | 1.1 | |||
IT Services | 1.1 | |||
Construction & Engineering | 1.1 | |||
Aerospace & Defense | 0.9 | |||
Pharmaceuticals | 0.9 | |||
Real Estate Management & Development | 0.9 | |||
Building Products | 0.9 | |||
Health Care Providers & Services | 0.8 | |||
Marine | 0.7 | |||
Health Care Technology | 0.7 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 85 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Industry Classification (cont’d.) | ||||
Diversified Consumer Services | 0.7 | % | ||
Gas Utilities | 0.7 | |||
Electric Utilities | 0.7 | |||
Metals & Mining | 0.7 | |||
Textiles, Apparel & Luxury Goods | 0.6 | |||
Diversified Financial Services | 0.6 | |||
Leisure Products | 0.5 | |||
Consumer Finance | 0.5 | |||
Electrical Equipment | 0.5 | |||
Paper & Forest Products | 0.5 | |||
Containers & Packaging | 0.4 | |||
Air Freight & Logistics | 0.4 | |||
Independent Power and Renewable Electricity Producers | 0.4 | |||
Road & Rail | 0.4 | |||
Life Sciences Tools & Services | 0.4 | |||
Auto Components | 0.4 | |||
Personal Products | 0.4 | |||
Time Deposit | 0.4 | % | ||
Tobacco | 0.3 | |||
Entertainment | 0.3 | |||
Multiline Retail | 0.3 | |||
Household Products | 0.3 | |||
Internet & Direct Marketing Retail | 0.3 | |||
Distributors | 0.3 | |||
Technology Hardware, Storage & Peripherals | 0.3 | |||
Airlines | 0.3 | |||
Interactive Media & Services | 0.1 | |||
Construction Materials | 0.1 | |||
Multi-Utilities | 0.1 | |||
Wireless Telecommunication Services | 0.1 | |||
|
| |||
99.9 | ||||
Other assets in excess of liabilities | 0.1 | |||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
86 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Statement of Assets & Liabilities(unaudited)
as of February 28, 2019
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $12,619,867) | $ | 12,640,315 | ||
Cash | 273 | |||
Dividends receivable | 12,462 | |||
Receivable for investments sold | 1,354 | |||
|
| |||
Total assets | 12,654,404 | |||
|
| |||
Liabilities | ||||
Management fee payable | 2,766 | |||
|
| |||
Total Liabilities | 2,766 | |||
|
| |||
Net Assets | $ | 12,651,638 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 250 | ||
Paid-in capital in excess of par | 12,488,450 | |||
|
| |||
12,488,700 | ||||
Total distributable earnings (loss) | 162,938 | |||
|
| |||
Net assets, February 28, 2019 | $ | 12,651,638 | ||
|
| |||
Net asset value, offering price and redemption price per share, ($ 12,651,638 / 250,000 shares of common stock issued and outstanding) | $ | 50.61 |
| |
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 87 |
PGIM QMA Strategic AlphaSmall-Cap Value ETF
Statement of Operations(unaudited)
Period Ended February 28, 2019*
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 1,933 | ||
Unaffiliated dividend income | 77,761 | |||
|
| |||
Total income | 79,694 | |||
|
| |||
Expenses | ||||
Management fee | 9,938 | |||
|
| |||
Total expenses | 9,938 | |||
|
| |||
Net investment income (loss) | 69,756 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions | 119,049 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 20,448 | |||
|
| |||
Net gain (loss) on investment transactions | 139,497 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 209,253 | ||
|
|
* | For the period from November 13, 2018 (commencement of operations) through February 28, 2019. |
See Notes to Financial Statements.
88 |
PGIM QMA Strategic AlphaSmall-Cap Value ETF
Statement of Changes in Net Assets(unaudited)
Period Ended February 28, 2019* | ||||
Increase (Decrease) in Net Assets | ||||
Operations | ||||
Net investment income (loss) | $ | 69,756 | ||
Net realized gain (loss) on investments | 119,049 | |||
Net change in unrealized appreciation (depreciation) on investments | 20,448 | |||
|
| |||
Net increase (decrease) in net assets resulting from operations | 209,253 | |||
|
| |||
Dividends and Distributions | ||||
Distributions from distributable earnings | (46,315 | ) | ||
|
| |||
Fund share transactions (Net of share conversions) | ||||
Net proceeds from shares sold | 12,488,700 | |||
|
| |||
Net increase (decrease) in net assets from Fund share transactions | 12,488,700 | |||
|
| |||
Total increase (decrease) | 12,651,638 | |||
Net Assets: | ||||
Beginning of period | — | |||
|
| |||
End of period | $ | 12,651,638 | ||
|
|
* | For the period from November 13, 2018 (commencement of operations) through February 28, 2019. |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 89 |
PGIM QMA Strategic Alpha International Equity ETF
Schedule of Investments(unaudited)
as of February 28, 2019
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 98.4% | ||||||||
COMMON STOCKS 97.4% | ||||||||
Australia 6.0% | ||||||||
AGL Energy Ltd. | 4,316 | $ | 64,936 | |||||
Aurizon Holdings Ltd. | 19,283 | 61,826 | ||||||
AusNet Services | 52,544 | 64,667 | ||||||
Bank of Queensland Ltd. | 8,176 | 52,255 | ||||||
Bendigo & Adelaide Bank Ltd. | 7,602 | 53,170 | ||||||
BHP Group Ltd. | 2,646 | 69,878 | ||||||
BHP Group PLC | 3,095 | 71,674 | ||||||
BlueScope Steel Ltd. | 7,230 | 69,031 | ||||||
CIMIC Group Ltd. | 2,000 | 71,148 | ||||||
Cochlear Ltd. | 480 | 58,053 | ||||||
Coles Group Ltd.* | 6,934 | 55,728 | ||||||
Crown Resorts Ltd. | 6,940 | 56,416 | ||||||
Dexus | 7,762 | 66,182 | ||||||
Flight Centre Travel Group Ltd. | 1,662 | 53,960 | ||||||
Fortescue Metals Group Ltd. | 20,296 | 87,246 | ||||||
Goodman Group | 7,920 | 71,911 | ||||||
GPT Group (The) | 15,404 | 63,922 | ||||||
Mirvac Group | 37,069 | 67,578 | ||||||
Newcrest Mining Ltd. | 3,913 | 67,505 | ||||||
REA Group Ltd. | 1,068 | 61,774 | ||||||
Santos Ltd. | 14,707 | 72,192 | ||||||
Scentre Group | 20,816 | 57,144 | ||||||
Sonic Healthcare Ltd. | 3,562 | 60,944 | ||||||
Stockland | 22,303 | 55,372 | ||||||
Tabcorp Holdings Ltd. | 18,924 | 63,360 | ||||||
Telstra Corp. Ltd. | 27,707 | 61,517 | ||||||
Wesfarmers Ltd. | 2,570 | 60,488 | ||||||
Woodside Petroleum Ltd. | 2,615 | 67,242 | ||||||
Woolworths Group Ltd. | 2,808 | 57,106 | ||||||
|
| |||||||
1,844,225 | ||||||||
Austria 0.8% | ||||||||
ANDRITZ AG | 1,232 | 61,519 | ||||||
Erste Group Bank AG | 1,502 | 56,806 | ||||||
OMV AG | 1,174 | 61,787 | ||||||
voestalpine AG | 1,784 | 55,235 | ||||||
|
| |||||||
235,347 |
See Notes to Financial Statements.
90 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Belgium 0.8% | ||||||||
Ageas | 1,229 | $ | 60,572 | |||||
Colruyt SA | 929 | 66,255 | ||||||
Solvay SA | 548 | 61,347 | ||||||
UCB SA | 706 | 59,168 | ||||||
|
| |||||||
247,342 | ||||||||
China 0.2% | ||||||||
Yangzijiang Shipbuilding Holdings Ltd. | 65,500 | 69,279 | ||||||
Denmark 1.6% | ||||||||
AP Moller - Maersk A/S (Class A Stock) | 46 | 59,154 | ||||||
Carlsberg A/S (Class B Stock) | 536 | 64,931 | ||||||
Coloplast A/S (Class B Stock) | 623 | 62,097 | ||||||
H Lundbeck A/S | 1,444 | 66,043 | ||||||
Novo Nordisk A/S (Class B Stock) | 1,278 | 62,708 | ||||||
Novozymes A/S (Class B Stock) | 1,273 | 57,796 | ||||||
Orsted A/S | 912 | 66,182 | ||||||
William Demant Holding A/S* | 2,030 | 60,968 | ||||||
|
| |||||||
499,879 | ||||||||
Finland 1.7% | ||||||||
Fortum OYJ | 2,844 | 63,145 | ||||||
Kone OYJ (Class B Stock) | 1,198 | 58,554 | ||||||
Metso OYJ | 2,081 | 70,561 | ||||||
Neste OYJ | 760 | 73,047 | ||||||
Nokian Renkaat OYJ | 1,853 | 65,549 | ||||||
Nordea Bank Abp | 6,679 | 60,571 | ||||||
Orion OYJ (Class B Stock) | 1,777 | 63,488 | ||||||
Stora Enso OYJ (Class R Stock) | 4,652 | 62,359 | ||||||
|
| |||||||
517,274 | ||||||||
France 8.8% | ||||||||
Accor SA | 1,337 | 56,451 | ||||||
Aeroports de Paris | 306 | 59,379 | ||||||
Air Liquide SA | 491 | 61,238 | ||||||
Alstom SA | 1,351 | 58,732 | ||||||
Arkema SA | 625 | 63,015 | ||||||
Atos SE | 698 | 67,024 | ||||||
AXA SA | 2,434 | 61,725 | ||||||
BNP Paribas SA | 1,181 | 60,524 | ||||||
Bureau Veritas SA | 2,683 | 64,148 | ||||||
Carrefour SA | 3,294 | 67,442 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 91 |
PGIM QMA Strategic Alpha International Equity ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
France (cont’d.) | ||||||||
Casino Guichard Perrachon SA | 1,313 | $ | 69,431 | |||||
Cie de Saint-Gobain | 1,600 | 57,619 | ||||||
Cie Generale des Etablissements Michelin SCA | 568 | 68,161 | ||||||
CNP Assurances | 2,590 | 59,863 | ||||||
Covivio | 610 | 61,752 | ||||||
Credit Agricole SA | 4,775 | 61,005 | ||||||
Danone SA | 793 | 59,830 | ||||||
Eiffage SA | 624 | 60,884 | ||||||
Engie SA | 4,216 | 63,540 | ||||||
EssilorLuxottica SA | 468 | 56,666 | ||||||
Eurazeo SE | 792 | 59,547 | ||||||
Getlink SE | 4,564 | 67,383 | ||||||
Hermes International | 110 | 69,667 | ||||||
Ipsen SA | 461 | 63,763 | ||||||
Klepierre SA | 1,811 | 63,219 | ||||||
Legrand SA | 968 | 63,861 | ||||||
L’Oreal SA | 252 | 63,605 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 208 | 71,450 | ||||||
Natixis SA | 10,729 | 58,968 | ||||||
Pernod Ricard SA | 372 | 64,062 | ||||||
Peugeot SA | 2,700 | 68,670 | ||||||
Publicis Groupe SA | 1,001 | 55,483 | ||||||
Rexel SA | 4,943 | 61,622 | ||||||
Sanofi | 656 | 54,843 | ||||||
Schneider Electric SE | 815 | 63,427 | ||||||
Societe BIC SA | 553 | 52,302 | ||||||
Societe Generale SA | 1,614 | 49,568 | ||||||
Sodexo SA | 574 | 63,057 | ||||||
Thales SA | 484 | 59,594 | ||||||
TOTAL SA | 1,066 | 60,614 | ||||||
Unibail-Rodamco-Westfield | 346 | 55,885 | ||||||
Veolia Environnement SA | 2,789 | 61,226 | ||||||
Vinci SA | 679 | 64,814 | ||||||
Vivendi SA | 2,381 | 69,602 | ||||||
|
| |||||||
2,724,661 | ||||||||
Germany 5.6% | ||||||||
adidas AG | 269 | 65,356 | ||||||
Allianz SE | 281 | 62,518 | ||||||
Axel Springer SE | 930 | 53,050 | ||||||
BASF SE | 814 | 62,025 | ||||||
Bayer AG | 811 | 64,831 |
See Notes to Financial Statements.
92 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Germany (cont’d.) | ||||||||
Bayerische Motoren Werke AG | 726 | $ | 61,364 | |||||
Brenntag AG | 1,283 | 63,628 | ||||||
Continental AG | 396 | 64,862 | ||||||
Covestro AG | 1,030 | 58,743 | ||||||
Deutsche Lufthansa AG | 2,436 | 62,205 | ||||||
Deutsche Post AG | 1,862 | 57,862 | ||||||
Deutsche Telekom AG | 3,382 | 55,722 | ||||||
Evonik Industries AG | 2,206 | 62,103 | ||||||
Fresenius Medical Care AG & Co. KGaA | 728 | 57,037 | ||||||
Fresenius SE & Co. KGaA | 1,045 | 58,754 | ||||||
Hannover Rueck SE | 427 | 63,626 | ||||||
HeidelbergCement AG | 893 | 65,658 | ||||||
Henkel AG & Co. KGaA | 575 | 54,023 | ||||||
HOCHTIEF AG | 418 | 66,278 | ||||||
HUGO BOSS AG | 859 | 63,529 | ||||||
LANXESS AG | 1,082 | 58,644 | ||||||
METRO AG | 3,863 | 64,877 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 274 | 64,545 | ||||||
Puma SE | 119 | 67,069 | ||||||
RWE AG | 2,747 | 67,053 | ||||||
Telefonica Deutschland Holding AG | 14,638 | 48,052 | ||||||
Volkswagen AG | 360 | 63,633 | ||||||
Vonovia SE | 1,225 | 59,414 | ||||||
|
| |||||||
1,716,461 | ||||||||
Hong Kong 5.4% | ||||||||
Bank of East Asia Ltd. (The) | 17,520 | 61,043 | ||||||
CK Asset Holdings Ltd. | 7,800 | 64,737 | ||||||
CK Hutchison Holdings Ltd. | 5,400 | 57,476 | ||||||
CK Infrastructure Holdings Ltd. | 7,200 | 60,032 | ||||||
CLP Holdings Ltd. | 4,800 | 56,868 | ||||||
Hang Lung Group Ltd. | 20,400 | 64,061 | ||||||
Henderson Land Development Co. Ltd. | 10,800 | 61,087 | ||||||
HK Electric Investments & HK Electric Investments Ltd. | 61,800 | 64,400 | ||||||
HKT Trust & HKT Ltd. | 40,800 | 63,723 | ||||||
Hong Kong & China Gas Co. Ltd. | 28,800 | 66,701 | ||||||
Hongkong Land Holdings Ltd. | 9,000 | 64,530 | ||||||
Hysan Development Co. Ltd. | 12,000 | 63,365 | ||||||
Kerry Properties Ltd. | 16,800 | 70,198 | ||||||
Link REIT | 6,000 | 67,837 | ||||||
MTR Corp. Ltd. | 11,400 | 65,498 | ||||||
New World Development Co. Ltd. | 43,200 | 69,012 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 93 |
PGIM QMA Strategic Alpha International Equity ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Hong Kong (cont’d.) | ||||||||
NWS Holdings Ltd. | 27,600 | $ | 66,805 | |||||
PCCW Ltd. | 100,800 | 60,610 | ||||||
Power Assets Holdings Ltd. | 8,400 | 58,320 | ||||||
Sino Land Co. Ltd. | 33,600 | 62,579 | ||||||
Sun Hung Kai Properties Ltd. | 3,600 | 59,620 | ||||||
Swire Pacific Ltd. (Class A Stock) | 4,800 | 57,082 | ||||||
Swire Properties Ltd. | 16,800 | 67,416 | ||||||
WH Group Ltd. | 81,000 | 71,922 | ||||||
Wharf Real Estate Investment Co. Ltd. | 9,600 | 67,447 | ||||||
Yue Yuen Industrial Holdings Ltd. | 19,800 | 66,591 | ||||||
|
| |||||||
1,658,960 | ||||||||
Ireland 1.4% | ||||||||
AerCap Holdings NV* | 1,122 | 50,647 | ||||||
AIB Group PLC | 13,508 | 63,548 | ||||||
Bank of Ireland Group PLC | 9,367 | 60,891 | ||||||
CRH PLC | 2,144 | 67,893 | ||||||
DCC PLC | 787 | 68,110 | ||||||
Paddy Power Betfair PLC | 661 | 53,457 | ||||||
Smurfit Kappa Group PLC | 2,197 | 62,325 | ||||||
|
| |||||||
426,871 | ||||||||
Israel 1.4% | ||||||||
Azrieli Group Ltd. | 1,184 | 66,282 | ||||||
Bank Hapoalim BM | 8,670 | 59,683 | ||||||
Bank LeumiLe-Israel BM | 9,053 | 59,872 | ||||||
Bezeq The Israeli Telecommunication Corp. Ltd. | 51,649 | 45,288 | ||||||
Check Point Software Technologies Ltd.* | 530 | 64,819 | ||||||
Mizrahi Tefahot Bank Ltd. | 3,274 | 62,709 | ||||||
Nice Ltd.* | 517 | 60,767 | ||||||
|
| |||||||
419,420 | ||||||||
Italy 1.7% | ||||||||
Assicurazioni Generali SpA | 3,517 | 62,787 | ||||||
Atlantia SpA | 2,892 | 70,330 | ||||||
Enel SpA | 10,931 | 66,146 | ||||||
Eni SpA | 3,676 | 63,413 | ||||||
Prysmian SpA | 3,239 | 66,131 | ||||||
Recordati SpA | 1,843 | 69,325 | ||||||
Telecom Italia SpA* | 91,088 | 55,513 | ||||||
Terna Rete Elettrica Nazionale SpA | 10,603 | 65,946 | ||||||
|
| |||||||
519,591 |
See Notes to Financial Statements.
94 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Japan 33.7% | ||||||||
AGC, Inc. | 1,756 | $ | 60,810 | |||||
Air Water, Inc. | 3,654 | 58,220 | ||||||
Aisin Seiki Co. Ltd. | 1,550 | 60,420 | ||||||
Ajinomoto Co., Inc. | 3,459 | 52,258 | ||||||
Alfresa Holdings Corp. | 2,258 | 65,330 | ||||||
Alps Alpine Co. Ltd. | 2,533 | 49,699 | ||||||
Amada Holdings Co. Ltd. | 5,454 | 57,297 | ||||||
ANA Holdings, Inc. | 1,685 | 62,463 | ||||||
Aozora Bank Ltd. | 1,804 | 51,952 | ||||||
Asahi Group Holdings Ltd. | 1,380 | 59,513 | ||||||
Asahi Kasei Corp. | 5,413 | 58,955 | ||||||
Astellas Pharma, Inc. | 3,816 | 58,833 | ||||||
Bandai Namco Holdings, Inc. | 1,376 | 58,514 | ||||||
Bank of Kyoto Ltd. (The) | 1,228 | 54,919 | ||||||
Bridgestone Corp. | 1,420 | 55,964 | ||||||
Brother Industries Ltd. | 3,558 | 64,958 | ||||||
Central Japan Railway Co. | 241 | 53,999 | ||||||
Chubu Electric Power Co., Inc. | 3,996 | 62,827 | ||||||
Chugai Pharmaceutical Co. Ltd. | 822 | 55,825 | ||||||
Credit Saison Co. Ltd. | 4,651 | 67,429 | ||||||
Dai Nippon Printing Co. Ltd. | 2,537 | 58,677 | ||||||
Daicel Corp. | 5,317 | 55,906 | ||||||
Daikin Industries Ltd. | 545 | 59,113 | ||||||
Daiwa Securities Group, Inc. | 10,754 | 54,559 | ||||||
Denso Corp. | 1,270 | 54,485 | ||||||
Dentsu, Inc. | 1,309 | 54,608 | ||||||
East Japan Railway Co. | 644 | 61,589 | ||||||
Eisai Co. Ltd. | 639 | 52,713 | ||||||
Electric Power Development Co. Ltd. | 2,320 | 57,945 | ||||||
FamilyMart UNY Holdings Co. Ltd. | 1,796 | 51,158 | ||||||
Fuji Electric Co. Ltd. | 1,874 | 58,844 | ||||||
FUJIFILM Holdings Corp. | 1,444 | 64,657 | ||||||
Fujitsu Ltd. | 1,003 | 67,569 | ||||||
Fukuoka Financial Group, Inc. | 2,567 | 55,455 | ||||||
Hakuhodo DY Holdings, Inc. | 3,828 | 58,623 | ||||||
Hikari Tsushin, Inc. | 410 | 73,382 | ||||||
Hino Motors Ltd. | 5,836 | 53,561 | ||||||
Hitachi Construction Machinery Co. Ltd. | 2,190 | 54,600 | ||||||
Hitachi Ltd. | 2,007 | 60,049 | ||||||
Hitachi Metals Ltd. | 5,290 | 53,818 | ||||||
Honda Motor Co. Ltd. | 2,152 | 60,873 | ||||||
Hoya Corp. | 1,013 | 61,844 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 95 |
PGIM QMA Strategic Alpha International Equity ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Japan (cont’d.) | ||||||||
Hulic Co. Ltd. | 6,505 | $ | 59,701 | |||||
Idemitsu Kosan Co. Ltd. | 1,659 | 58,790 | ||||||
IHI Corp. | 1,924 | 50,678 | ||||||
Isetan Mitsukoshi Holdings Ltd. | 5,173 | 51,329 | ||||||
Isuzu Motors Ltd. | 4,172 | 59,718 | ||||||
ITOCHU Corp. | 3,383 | 60,640 | ||||||
Japan Airlines Co. Ltd. | 1,671 | 60,939 | ||||||
Japan Post Holdings Co. Ltd. | 4,859 | 59,067 | ||||||
Japan Prime Realty Investment Corp. | 16 | 62,728 | ||||||
Japan Retail Fund Investment Corp. | 31 | 62,409 | ||||||
Japan Tobacco, Inc. | 2,387 | 60,668 | ||||||
JFE Holdings, Inc. | 3,403 | 59,274 | ||||||
JTEKT Corp. | 4,685 | 58,003 | ||||||
JXTG Holdings, Inc. | 9,774 | 45,658 | ||||||
Kajima Corp. | 4,271 | 63,146 | ||||||
Kamigumi Co. Ltd. | 2,601 | 60,227 | ||||||
Kansai Electric Power Co., Inc. (The) | 3,992 | 59,648 | ||||||
Keihan Holdings Co. Ltd. | 1,384 | 57,240 | ||||||
Keio Corp. | 1,094 | 64,188 | ||||||
Kintetsu Group Holdings Co. Ltd. | 1,386 | 62,545 | ||||||
Kirin Holdings Co. Ltd. | 2,505 | 55,936 | ||||||
Kobe Steel Ltd. | 7,206 | 56,955 | ||||||
Komatsu Ltd. | 2,250 | 55,127 | ||||||
Konami Holdings Corp. | 1,305 | 53,797 | ||||||
Konica Minolta, Inc. | 6,589 | 63,842 | ||||||
Kubota Corp. | 3,496 | 47,125 | ||||||
Kuraray Co. Ltd. | 3,780 | 50,665 | ||||||
Kurita Water Industries Ltd. | 2,243 | 56,425 | ||||||
Kyocera Corp. | 1,116 | 61,484 | ||||||
Kyowa Hakko Kirin Co. Ltd. | 2,911 | 55,522 | ||||||
Kyushu Electric Power Co., Inc. | 5,009 | 59,498 | ||||||
Kyushu Railway Co. | 1,796 | 61,389 | ||||||
Lawson, Inc. | 955 | 57,832 | ||||||
Lion Corp. | 3,006 | 61,568 | ||||||
Makita Corp. | 1,560 | 55,212 | ||||||
Marubeni Corp. | 7,919 | 56,459 | ||||||
Mazda Motor Corp. | 5,536 | 64,938 | ||||||
McDonald’s Holdings Co. Japan Ltd. | 1,303 | 58,332 | ||||||
Mebuki Financial Group, Inc. | 19,655 | 53,076 | ||||||
Medipal Holdings Corp. | 2,558 | 59,575 | ||||||
MEIJI Holdings Co. Ltd. | 729 | 57,684 | ||||||
MINEBEA MITSUMI, Inc. | 3,646 | 58,420 |
See Notes to Financial Statements.
96 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Japan (cont’d.) | ||||||||
Mitsubishi Chemical Holdings Corp. | 7,241 | $ | 53,392 | |||||
Mitsubishi Corp. | 2,232 | 62,856 | ||||||
Mitsubishi Estate Co. Ltd. | 3,681 | 63,175 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 3,610 | 55,122 | ||||||
Mitsubishi Heavy Industries Ltd. | 1,600 | 65,039 | ||||||
Mitsubishi Materials Corp. | 2,162 | 59,352 | ||||||
Mitsubishi Motors Corp. | 9,660 | 54,165 | ||||||
Mitsubishi Tanabe Pharma Corp. | 3,819 | 55,025 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 10,783 | 55,789 | ||||||
Mitsubishi UFJ Lease & Finance Co. Ltd. | 10,863 | 55,258 | ||||||
Mitsui & Co. Ltd. | 3,762 | 59,063 | ||||||
Mitsui Chemicals, Inc. | 2,348 | 57,149 | ||||||
Mitsui Fudosan Co. Ltd. | 2,467 | 58,375 | ||||||
Mizuho Financial Group, Inc. | 35,791 | 56,256 | ||||||
Nagoya Railroad Co. Ltd. | 2,372 | 65,224 | ||||||
NGK Spark Plug Co. Ltd. | 2,906 | 61,684 | ||||||
Nikon Corp. | 3,752 | 56,752 | ||||||
Nippon Building Fund, Inc. | 10 | 65,043 | ||||||
Nippon Electric Glass Co. Ltd. | 2,240 | 60,489 | ||||||
Nippon Express Co. Ltd. | 1,021 | 60,180 | ||||||
Nippon Prologis REIT, Inc. | 29 | 61,609 | ||||||
Nippon Steel & Sumitomo Metal Corp. | 3,203 | 57,572 | ||||||
Nippon Telegraph & Telephone Corp. | 1,399 | 60,257 | ||||||
Nissan Chemical Corp. | 1,111 | 56,016 | ||||||
Nissin Foods Holdings Co. Ltd. | 966 | 66,991 | ||||||
Nitori Holdings Co. Ltd. | 469 | 58,423 | ||||||
Nitto Denko Corp. | 1,105 | 58,906 | ||||||
Nomura Real Estate Holdings, Inc. | 3,003 | 56,819 | ||||||
Nomura Research Institute Ltd. | 1,326 | 53,889 | ||||||
NSK Ltd. | 6,358 | 58,352 | ||||||
NTT DOCOMO, Inc. | 2,535 | 58,937 | ||||||
Obayashi Corp. | 5,956 | 57,976 | ||||||
Oji Holdings Corp. | 10,149 | 60,276 | ||||||
Ono Pharmaceutical Co. Ltd. | 2,444 | 50,178 | ||||||
Oracle Corp. Japan | 962 | 71,720 | ||||||
ORIX Corp. | 3,650 | 52,786 | ||||||
Persol Holdings Co. Ltd. | 3,139 | 53,732 | ||||||
Pola Orbis Holdings, Inc. | 2,151 | 60,305 | ||||||
Renesas Electronics Corp.* | 12,586 | 73,620 | ||||||
Resona Holdings, Inc. | 11,220 | 50,662 | ||||||
Ricoh Co. Ltd. | 6,091 | 61,749 | ||||||
Ryohin Keikaku Co. Ltd. | 184 | 43,613 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 97 |
PGIM QMA Strategic Alpha International Equity ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Japan (cont’d.) | ||||||||
Santen Pharmaceutical Co. Ltd. | 3,488 | $ | 54,292 | |||||
Secom Co. Ltd. | 684 | 59,033 | ||||||
Sega Sammy Holdings, Inc. | 4,202 | 48,857 | ||||||
Seiko Epson Corp. | 3,710 | 54,785 | ||||||
Sekisui Chemical Co. Ltd. | 3,646 | 57,144 | ||||||
Seven & i Holdings Co. Ltd. | 1,335 | 58,615 | ||||||
SG Holdings Co. Ltd. | 2,419 | 70,748 | ||||||
Shimano, Inc. | 439 | 66,599 | ||||||
Shimizu Corp. | 6,983 | 61,269 | ||||||
Shinsei Bank Ltd. | 4,301 | 58,998 | ||||||
Shionogi & Co. Ltd. | 848 | 54,137 | ||||||
Shizuoka Bank Ltd. (The) | 6,605 | 52,086 | ||||||
Showa Denko KK | 1,433 | 53,288 | ||||||
Showa Shell Sekiyu KK | 3,790 | 56,783 | ||||||
Stanley Electric Co. Ltd. | 1,998 | 57,360 | ||||||
Subaru Corp. | 2,624 | 66,539 | ||||||
Sumitomo Chemical Co. Ltd. | 10,907 | 54,014 | ||||||
Sumitomo Corp. | 3,818 | 54,822 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 1,817 | 44,779 | ||||||
Sumitomo Heavy Industries Ltd. | 1,790 | 61,184 | ||||||
Sumitomo Metal Mining Co. Ltd. | 1,998 | 58,507 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 1,642 | 58,070 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 1,433 | 54,240 | ||||||
Sumitomo Realty & Development Co. Ltd. | 1,634 | 61,041 | ||||||
Sundrug Co. Ltd. | 1,765 | 53,996 | ||||||
Suzuken Co. Ltd. | 1,119 | 61,238 | ||||||
Suzuki Motor Corp. | 1,192 | 60,966 | ||||||
Taiheiyo Cement Corp. | 1,761 | 60,114 | ||||||
Taisei Corp. | 1,325 | 62,526 | ||||||
Taiyo Nippon Sanso Corp. | 3,534 | 49,872 | ||||||
Takashimaya Co. Ltd. | 4,100 | 53,887 | ||||||
Takeda Pharmaceutical Co. Ltd. | 2,475 | 99,231 | ||||||
Teijin Ltd. | 3,462 | 57,987 | ||||||
Terumo Corp. | 1,040 | 63,633 | ||||||
Toho Co. Ltd. | 1,721 | 61,451 | ||||||
Toho Gas Co. Ltd. | 1,423 | 64,598 | ||||||
Tohoku Electric Power Co., Inc. | 4,580 | 59,990 | ||||||
Tokyo Electric Power Co. Holdings, Inc.* | 9,742 | 60,655 | ||||||
Tokyo Electron Ltd. | 454 | 61,706 | ||||||
Tokyo Gas Co. Ltd. | 2,319 | 63,767 | ||||||
Toray Industries, Inc. | 7,601 | 52,883 | ||||||
Toshiba Corp. | 1,894 | 59,302 |
See Notes to Financial Statements.
98 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Japan (cont’d.) | ||||||||
Tosoh Corp. | 4,206 | $ | 61,997 | |||||
Toyota Industries Corp. | 1,164 | 59,628 | ||||||
Toyota Motor Corp. | 1,025 | 61,584 | ||||||
Toyota Tsusho Corp. | 1,731 | 54,897 | ||||||
United Urban Investment Corp. | 38 | 58,842 | ||||||
Welcia Holdings Co. Ltd. | 1,176 | 41,674 | ||||||
Yamaha Corp. | 1,348 | 66,272 | ||||||
Yamaha Motor Co. Ltd. | 2,903 | 58,781 | ||||||
Yokogawa Electric Corp. | 3,190 | 61,359 | ||||||
Yokohama Rubber Co. Ltd. (The) | 2,861 | 58,290 | ||||||
|
| |||||||
10,423,762 | ||||||||
Luxembourg 0.7% | ||||||||
Aroundtown SA | 6,931 | 58,339 | ||||||
Millicom International Cellular SA | 1,007 | 60,621 | ||||||
RTL Group SA | 991 | 55,887 | ||||||
SES SA (Class A Stock) | 2,735 | 54,954 | ||||||
|
| |||||||
229,801 | ||||||||
Netherlands 3.2% | ||||||||
ABN AMRO Group NV | 2,326 | 56,406 | ||||||
Aegon NV | 10,649 | 57,269 | ||||||
Akzo Nobel NV | 628 | 56,953 | ||||||
EXOR NV | 1,009 | 62,090 | ||||||
Heineken Holding NV | 672 | 65,009 | ||||||
Heineken NV | 648 | 65,304 | ||||||
ING Groep NV | 4,901 | 64,844 | ||||||
Koninklijke Ahold Delhaize NV | 2,306 | 59,476 | ||||||
Koninklijke KPN NV | 20,038 | 61,812 | ||||||
Koninklijke Vopak NV | 1,357 | 66,356 | ||||||
NN Group NV | 1,394 | 60,729 | ||||||
QIAGEN NV* | 1,687 | 64,513 | ||||||
Randstad NV | 1,219 | 65,099 | ||||||
Royal Dutch Shell PLC, | ||||||||
(Class A Stock) | 1,961 | 61,110 | ||||||
(Class B Stock) | 1,940 | 60,841 | ||||||
Wolters Kluwer NV | 983 | 64,828 | ||||||
|
| |||||||
992,639 | ||||||||
New Zealand 0.6% | ||||||||
Auckland International Airport Ltd. | 11,987 | 63,428 | ||||||
Fisher & Paykel Healthcare Corp. Ltd. | 6,490 | 64,969 | ||||||
Spark New Zealand Ltd. | 20,404 | 51,829 | ||||||
|
| |||||||
180,226 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 99 |
PGIM QMA Strategic Alpha International Equity ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Norway 1.3% | ||||||||
DNB ASA | 3,458 | $ | 66,277 | |||||
Equinor ASA | 2,544 | 57,188 | ||||||
Mowi ASA | 2,537 | 58,528 | ||||||
Norsk Hydro ASA | 12,594 | 52,162 | ||||||
Orkla ASA | 7,184 | 56,605 | ||||||
Telenor ASA | 3,065 | 59,766 | ||||||
Yara International ASA | 1,477 | 62,158 | ||||||
|
| |||||||
412,684 | ||||||||
Portugal 0.6% | ||||||||
EDP - Energias de Portugal SA | 16,961 | 62,218 | ||||||
Galp Energia SGPS SA | 3,607 | 59,203 | ||||||
Jeronimo Martins SGPS SA | 4,968 | 74,874 | ||||||
|
| |||||||
196,295 | ||||||||
Singapore 2.8% | ||||||||
CapitaLand Commercial Trust | 46,700 | 67,010 | ||||||
CapitaLand Ltd. | 26,000 | 65,769 | ||||||
CapitaLand Mall Trust | 36,100 | 64,083 | ||||||
City Developments Ltd. | 9,600 | 63,337 | ||||||
ComfortDelGro Corp. Ltd. | 38,600 | 68,235 | ||||||
DBS Group Holdings Ltd. | 3,200 | 58,793 | ||||||
Keppel Corp. Ltd. | 13,300 | 60,598 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 7,200 | 58,899 | ||||||
SATS Ltd. | 16,900 | 64,125 | ||||||
Singapore Airlines Ltd. | 8,500 | 62,933 | ||||||
Singapore Exchange Ltd. | 11,000 | 63,787 | ||||||
Singapore Technologies Engineering Ltd. | 22,800 | 63,071 | ||||||
United Overseas Bank Ltd. | 3,100 | 57,368 | ||||||
Wilmar International Ltd. | 26,600 | 62,959 | ||||||
|
| |||||||
880,967 | ||||||||
Spain 2.2% | ||||||||
Aena SME SA | 374 | 66,746 | ||||||
Amadeus IT Group SA | 828 | 62,348 | ||||||
Banco de Sabadell SA | 46,458 | 52,923 | ||||||
Banco Santander SA | 12,511 | 61,135 | ||||||
Enagas SA | 2,158 | 61,488 | ||||||
Endesa SA | 2,662 | 67,068 | ||||||
Iberdrola SA | 7,945 | 66,441 | ||||||
Industria de Diseno Textil SA | 1,933 | 58,353 |
See Notes to Financial Statements.
100 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Spain (cont’d.) | ||||||||
Red Electrica Corp. SA | 2,754 | $ | 59,518 | |||||
Repsol SA | 3,434 | 59,078 | ||||||
Telefonica SA | 6,605 | 57,015 | ||||||
|
| |||||||
672,113 | ||||||||
Sweden 4.1% | ||||||||
Alfa Laval AB | 2,756 | 60,276 | ||||||
Assa Abloy AB (Class B Stock) | 3,190 | 65,986 | ||||||
Atlas Copco AB, | ||||||||
(Class A Stock) | 2,418 | 65,516 | ||||||
(Class B Stock) | 2,623 | 65,831 | ||||||
Boliden AB | 2,647 | 72,437 | ||||||
Epiroc AB (Class B Stock)* | 7,375 | 69,294 | ||||||
Husqvarna AB (Class B Stock) | 7,528 | 61,701 | ||||||
ICA Gruppen AB | 1,634 | 62,805 | ||||||
Industrivarden AB (Class C Stock) | 2,891 | 60,208 | ||||||
Investor AB (Class B Stock) | 1,354 | 60,473 | ||||||
Kinnevik AB (Class B Stock) | 2,338 | 59,235 | ||||||
L E Lundbergforetagen AB (Class B Stock) | 1,984 | 61,178 | ||||||
Sandvik AB | 3,997 | 65,672 | ||||||
Securitas AB (Class B Stock) | 3,520 | 55,205 | ||||||
SKF AB (Class B Stock) | 3,755 | 63,200 | ||||||
Svenska Handelsbanken AB (Class A Stock) | 5,382 | 61,390 | ||||||
Swedish Match AB | 1,519 | 71,213 | ||||||
Telefonaktiebolaget LM Ericsson (Class B Stock) | 7,108 | 65,062 | ||||||
Telia Co. AB | 12,850 | 55,777 | ||||||
Volvo AB (Class B Stock) | 4,262 | 62,758 | ||||||
|
| |||||||
1,265,217 | ||||||||
Switzerland 3.9% | ||||||||
Adecco Group AG | 1,200 | 62,354 | ||||||
Baloise Holding AG | 404 | 65,981 | ||||||
Coca-Cola HBC AG* | 1,991 | 66,970 | ||||||
Ferguson PLC | 926 | 64,124 | ||||||
Givaudan SA | 25 | 62,547 | ||||||
Nestle SA | 696 | 63,013 | ||||||
Novartis AG | 652 | 59,474 | ||||||
Partners Group Holding AG | 91 | 65,830 | ||||||
Roche Holding AG | 229 | 63,626 | ||||||
SGS SA | 25 | 63,749 | ||||||
Sonova Holding AG | 367 | 68,634 | ||||||
STMicroelectronics NV | 4,050 | 66,198 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 101 |
PGIM QMA Strategic Alpha International Equity ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Switzerland (cont’d.) | ||||||||
Straumann Holding AG | 97 | $ | 75,711 | |||||
Swatch Group AG (The) | 1,214 | 117,228 | ||||||
Swiss Life Holding AG* | 151 | 65,813 | ||||||
Swiss Re AG | 649 | 64,260 | ||||||
Swisscom AG | 125 | 57,875 | ||||||
Zurich Insurance Group AG | 190 | 62,823 | ||||||
|
| |||||||
1,216,210 | ||||||||
United Kingdom 8.7% | ||||||||
3i Group PLC | 5,574 | 69,924 | ||||||
Associated British Foods PLC | 1,918 | 57,061 | ||||||
Auto Trader Group PLC | 10,598 | 66,868 | ||||||
Aviva PLC | 11,417 | 64,085 | ||||||
Barclays PLC | 28,526 | 62,111 | ||||||
BP PLC | 8,935 | 63,331 | ||||||
British Land Co. PLC (The) | 8,230 | 65,954 | ||||||
Centrica PLC | 33,730 | 55,699 | ||||||
CNH Industrial NV | 6,089 | 65,963 | ||||||
Coca-Cola European Partners PLC | 1,222 | 57,605 | ||||||
Croda International PLC | 954 | 60,875 | ||||||
Diageo PLC | 1,646 | 63,607 | ||||||
Direct Line Insurance Group PLC | 14,166 | 67,021 | ||||||
easyJet PLC | 4,177 | 68,005 | ||||||
Fiat Chrysler Automobiles NV* | 3,594 | 53,070 | ||||||
GlaxoSmithKline PLC | 2,866 | 56,921 | ||||||
Hammerson PLC | 12,037 | 60,939 | ||||||
Informa PLC | 6,722 | 62,874 | ||||||
InterContinental Hotels Group PLC | 1,050 | 62,802 | ||||||
International Consolidated Airlines Group SA | 7,417 | 58,684 | ||||||
Intertek Group PLC | 990 | 66,784 | ||||||
J Sainsbury PLC | 15,234 | 46,271 | ||||||
Land Securities Group PLC | 5,714 | 68,179 | ||||||
Lloyds Banking Group PLC | 83,928 | 70,731 | ||||||
Meggitt PLC | 8,966 | 64,122 | ||||||
Mondi PLC | 2,718 | 62,313 | ||||||
National Grid PLC | 5,579 | 62,742 | ||||||
Next PLC | 949 | 64,043 | ||||||
Pearson PLC | 4,823 | 54,118 | ||||||
Reckitt Benckiser Group PLC | 714 | 54,614 | ||||||
RELX PLC | 2,846 | 65,266 | ||||||
Rio Tinto Ltd. | 1,109 | 75,646 | ||||||
Rio Tinto PLC | 1,306 | 75,109 | ||||||
Royal Mail PLC | 14,530 | 54,501 | ||||||
Smith & Nephew PLC | 3,262 | 62,151 | ||||||
Smiths Group PLC | 3,344 | 63,447 |
See Notes to Financial Statements.
102 |
Description | Shares | Value | ||||||||||||||
COMMON STOCKS (Continued) | ||||||||||||||||
United Kingdom (cont’d.) | ||||||||||||||||
Taylor Wimpey PLC | 34,674 | $ | 83,426 | |||||||||||||
Tesco PLC | 23,520 | 70,502 | ||||||||||||||
Unilever NV | 1,069 | 57,836 | ||||||||||||||
Unilever PLC | 1,096 | 58,263 | ||||||||||||||
United Utilities Group PLC | 6,110 | 68,090 | ||||||||||||||
Vodafone Group PLC | 27,503 | 48,983 | ||||||||||||||
Wm Morrison Supermarkets PLC | 19,555 | 59,680 | ||||||||||||||
|
| |||||||||||||||
2,700,216 | ||||||||||||||||
United States 0.2% | ||||||||||||||||
Carnival PLC | 1,021 | 57,093 | ||||||||||||||
|
| |||||||||||||||
TOTAL COMMON STOCKS | 30,106,533 | |||||||||||||||
|
| |||||||||||||||
PREFERRED STOCKS 1.0% | ||||||||||||||||
Germany 0.8% | ||||||||||||||||
Bayerische Motoren Werke AG | 817 | 60,311 | ||||||||||||||
Henkel AG & Co. KGaA | 515 | 51,456 | ||||||||||||||
Porsche Automobil Holding SE | 928 | 61,877 | ||||||||||||||
Volkswagen AG | 353 | 60,589 | ||||||||||||||
|
| |||||||||||||||
234,233 | ||||||||||||||||
Italy 0.2% | ||||||||||||||||
Telecom Italia SpA | 105,326 | 57,397 | ||||||||||||||
|
| |||||||||||||||
TOTAL PREFERRED STOCKS | 291,630 | |||||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS | 30,398,163 | |||||||||||||||
|
| |||||||||||||||
Interest Rate | Maturity Date | Principal Amount (000)# | ||||||||||||||
SHORT-TERM INVESTMENT 1.4% |
| |||||||||||||||
TIME DEPOSIT |
| |||||||||||||||
JPMorgan Chase | 1.750 | % | 03/01/19 | 448 | 448,146 | |||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 99.8% |
| 30,846,309 | ||||||||||||||
Other assets in excess of liabilities 0.2% |
| 68,209 | ||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% |
| $ | 30,914,518 | |||||||||||||
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 103 |
PGIM QMA Strategic Alpha International Equity ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2019
The following abbreviations are used in the semi-annual report:
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
* | Non-income producing security. |
Fair Value Measurements:
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of February 28, 2019 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Common Stocks | ||||||||||||
Australia | $ | 1,844,225 | $ | — | $ | — | ||||||
Austria | 235,347 | — | — | |||||||||
Belgium | 247,342 | — | — | |||||||||
China | 69,279 | — | — | |||||||||
Denmark | 499,879 | — | — | |||||||||
Finland | 517,274 | — | — | |||||||||
France | 2,724,661 | — | — | |||||||||
Germany | 1,716,461 | — | — | |||||||||
Hong Kong | 1,658,960 | — | — | |||||||||
Ireland | 426,871 | — | — | |||||||||
Israel | 419,420 | — | — | |||||||||
Italy | 519,591 | — | — | |||||||||
Japan | 10,423,762 | — | — | |||||||||
Luxembourg | 229,801 | — | — | |||||||||
Netherlands | 992,639 | — | — | |||||||||
New Zealand | 180,226 | — | — | |||||||||
Norway | 412,684 | — | — | |||||||||
Portugal | 196,295 | — | — | |||||||||
Singapore | 880,967 | — | — | |||||||||
Spain | 672,113 | — | — | |||||||||
Sweden | 1,265,217 | — | — |
See Notes to Financial Statements.
104 |
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Switzerland | $ | 1,216,210 | $ | — | $ | — | ||||||
United Kingdom | 2,700,216 | — | — | |||||||||
United States | 57,093 | — | — | |||||||||
Preferred Stocks | — | — | ||||||||||
Germany | 234,233 | — | — | |||||||||
Italy | 57,397 | — | — | |||||||||
Time Deposit | — | 448,146 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 30,398,163 | $ | 448,146 | $ | — | ||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of February 28, 2019 were as follows (unaudited):
Banks | 6.6 | % | ||
Machinery | 5.1 | |||
Chemicals | 5.1 | |||
Real Estate Management & Development | 4.5 | |||
Equity Real Estate Investment Trusts (REITs) | 4.1 | |||
Pharmaceuticals | 4.1 | |||
Electric Utilities | 3.6 | |||
Oil, Gas & Consumable Fuels | 3.4 | |||
Metals & Mining | 3.4 | |||
Food & Staples Retailing | 3.3 | |||
Insurance | 3.3 | |||
Automobiles | 3.0 | |||
Diversified Telecommunication Services | 2.8 | |||
Road & Rail | 2.0 | |||
Food Products | 2.0 | |||
Auto Components | 2.0 | |||
Trading Companies & Distributors | 1.9 | |||
Health Care Equipment & Supplies | 1.9 | |||
Textiles, Apparel & Luxury Goods | 1.9 | |||
Beverages | 1.8 | |||
Hotels, Restaurants & Leisure | 1.7 | |||
Construction & Engineering | 1.6 | |||
Professional Services | 1.6 | |||
Diversified Financial Services | 1.5 | |||
Transportation Infrastructure | 1.5 | |||
Media | 1.5 | |||
Industrial Conglomerates | 1.4 | |||
Time Deposit | 1.4 | |||
Airlines | 1.2 | |||
Multi-Utilities | 1.2 | |||
Health Care Providers & Services | 1.2 | |||
Capital Markets | 1.0 | |||
Technology Hardware, Storage & Peripherals | 1.0 | |||
Electronic Equipment, Instruments & Components | 0.9 | |||
Multiline Retail | 0.9 | % | ||
Household Durables | 0.8 | |||
Electrical Equipment | 0.8 | |||
IT Services | 0.8 | |||
Building Products | 0.8 | |||
Leisure Products | 0.8 | |||
Personal Products | 0.8 | |||
Commercial Services & Supplies | 0.7 | |||
Household Products | 0.7 | |||
Semiconductors & Semiconductor Equipment | 0.7 | |||
Software | 0.6 | |||
Gas Utilities | 0.6 | |||
Construction Materials | 0.6 | |||
Specialty Retail | 0.6 | |||
Aerospace & Defense | 0.6 | |||
Paper & Forest Products | 0.6 | |||
Entertainment | 0.6 | |||
Air Freight & Logistics | 0.6 | |||
Wireless Telecommunication Services | 0.5 | |||
Tobacco | 0.4 | |||
Interactive Media & Services | 0.4 | |||
Water Utilities | 0.2 | |||
Consumer Finance | 0.2 | |||
Communications Equipment | 0.2 | |||
Life Sciences Tools & Services | 0.2 | |||
Containers & Packaging | 0.2 | |||
Marine | 0.2 | |||
Independent Power and Renewable Electricity Producers | 0.2 | |||
|
| |||
99.8 | ||||
Other assets in excess of liabilities | 0.2 | |||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 105 |
PGIM QMA Strategic Alpha International Equity ETF
Statement of Assets & Liabilities(unaudited)
as of February 28, 2019
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $29,958,712) | $ | 30,846,309 | ||
Cash | 600 | |||
Foreign currency, at value (cost $21,526) | 21,535 | |||
Dividends receivable | 52,875 | |||
|
| |||
Total assets | 30,921,319 | |||
|
| |||
Liabilities | ||||
Management fee payable | 6,801 | |||
|
| |||
Total Liabilities | 6,801 | |||
|
| |||
Net Assets | $ | 30,914,518 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 600 | ||
Paid-in capital in excess of par | 29,968,450 | |||
|
| |||
29,969,050 | ||||
Total distributable earnings (loss) | 945,468 | |||
|
| |||
Net assets, February 28, 2019 | $ | 30,914,518 | ||
|
| |||
Net asset value, offering price and redemption price per share, ($ 30,914,518 / 600,000 shares of common stock issued and outstanding) | $ | 51.52 | ||
|
|
See Notes to Financial Statements.
106 |
PGIM QMA Strategic Alpha International Equity ETF
Statement of Operations(unaudited)
Period Ended February 28, 2019*
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 4,372 | ||
Unaffiliated dividend income (net of $9,200 foreign withholding tax) | 104,653 | |||
|
| |||
Total income | 109,025 | |||
|
| |||
Expenses | ||||
Management fee | 19,629 | |||
|
| |||
Total expenses | 19,629 | |||
|
| |||
Net investment income (loss) | 89,396 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions | 4,817 | |||
Foreign currency transactions | 3,191 | |||
|
| |||
8,008 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 887,597 | |||
Foreign currencies | (281 | ) | ||
|
| |||
887,316 | ||||
|
| |||
Net gain (loss) on investment transactions | 895,324 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 984,720 | ||
|
|
* | For the period from December 4, 2018 (commencement of operations) through February 28, 2019. |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 107 |
PGIM QMA Strategic Alpha International Equity ETF
Statement of Changes in Net Assets(unaudited)
Period Ended February 28, 2019* | ||||
Increase (Decrease) in Net Assets | ||||
Operations | ||||
Net investment income (loss) | $ | 89,396 | ||
Net realized gain (loss) on investments and foreign currency transactions | 8,008 | |||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 887,316 | |||
|
| |||
Net increase (decrease) in net assets resulting from operations | 984,720 | |||
|
| |||
Dividends and Distributions | ||||
Distributions from distributable earnings | (39,252 | ) | ||
|
| |||
Fund share transactions (Net of share conversions) | ||||
Net proceeds from shares sold | 29,969,050 | |||
|
| |||
Net increase (decrease) in net assets from Fund share transactions | 29,969,050 | |||
|
| |||
Total increase (decrease) | 30,914,518 | |||
Net Assets: | ||||
Beginning of period | — | |||
|
| |||
End of period | $ | 30,914,518 | ||
|
|
* | For the period from December 4, 2018 (commencement of operations) through February 28, 2019. |
See Notes to Financial Statements.
108 |
Notes to Financial Statements(unaudited)
PGIM ETF Trust (the “Trust”) is a diversified,open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and operated as an exchange-traded fund. The Trust was organized as a Delaware statutory trust on October 23, 2017 and consists of six separate series (each, a “Fund” and collectively, the “Funds”): PGIM Ultra Short Bond ETF, PGIM Active High Yield Bond ETF, PGIM QMA Strategic AlphaLarge-Cap Core ETF, PGIM QMA Strategic AlphaSmall-Cap Growth ETF, PGIM QMA Strategic AlphaSmall-Cap Value ETF and PGIM QMA Strategic Alpha International Equity ETF.
These financial statements relate only to the following Funds: PGIM QMA Strategic Alpha Large- Cap Core ETF, PGIM QMA Strategic AlphaSmall-Cap Growth ETF, PGIM QMA Strategic AlphaSmall-Cap Value ETF and PGIM QMA Strategic Alpha International Equity ETF, which commenced investment operations on October 17, 2018, November 13, 2018, November 13, 2018 and December 4, 2018, respectively.
The investment objective of each Fund is to seek long-term growth of capital.
1. Accounting Policies
The Funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services—Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Funds consistently follow such policies in the preparation of its financial statements.
Securities Valuation:The Funds hold securities and other assets and liabilities that are fair valued at the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Trust’s Board of Trustees (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly scheduled quarterly meeting.
PGIM QMA Strategic Alpha ETFs | 109 |
Notes to Financial Statements(unaudited) (continued)
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Funds’ foreign investments may change on days when investors cannot purchase or redeem Funds shares.
Various inputs determine how the Funds’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with the FASB ASC Topic 820—Fair Value Measurements and Disclosures.
Common and preferred stocks, exchange-traded funds, and derivative instruments, such as futures or options, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Investments inopen-end,non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the Manager regarding the issuer or the markets or industry in which it operates.
110 |
Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other unaffiliated mutual funds to calculate their net asset values.
Illiquid Securities:Pursuant to Rule22e-4 under the Investment Company Act of 1940, the Fund has adopted a Board approved Liquidity Risk Management Program (“LRMP”) that requires, among other things, that the Fund limit its illiquid investments that are assets to no more than 15% of net assets. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, may not reasonably be expected to be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur transaction costs that would not be incurred in the sale of securities that were freely marketable.
Restricted Securities:Securities acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer are considered restricted as to disposition under federal securities law (‘restricted securities”). Such restricted securities are valued pursuant to the valuation procedures noted above. Restricted securities that would otherwise be considered illiquid investments pursuant to the Fund’s LRMP because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. Therefore, these Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act of 1933, may be classified higher than “Illiquid” under the LRMP (i.e. “moderately liquid” or “less liquid” investments). However, the liquidity of the Fund’s investments in restricted securities could be impaired if trading does not develop or declines.
Foreign Currency Translation:The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities—at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Funds are presented at the foreign exchange rates and market values at the close of the period, the Funds do not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Funds do not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions. Net realized gains (losses) on foreign currency transactions (where
PGIM QMA Strategic Alpha ETFs | 111 |
Notes to Financial Statements(unaudited) (continued)
applicable) represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on foreign currencies (where applicable).
Securities Transactions and Net Investment Income:Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on theex-date, or for certain foreign securities, when a Fund becomes aware of such dividends. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual.
Taxes:It is the Funds’ policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions:The Funds expect to pay dividends from net investment income quarterly. Distributions of net realized capital and currency gains, if any, are declared and paid at least annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on theex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified amongst total distributable earnings (loss) andpaid-in capital in excess of par, as appropriate.
Estimates:The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
2. Agreements
Pursuant to a management agreement with the Trust on behalf of the Funds (the Management Agreement), PGIM Investments LLC (“PGIM Investments”), subject to the
112 |
supervision of the Board and in conformity with the stated policies of the Funds, manages both the investment operations of each Fund and the composition of each Fund’s portfolio, including the purchase, retention and disposition of assets. In connection therewith, the Manager is obligated to keep certain books and records of the Funds. The Manager is authorized to enter into subadvisory agreements for investment advisory services in connection with the management of the Funds. The Manager will continue to have responsibility for all investment advisory services performed pursuant to any such subadvisory agreements. PGIM Investments will review the performance of the investment subadviser(s) and make recommendations to the Board with respect to the retention of investment subadvisers and the renewal of contracts. The Manager also administers the Funds’ business affairs and, in connection therewith, furnishes the Funds’ with office facilities, together with those ordinary clerical and bookkeeping services which are not being furnished by the Funds’ custodian (the Custodian). The management services of PGIM Investments to the Funds are not exclusive under the terms of the Management Agreement and PGIM Investments is free to, and does, render management services to others.
The Board of Trustees of the Trust has approved a unitary management fee structure for the Funds. Under the unitary fee structure, the Manager is responsible for paying substantially all the expenses of the Funds, costs of borrowing money (including interest expenses and any loan commitment or other associated fees), taxes, acquired fund fees and expenses, brokerage fees, costs of holding shareholder meetings, litigation, indemnification and extraordinary expenses.
The unitary fee paid to the Manager is accrued daily and payable monthly, at an annual rate of the Fund’s average daily net assets specified below.
Fund | Unitary fee rate | |||
PGIM QMA Strategic AlphaLarge-Cap Core ETF | 0.17 | % | ||
PGIM QMA Strategic AlphaSmall-Cap Growth ETF | 0.29 | % | ||
PGIM QMA Strategic AlphaSmall-Cap Value ETF | 0.29 | % | ||
PGIM QMA Strategic Alpha International Equity ETF | 0.29 | % |
The Manager has entered into a subadvisory agreement (Subadvisory Agreement) with QMA LLC, (“QMA”) (formerly known as Quantitative Management Associates LLC) each Fund’s investment subadviser (the “subadviser”). The Subadvisory Agreement provides that the subadviser will furnish investment advisory services in connection with the management of the Funds. In connection therewith, the subadviser is obligated to keep certain books and records of each Fund. Under the Subadvisory Agreement, the subadviser, subject to the supervision of PGIM Investments, is responsible for managing the assets of the Funds in accordance with the Funds’ investment objectives, policies and restrictions. The subadviser determines what securities and other instruments are purchased and sold for the Funds and is responsible for obtaining and evaluating financial data relevant to the Funds. PGIM Investments continues to have responsibility for all investment advisory services pursuant to the Management Agreement and supervises the subadviser’s performance of such services.
PGIM QMA Strategic Alpha ETFs | 113 |
Notes to Financial Statements(unaudited) (continued)
Brown Brothers Harriman & Co. (“BBH”) serves as the Custodian, Transfer Agent and Administrative Agent for the Trust. Pursuant to a Custodian Agreement, BBH maintains certain financial accounting books and records pursuant to an agreement with the Trust. Subcustodians provide custodial services for anynon-US assets held outside the United States. Pursuant to an Administrative and Transfer Agency Agreement, BBH maintains certain books and records and provides transfer agency, administrative, legal, tax support and accounting and financial reporting services for the maintenance and operations of the Trust. As the transfer and dividend disbursing agent of the Trust, BBH provides customary transfer agency services to the Trust, including the handling of shareholder communications, the processing of shareholder transactions, the maintenance of shareholder account records, the payment of dividends and distributions, and related functions. For these services, BBH receives compensation from the Manager and is reimbursed for expenses, including custodian and administration fees and certainout-of-pocket expenses including, but not limited to, postage, stationery, printing, allocable communication expenses and other costs. The Manager is responsible for compensating BBH under the Custodian and Administrative and Transfer Agency Agreements.
3. Other Transactions with Affiliates
The Funds may enter into certain securities purchase or sale transactions under Board approved Rule17a-7 procedures. Rule17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Pursuant to the Rule17a-7 procedures and consistent with guidance issued by the SEC, the Funds’ Chief Compliance Officer (“CCO”) prepares a quarterly summary of all such transactions for submission to the Board, together with the CCO’s written representation that all such17a-7 transactions were effected in accordance with the Funds’ Rule17a-7 procedures. Any17a-7 transactions for the reporting period are disclosed in the “Portfolio Securities” note, below.
Each Fund may invest its overnight sweep cash in the PGIM Institutional Money Market Fund (the “Money Market Fund”), registered under the 1940 Act and managed by PGIM Investments. Through each Fund’s investments in the mentioned underlying fund, PGIM Investments and/or its affiliates are paid fees or compensated for providing their services. Earnings from the Money Market Fund are disclosed on the Statement of Operations as “Affiliated dividend income”.
Prudential Investment Management Services LLC (“PIMS” or the “Distributor”), acts as the distributor of each Fund pursuant to the terms of a distribution agreement (“Distribution
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Agreement”) between the Trust and the Distributor. The Distributor is a subsidiary of Prudential Financial, Inc. (“Prudential”). Shares are continuously offered for sale by the Distributor only. Although the Distributor does not receive any fees under the Distribution Agreement, the Manager or its affiliates may pay the Distributor for certain distribution related services.
4. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short- term investments and U.S. Government securities) for the period ended February 28, 2019, were as follow:
Fund | Cost of Purchases | Proceeds from Sales | ||||||
PGIM QMA Strategic AlphaLarge-Cap Core ETF | $ | 15,289,701 | $ | 2,898,612 | ||||
PGIM QMA Strategic AlphaSmall-Cap Growth ETF | $ | 15,695,365 | $ | 3,215,814 | ||||
PGIM QMA Strategic AlphaSmall-Cap Value ETF | $ | 15,322,007 | $ | 2,867,245 | ||||
PGIM QMA Strategic Alpha International Equity ETF | $ | 29,536,699 | $ | — |
For the reporting period ended February 28, 2019, no17a-7 transactions were entered into by the Funds.
5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of February 28, 2019 were as follows:
PGIM QMA Strategic AlphaLarge-Cap Core ETF
Tax Basis | $ | 12,358,398 | ||
|
| |||
Gross Unrealized Appreciation | 670,413 | |||
Gross Unrealized Depreciation | (359,550 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 310,863 | ||
|
|
PGIM QMA Strategic AlphaSmall-Cap Growth ETF
Tax Basis | $ | 12,806,844 | ||
|
| |||
Gross Unrealized Appreciation | 723,370 | |||
Gross Unrealized Depreciation | (570,465 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 152,905 | ||
|
|
PGIM QMA Strategic AlphaSmall-Cap Value ETF
Tax Basis | $ | 12,619,867 | ||
|
| |||
Gross Unrealized Appreciation | 491,912 | |||
Gross Unrealized Depreciation | (471,464 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 20,448 | ||
|
|
PGIM QMA Strategic Alpha ETFs | 115 |
Notes to Financial Statements(unaudited) (continued)
PGIM QMA Strategic Alpha International Equity ETF
Tax Basis | $ | 29,958,712 | ||
|
| |||
Gross Unrealized Appreciation | 1,703,870 | |||
Gross Unrealized Depreciation | (816,273 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 887,597 | ||
|
|
The Manager has analyzed each Fund’s tax positions taken and has concluded that no provision for income tax is required in each Fund’s financial statements for the current reporting period. Each Fund’s federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service.
6. Capital and Ownership
Each Fund is an exchange-traded fund, commonly known as an “ETF”. Individual shares of the Funds may only be purchased and sold in secondary market transactions through brokers or other financial intermediaries. Shares of the Funds are listed for trading on the NYSE Arca, Inc. (the “Exchange”), and because the shares of the Funds trade at market prices rather than NAV, shares of the Funds may trade at a price greater than NAV (a premium) or less than NAV (a discount). Each Fund will issue and redeem its shares at NAV only in a large specified number of shares called a “Creation Unit” or multiples thereof to investors who have entered into an agreement with the Distributor and are authorized to transact with the Trust in Creation Units (“Authorized Participants”). A Creation Unit of PGIM QMA Strategic AlphaLarge-Cap Core ETF, PGIM QMA Strategic AlphaSmall-Cap Growth ETF, PGIM QMA Strategic AlphaSmall-Cap Value ETF and PGIM QMA Strategic Alpha International Equity ETF consists of 50,000 shares, 50,000 shares, 50,000 shares and 100,000 shares of the Fund, respectively. The Funds generally issue and redeem Creation Units in return for a specified amount of cash and/or designated portfolio of securities. Except when aggregated in Creation Units, shares are not individually redeemable. Fixed transaction fees are imposed for the transfer and other costs associated with the creation or redemption of Creation Units. Authorized Participants are responsible for paying these fixed transaction fees to BBH.
The Trust is authorized to issue an unlimited number of shares of beneficial interest, $0.001 par value per share.
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As of February 28, 2019, Prudential, through its affiliate entities, including affiliated funds (if applicable), owned the following number of shares of the Funds:
Fund | ||||
PGIM QMA Strategic AlphaLarge-Cap Core ETF | 200,000 | |||
PGIM QMA Strategic AlphaSmall-Cap Growth ETF | 200,000 | |||
PGIM QMA Strategic AlphaSmall-Cap Value ETF | 200,000 | |||
PGIM QMA Strategic Alpha International Equity ETF | 500,000 |
At reporting period end, the following number of shareholders of record, each holding greater than 5% of the Fund, held the following percentage of the Funds’ outstanding shares.
Fund | Number of Shareholders | % of Outstanding Shares | % of Outstanding Shares held by affiliate | |||||||||
PGIM QMA Strategic AlphaLarge-Cap Core ETF | 2 | 99 | 80 | |||||||||
PGIM QMA Strategic AlphaSmall-Cap Growth ETF | 2 | 100 | 80 | |||||||||
PGIM QMA Strategic AlphaSmall-Cap Value ETF | 2 | 100 | 80 | |||||||||
PGIM QMA Strategic Alpha International Equity ETF | 2 | 100 | 83 |
Transactions in shares of beneficial interest were as follows:
PGIM QMA Strategic AlphaLarge-Cap Core ETF
Period ended February 28, 2019:
Shares | Amount | |||||||
Shares sold | 250,000 | $ | 12,445,905 | |||||
Shares reacquired | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 250,000 | 12,445,905 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 250,000 | $ | 12,445,905 | |||||
|
|
|
|
PGIM QMA Strategic AlphaSmall-Cap Growth ETF
Period ended February 28, 2019:
Shares | Amount | |||||||
Shares sold | 250,000 | $ | 12,487,720 | |||||
Shares reacquired | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 250,000 | 12,487,720 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 250,000 | $ | 12,487,720 | |||||
|
|
|
|
PGIM QMA Strategic Alpha ETFs | 117 |
Notes to Financial Statements(unaudited) (continued)
PGIM QMA Strategic AlphaSmall-Cap Value ETF
Period ended February 28, 2019:
Shares | Amount | |||||||
Shares sold | 250,000 | $ | 12,488,700 | |||||
Shares reacquired | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 250,000 | 12,488,700 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 250,000 | $ | 12,488,700 | |||||
|
|
|
|
PGIM QMA Strategic Alpha International Equity ETF
Period ended February 28, 2019:
Shares | Amount | |||||||
Shares sold | 600,000 | $ | 29,969,050 | |||||
Shares reacquired | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 600,000 | 29,969,050 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 600,000 | $ | 29,969,050 | |||||
|
|
|
|
7. Borrowings
The Trust, on behalf of the Funds, along with other affiliated registered investment companies (collectively the “SCA participants”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks.
The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 4, 2018 through October 3, 2019. The SCA participants pay an annualized commitment fee of 0.15% of the unused portion of the SCA. The SCA participants portion of the commitment fee for the unused amount, allocated based upon a method approved by the Board, is accrued daily and paid quarterly. The interest on borrowings under the SCA is paid monthly and at a per annum interest rate based upon a contractual spread plus the higher of (1) the effective federal funds rate, (2) the1-month LIBOR rate or (3) zero percent.
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be
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possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Funds in the SCA equitably.
The Funds did not utilize the SCA during the period ended February 28, 2019.
8. Risk of Investing in the Fund
The Funds’ risks include, but are not limited to, some or all of the risks discussed below:
Authorized Participant Concentration Risk:Only an Authorized Participant may engage in creation or redemption transactions directly with the Funds. The Funds have a limited number of intermediaries that act as Authorized Participants and none of these Authorized Participants is or will be obligated to engage in creation or redemption transactions. To the extent that these intermediaries exit the business or are unable to or choose not to proceed with creation and/or redemption orders with respect to the Funds and no other Authorized Participant creates or redeems, shares of the Funds may trade at a substantial discount or premium to NAV, may trade at larger spreads and possibly face trading halts and/or delisting.
Equity and Equity-Related Securities Risks:The value of a particular security could go down and you could lose money. In addition to an individual security losing value, the value of the equity markets or a sector in which the Series invests could go down. The Series’ holdings can vary significantly from broad market indexes and the performance of the Series can deviate from the performance of these indexes. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
ETF Shares Trading Risk:Funds shares are listed for trading on the Exchange and the shares are bought and sold in the secondary market at market prices. The market prices of the shares of the Funds are expected to fluctuate in response to changes in the Funds’ NAVs, the intraday value of the Funds’ holdings and supply and demand for shares of the Funds. We cannot predict whether shares of the Funds will trade above, below or at their NAV. Trading on the Exchange, including trading of Funds shares, may be halted in certain circumstances and shareholders may not be able to sell Funds shares at the time or price desired. During periods of stressed market conditions, the market for the shares of the Funds may become less liquid in response to deteriorating liquidity in the markets for the Funds’ portfolio investments. This adverse effect on the liquidity of the Funds’ shares could lead to differences between the market price of the Funds’ shares and the NAV of those shares. There can be no assurance that the requirements of the Exchange to maintain the listing of shares of the Funds will continue to be met. At times, trading in the securities of ETFs has become volatile and unpredictable and the price of ETFs shares has diverged from market driven fundamentals. Since the Funds are new, an active secondary market for the shares of the Funds may not develop or may not continue once developed.
PGIM QMA Strategic Alpha ETFs | 119 |
Notes to Financial Statements(unaudited) (continued)
Risks of Investing in Equity and Mortgage Real Estate Investment Trusts (collectively equity REITs):Real estate securities are subject to similar risks as direct investments in real estate and mortgages, and their value will depend on the value of the underlying properties or the underlying loans or interests. The underlying loans may be subject to the risks of default or of payments that occur earlier or later than expected, and such loans may also includeso-called “subprime” mortgages. The value of these securities will rise and fall in response to many factors, Including economic conditions, the demand for rental property and interest rates. In particular, the value of these securities may decline when interest rates rise and will also be affected by the real estate market and by the management of the underlying properties.
In addition, investing in equity REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. Equity REITs may be affected by changes in the value of the underlying property owned by the equity REITs, while mortgage equity REITs may be affected by the quality of any credit extended. Equity REITs are dependent upon management skills, may not be diversified geographically or by property/mortgage asset type, and are subject to heavy cash flow dependency, default by borrowers and self-liquidation. Since equity REITs are relatively smaller in size when compared to the broader market, and smaller companies tend to be more volatile than larger companies, they may be more volatile and/or more illiquid than other types of equity securities. Equity REITs are subject to interest rate risks. Equity REITs may incur significant amounts of leverage. The Fund will indirectly bear a portion of the expenses, including management fees, paid by each equity REIT in which it invests, in addition to the expenses of the Fund.
Foreign Securities Risk:The Fund’s investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk. Foreign countries in which the Fund may invest may have markets that are less liquid, less regulated and more volatile than US markets. The value of the Fund’s investments may decline because of factors affecting the particular issuer as well as foreign markets and issuers generally, such as unfavorable government actions, and political or financial instability.
Market and Credit Risk:Securities markets may be volatile and the market prices of the Funds’ securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Funds fall, the value of an investment in the Funds will decline. Additionally, the Funds may also be exposed to credit risk in the event that an issuer or guarantor fails to perform or that an institution or entity with which the Funds have unsettled or open transactions defaults.
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9. Recent Accounting Pronouncements and Reporting Updates
In August 2018, the Securities and Exchange Commission (the “SEC”) adopted amendments to RegulationS-X to update and simplify the disclosure requirements for registered investment companies by eliminating requirements that are redundant or duplicative of US GAAP requirements or other SEC disclosure requirements. The new amendments require the presentation of the total, rather than the components, of distributable earnings on the Statement of Assets and Liabilities and the total, rather than the components, of dividends from net investment income and distributions from net realized gains on the Statements of Changes in Net Assets. The amendments also removed the requirement for the parenthetical disclosure of undistributed net investment income on the Statements of Changes in Net Assets and certain tax adjustments that were reflected in the Notes to Financial Statements. All of these have been reflected in the Funds’ financial statements.
In August 2018, the FASB issued Accounting Standards Update (“ASU”)No. 2018-13, which changes certain fair value measurement disclosure requirements. The new ASU, in addition to other modifications and additions, removes the requirement to disclose the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, and the Funds’ policy for the timing of transfers between levels. The amendments are effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Manager has evaluated the implications of certain provisions of the ASU and has determined to early adopt aspects related to the removal and modification of certain fair value measurement disclosures under the ASU effective immediately. At this time, the Manager is evaluating the implications of certain other provisions of the ASU related to new disclosure requirements and any impact on the financial statement disclosures has not yet been determined.
PGIM QMA Strategic Alpha ETFs | 121 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Financial Highlights(unaudited)
October 17, 2018(d) through | ||||
Per Share Operating Performance(a): | ||||
Net Asset Value, Beginning of Period | $50.00 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 0.37 | |||
Net realized and unrealized gain (loss) on investments | 0.63 | |||
Total from investment operations | 1.00 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (0.22 | ) | ||
Net asset value, end of period | $50.78 | |||
Total Return(b): | 2.04% | |||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $12,696 | |||
Average net assets (000) | $11,914 | |||
Ratios to average net assets: | ||||
Expenses after waivers and/or expense reimbursement | 0.17% | (c) | ||
Expenses before waivers and/or expense reimbursement | 0.17% | (c) | ||
Net investment income (loss) | 2.11% | (c) | ||
Portfolio turnover rate | 24% | (e) |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of the period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Annualized. |
(d) | Commencement of operations. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
122 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Financial Highlights(unaudited)
November 13, 2018(d) through | ||||
Per Share Operating Performance(a): | ||||
Net Asset Value, Beginning of Period | $50.00 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 0.17 | |||
Net realized and unrealized gain (loss) on investments | 1.79 | |||
Total from investment operations | 1.96 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (0.09 | ) | ||
Net asset value, end of period | $51.87 | |||
Total Return(b): | 3.94% | |||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $12,967 | |||
Average net assets (000) | $11,792 | |||
Ratios to average net assets: | ||||
Expenses after waivers and/or expense reimbursement | 0.29% | (c) | ||
Expenses before waivers and/or expense reimbursement | 0.29% | (c) | ||
Net investment income (loss) | 1.20% | (c) | ||
Portfolio turnover rate | 27% | (e) |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of the period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Annualized. |
(d) | Commencement of operations. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 123 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Financial Highlights(unaudited)
November 13, 2018(d) through | ||||
Per Share Operating Performance(a): | ||||
Net Asset Value, Beginning of Period | $50.00 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 0.29 | |||
Net realized and unrealized gain (loss) on investments | 0.51 | |||
Total from investment operations | 0.80 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (0.19 | ) | ||
Net asset value, end of period | $50.61 | |||
Total Return(b): | 1.62% | |||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $12,652 | |||
Average net assets (000) | $11,689 | |||
Ratios to average net assets: | ||||
Expenses after waivers and/or expense reimbursement | 0.29% | (c) | ||
Expenses before waivers and/or expense reimbursement | 0.29% | (c) | ||
Net investment income (loss) | 2.04% | (c) | ||
Portfolio turnover rate | 24% | (e) |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of the period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Annualized. |
(d) | Commencement of operations. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
124 |
PGIM QMA Strategic Alpha International Equity ETF
Financial Highlights(unaudited)
December 4, 2018(d) through | ||||
Per Share Operating Performance(a): | ||||
Net Asset Value, Beginning of Period | $50.00 | |||
Income (loss) from investment operations: | ||||
Net investment income (loss) | 0.15 | |||
Net realized and unrealized gain (loss) on investments | 1.44 | |||
Total from investment operations | 1.59 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (0.07 | ) | ||
Net asset value, end of period | $51.52 | |||
Total Return(b): | 3.19% | |||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $30,915 | |||
Average net assets (000) | $29,065 | |||
Ratios to average net assets: | ||||
Expenses after waivers and/or expense reimbursement | 0.29% | (c) | ||
Expenses before waivers and/or expense reimbursement | 0.29% | (c) | ||
Net investment income (loss) | 1.32% | (c) | ||
Portfolio turnover rate | 0% | (e) |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of the period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Annualized. |
(d) | Commencement of operations. |
(e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 125 |
Approval of Advisory Agreements(unaudited)
PGIM QMA Strategic AlphaLarge-Cap Core ETF
Initial Approval of the Fund’s Advisory Agreements
The Board of Trustees of PGIM ETF Trust (the Board) considered the proposed management agreement with PGIM Investments LLC (the Manager) and the proposed subadvisory agreement with QMA LLC (QMA), formerly known as Quantitative Management Associates LLC, to serve as the subadviser (the Subadviser) with respect to the PGIM QMA Strategic AlphaLarge-Cap Core ETF (the Fund) prior to the Fund’s commencement of operations. The Board, including all of the Independent Trustees, met on June 20, 2018 (the Meeting) and approved the agreements for an initialtwo-year period, after concluding that approval of the agreements was in the best interests of the Fund.
In advance of the Meeting, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its considerations.
In approving the agreements, the Board, including the Independent Trustees advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services to be provided to the Fund by the Manager and the Subadviser; any relevant comparable performance information and the Subadviser’s qualifications and track record in serving other affiliated funds; and the fees proposed to be paid by the Fund to the Manager and by the Manager to the Subadviser under the agreements. In connection with its deliberations, the Board considered information provided by the Manager and the Subadviser at or in advance of the Meeting. The Board also considered information that the Trustees received throughout the year regarding the Manager and the Subadviser in their capacity as directors or trustees of other funds in the Prudential organization. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Board’s decision to approve the agreements with respect to the Fund.
The Trustees determined that the overall arrangements between the Fund and the Manager, which will serve as the Fund’s investment manager pursuant to a management agreement, and between the Manager and the Subadviser, which will serve as the Fund’s subadviser pursuant to the terms of a subadvisory agreement, are appropriate in light of the services to be performed and the fees to be charged under the agreements and such other matters as the Trustees considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the Trustees’ reaching their determinations to approve the agreements are discussed below.
PGIM QMA Strategic Alpha ETFs |
Approval of Advisory Agreements(continued)
Nature, Quality and Extent of Services
With respect to the Manager, the Board noted that it had received and considered information about the Manager at the Meeting, including information relating to the approval and renewal, as applicable, of the management agreements between the Manager and the other PGIM Retail Funds, as well as information received at other regular meetings throughout the year of the Prudential Retail Funds, regarding the nature, quality and extent of services provided by the Manager. The Board considered the services to be provided by the Manager, including but not limited to the oversight of the Subadviser, as well as the provision of fund recordkeeping, compliance and other services to the Fund. With respect to the Manager’s oversight of the Subadviser, the Board noted that the Manager’s Strategic Investment Research Group, which is a business unit of the Manager, is responsible for monitoring and reporting to the Manager’s senior management on the performance and operations of the Subadviser. The Board also noted that the Manager pays the salaries of all of the officers of the Trust and Trustees of the Trust who are affiliated persons of the Manager or Subadviser. The Board reviewed the qualifications, backgrounds and responsibilities of the Manager’s senior management responsible for the oversight of the Fund and the Subadviser, and was also provided with information pertaining to the Manager’s organizational structure, senior management, investment operations and other relevant information. The Board noted that the Manager had engaged personnel and consultants with experience in the management of exchanged-traded funds. The Board further noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer as to the Manager for services provided to other PGIM Retail Funds. The Board noted that it had concluded that it was satisfied with the nature, quality and extent of the services provided by the Manager to the other PGIM Retail Funds and determined that it was reasonable to conclude that the nature, quality and extent of services to be provided by the Manager under the management agreement for the Fund would be similar in nature to those provided under the other management agreements.
With respect to the Subadviser, the Board noted that it had received and considered information about the Subadviser at the Meeting, including information relating to the approval and renewal, as applicable, of subadvisory agreements between the Manager and the Subadviser with respect to other Prudential Retail Funds, as well as at other regular meetings throughout the year, regarding the nature, quality and extent of services provided by the Subadviser. The Board considered, among other things, the qualifications, background and experience of the Subadviser’s portfolio managers who will be responsible for theday-to-day management of the Fund’s portfolio, as well as information on the Subadviser’s organizational structure, senior management, investment operations and other relevant information. The Board also considered theSub-Adviser’s experience managing other similar investment strategies. The Board further noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer as to the Subadviser for
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services provided to other Prudential Retail Funds. The Board noted that it was satisfied with the nature, quality and extent of services provided by the Subadviser with respect to the other PGIM Retail Funds served by the Subadviser and determined that it was reasonable to conclude that the nature, quality and extent of services to be provided by the Subadviser under the subadvisory agreement for the Fund would be similar in nature to those provided under the other subadvisory agreements. The Board noted that the Subadviser is affiliated with the Manager.
Performance
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, no investment performance for the Fund existed for Board review. The Fund’s strategy is a new strategy for the Subadviser. The Manager will provide information relating to performance to the Board in connection with subsequent reviews of the management agreement and subadvisory agreement.
Fee Rates
The Board considered the proposed management fees of 0.17% of the average daily value of the Fund’s investable assets to be paid by the Fund to the Manager and the proposed subadvisory fees of 0.085% of the Fund’s investable assets to be paid by the Manager to the Subadviser. The Board also considered that for purposes of calculating the proposed management and subadvisory fees, investable assets of the Fund means the Fund’s net assets plus any borrowings for investment purposes. The Board considered the nature of the management fee as a unitary fee and that the Manager would be responsible for the Fund’s expenses except for those expenses reflected in the management agreement as remaining the responsibility of the Fund. Under the Management Agreement, the Fund generally will be responsible for only paying interest and other borrowing expenses, taxes, brokerage expenses, acquired fund fees and expenses, expenses associated with shareholder meetings and proxy statements, extraordinary expenses and future12b-1 fees (if any).
The Board considered information provided by the Manager comparing the Fund’s proposed management fee rate and total expenses (including the effects of leverage) to the Lipper 15(c) Peer Group. The Board noted that the Fund’s management fee was in the first quartile and anticipated total expenses were in the first quartile of the Lipper Peer Group (first quartile being the lowest fee) based upon net assets assuming outstanding leverage.
The Board concluded that the proposed management fee and total expenses were reasonable in light of the services to be provided.
PGIM QMA Strategic Alpha ETFs |
Approval of Advisory Agreements(continued)
Profitability
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, the Board noted that there was no historical profitability information with respect to the Fund to be reviewed. The Board noted that it would review profitability information in connection with subsequent renewals of the management and subadvisory agreements.
Economies of Scale
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, the Board noted that there was no historical information regarding economies of scale with respect to the Fund to be reviewed. The Board noted that it would review such information in connection with subsequent renewals of the management and subadvisory agreements.
Other Benefits to the Manager and the Subadviser
The Board considered potential“fall-out” or ancillary benefits anticipated to be received by the Manager and the Subadviser. The Board concluded that any potential benefits to be derived by the Manager were similar to benefits derived by the Manager in connection with its management of the other affiliated funds managed by the Manager, which are reviewed on an annual basis. The Board also concluded that any potential benefits to be derived by the Subadviser were consistent with those generally derived by subadvisers to the Prudential Retail Funds, and that those benefits are reviewed on an annual basis. The Board concluded that any potential benefits derived by the Manager and the Subadviser were consistent with the types of benefits generally derived by investment managers and subadvisers to funds.
* * *
After full consideration of these and other factors, the Board concluded that the approval of the agreements was in the best interests of the Fund.
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Approval of Advisory Agreements(unaudited)
PGIM QMA Strategic AlphaSmall-Cap Growth ETF
Initial Approval of the Fund’s Advisory Agreements
The Board of Trustees of PGIM ETF Trust (the Board) considered the proposed management agreement with PGIM Investments LLC (the Manager) and the proposed subadvisory agreement with QMA LLC (QMA), formerly known as Quantitative Management Associates LLC, to serve as the subadviser (the Subadviser) with respect to the PGIM QMA Strategic AlphaSmall-Cap Growth ETF (the Fund) prior to the Fund’s commencement of operations. The Board, including all of the Independent Trustees, met on June 20, 2018 (the Meeting) and approved the agreements for an initialtwo-year period, after concluding that approval of the agreements was in the best interests of the Fund.
In advance of the Meeting, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its considerations.
In approving the agreements, the Board, including the Independent Trustees advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services to be provided to the Fund by the Manager and the Subadviser; any relevant comparable performance information and the Subadviser’s qualifications and track record in serving other affiliated funds; and the fees proposed to be paid by the Fund to the Manager and by the Manager to the Subadviser under the agreements. In connection with its deliberations, the Board considered information provided by the Manager and the Subadviser at or in advance of the Meeting. The Board also considered information that the Trustees received throughout the year regarding the Manager and the Subadviser in their capacity as directors or trustees of other funds in the Prudential organization. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Board’s decision to approve the agreements with respect to the Fund.
The Trustees determined that the overall arrangements between the Fund and the Manager, which will serve as the Fund’s investment manager pursuant to a management agreement, and between the Manager and the Subadviser, which will serve as the Fund’s subadviser pursuant to the terms of a subadvisory agreement, are appropriate in light of the services to be performed and the fees to be charged under the agreements and such other matters as the Trustees considered relevant in the exercise of their business judgment. The material factors and conclusions that formed the basis for the Trustees’ reaching their determinations to approve the agreements are discussed below.
PGIM QMA Strategic Alpha ETFs |
Approval of Advisory Agreements(continued)
Nature, Quality and Extent of Services
With respect to the Manager, the Board noted that it had received and considered information about the Manager at the Meeting, including information relating to the approval and renewal, as applicable, of the management agreements between the Manager and the other Prudential Retail Funds, as well as information received at other regular meetings throughout the year of the Prudential Retail Funds, regarding the nature, quality and extent of services provided by the Manager. The Board considered the services to be provided by the Manager, including but not limited to the oversight of the Subadviser, as well as the provision of fund recordkeeping, compliance and other services to the Fund. With respect to the Manager’s oversight of the Subadviser, the Board noted that the Manager’s Strategic Investment Research Group, which is a business unit of the Manager, is responsible for monitoring and reporting to the Manager’s senior management on the performance and operations of the Subadviser. The Board also noted that the Manager pays the salaries of all of the officers of the Trust and Trustees of the Trust who are affiliated persons of the Manager or the Subadviser. The Board reviewed the qualifications, backgrounds and responsibilities of the Manager’s senior management responsible for the oversight of the Fund and the Subadviser, and was also provided with information pertaining to the Manager’s organizational structure, senior management, investment operations and other relevant information. The Board noted that the Manager had engaged personnel and consultants with experience in the management of exchanged-traded funds. The Board further noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer as to the Manager for services provided to other Prudential Retail Funds. The Board noted that it had concluded that it was satisfied with the nature, quality and extent of the services provided by the Manager to the other Prudential Retail Funds and determined that it was reasonable to conclude that the nature, quality and extent of services to be provided by the Manager under the management agreement for the Fund would be similar in nature to those provided under the other management agreements.
With respect to the Subadviser, the Board noted that it had received and considered information about the Subadviser at the Meeting, including information relating to the approval and renewal, as applicable, of subadvisory agreements between the Manager and the Subadviser with respect to other Prudential Retail Funds, as well as at other regular meetings throughout the year, regarding the nature, quality and extent of services provided by the Subadviser. The Board considered, among other things, the qualifications, background and experience of the Subadviser’s portfolio managers who will be responsible for theday-to-day management of the Fund’s portfolio, as well as information on the Subadviser’s organizational structure, senior management, investment operations and other relevant information. The Board also considered theSub-Adviser’s experience managing other similar investment strategies. The Board further noted that it received favorable
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compliance reports from the Fund’s Chief Compliance Officer as to the Subadviser for services provided to other Prudential Retail Funds. The Board noted that it was satisfied with the nature, quality and extent of services provided by the Subadviser with respect to the other Prudential Retail Funds served by the Subadviser and determined that it was reasonable to conclude that the nature, quality and extent of services to be provided by the Subadviser under the subadvisory agreement for the Fund would be similar in nature to those provided under the other subadvisory agreements. The Board noted that the Subadviser is affiliated with the Manager.
Performance
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, no investment performance for the Fund existed for Board review. The Fund’s strategy is a new strategy for the Subadviser. The Manager will provide information relating to performance to the Board in connection with subsequent reviews of the management agreement and subadvisory agreement.
Fee Rates
The Board considered the proposed management fees of 0.29% of the average daily value of the Fund’s investable assets to be paid by the Fund to the Manager and the proposed subadvisory fees of 0.145% of the Fund’s investable assets to be paid by the Manager to the Subadviser. The Board also considered that for purposes of calculating the proposed management and subadvisory fees, investable assets of the Fund means the Fund’s net assets plus any borrowings for investment purposes. The Board considered the nature of the management fee as a unitary fee and that the Manager would be responsible for the Fund’s expenses except for those expenses reflected in the management agreement as remaining the responsibility of the Fund. Under the Management Agreement, the Fund generally will be responsible for only paying interest and other borrowing expenses, taxes, brokerage expenses, acquired fund fees and expenses, expenses associated with shareholder meetings and proxy statements, extraordinary expenses and future12b-1 fees (if any).
The Board considered information provided by the Manager comparing the Fund’s proposed management fee rate and total expenses (including the effects of leverage) to the Lipper 15(c) Peer Group. The Board noted that the Fund’s management fee was in the first quartile and anticipated total expenses were in the first quartile of the Lipper Peer Group (first quartile being the lowest fee) based upon net assets assuming outstanding leverage.
The Board concluded that the proposed management fee and total expenses were reasonable in light of the services to be provided.
PGIM QMA Strategic Alpha ETFs |
Approval of Advisory Agreements(continued)
Profitability
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, the Board noted that there was no historical profitability information with respect to the Fund to be reviewed. The Board noted that it would review profitability information in connection with subsequent renewals of the management and subadvisory agreements.
Economies of Scale
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, the Board noted that there was no historical information regarding economies of scale with respect to the Fund to be reviewed. The Board noted that it would review such information in connection with subsequent renewals of the management and subadvisory agreements.
Other Benefits to the Manager and the Subadviser
The Board considered potential“fall-out” or ancillary benefits anticipated to be received by the Manager and the Subadviser. The Board concluded that any potential benefits to be derived by the Manager were similar to benefits derived by the Manager in connection with its management of the other affiliated funds managed by the Manager, which are reviewed on an annual basis. The Board also concluded that any potential benefits to be derived by the Subadviser were consistent with those generally derived by subadvisers to the Prudential Retail Funds, and that those benefits are reviewed on an annual basis. The Board concluded that any potential benefits derived by the Manager and the Subadviser were consistent with the types of benefits generally derived by investment managers and subadvisers to funds.
* * *
After full consideration of these and other factors, the Board concluded that the approval of the agreements was in the best interests of the Fund.
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Approval of Advisory Agreements(unaudited)
PGIM QMA Strategic AlphaSmall-Cap Value ETF
Initial Approval of the Fund’s Advisory Agreements
The Board of Trustees of PGIM ETF Trust (the Board) considered the proposed management agreement with PGIM Investments LLC (the Manager) and the proposed subadvisory agreement with QMA LLC (QMA), formerly known as Quantitative Management Associates LLC, to serve as the subadviser (the Subadviser) with respect to the PGIM QMA Strategic AlphaSmall-Cap Value ETF (the Fund) prior to the Fund’s commencement of operations. The Board, including all of the Independent Trustees, met on June 20, 2018 (the Meeting) and approved the agreements for an initialtwo-year period, after concluding that approval of the agreements was in the best interests of the Fund.
In advance of the Meeting, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its considerations.
In approving the agreements, the Board, including the Independent Trustees advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services to be provided to the Fund by the Manager and the Subadviser; any relevant comparable performance information and the Subadviser’s qualifications and track record in serving other affiliated funds; and the fees proposed to be paid by the Fund to the Manager and by the Manager to the Subadviser under the agreements. In connection with its deliberations, the Board considered information provided by the Manager and the Subadviser at or in advance of the Meeting. The Board also considered information that the Trustees received throughout the year regarding the Manager and the Subadviser in their capacity as directors or trustees of other funds in the Prudential organization. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Board’s decision to approve the agreements with respect to the Fund.
The Trustees determined that the overall arrangements between the Fund and the Manager, which will serve as the Fund’s investment manager pursuant to a management agreement, and between the Manager and the Subadviser, which will serve as the Fund’s subadviser pursuant to the terms of a subadvisory agreement, are appropriate in light of the services to be performed and the fees to be charged under the agreements and such other matters as the Trustees considered relevant in the exercise of their business judgment.
The material factors and conclusions that formed the basis for the Trustees’ reaching their determinations to approve the agreements are discussed below.
PGIM QMA Strategic Alpha ETFs |
Approval of Advisory Agreements(continued)
Nature, Quality and Extent of Services
With respect to the Manager, the Board noted that it had received and considered information about the Manager at the Meeting, including information relating to the approval and renewal, as applicable, of the management agreements between the Manager and the other Prudential Retail Funds, as well as information received at other regular meetings throughout the year of the Prudential Retail Funds, regarding the nature, quality and extent of services provided by the Manager. The Board considered the services to be provided by the Manager, including but not limited to the oversight of the Subadviser, as well as the provision of fund recordkeeping, compliance and other services to the Fund. With respect to the Manager’s oversight of the Subadviser, the Board noted that the Manager’s Strategic Investment Research Group, which is a business unit of the Manager, is responsible for monitoring and reporting to the Manager’s senior management on the performance and operations of the Subadviser. The Board also noted that the Manager pays the salaries of all of the officers of the Trust and Trustees of the Trust who are affiliated persons of the Manager or Subadviser. The Board reviewed the qualifications, backgrounds and responsibilities of the Manager’s senior management responsible for the oversight of the Fund and the Subadviser, and was also provided with information pertaining to the Manager’s organizational structure, senior management, investment operations and other relevant information. The Board noted that the Manager had engaged personnel and consultants with experience in the management of exchanged-traded funds. The Board further noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer as to the Manager for services provided to other Prudential Retail Funds. The Board noted that it had concluded that it was satisfied with the nature, quality and extent of the services provided by the Manager to the other Prudential Retail Funds and determined that it was reasonable to conclude that the nature, quality and extent of services to be provided by the Manager under the management agreement for the Fund would be similar in nature to those provided under the other management agreements.
With respect to the Subadviser, the Board noted that it had received and considered information about the Subadviser at the Meeting, including information relating to the approval and renewal, as applicable, of subadvisory agreements between the Manager and the Subadviser with respect to other Prudential Retail Funds, as well as at other regular meetings throughout the year, regarding the nature, quality and extent of services provided by the Subadviser. The Board considered, among other things, the qualifications, background and experience of the Subadviser’s portfolio managers who will be responsible for theday-to-day management of the Fund’s portfolio, as well as information on the Subadviser’s organizational structure, senior management, investment operations and other relevant information. The Board also considered theSub-Adviser’s experience managing other similar investment strategies. The Board further noted that it received favorable
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compliance reports from the Fund’s Chief Compliance Officer as to the Subadviser for services provided to other Prudential Retail Funds. The Board noted that it was satisfied with the nature, quality and extent of services provided by the Subadviser with respect to the other Prudential Retail Funds served by the Subadviser and determined that it was reasonable to conclude that the nature, quality and extent of services to be provided by the Subadviser under the subadvisory agreement for the Fund would be similar in nature to those provided under the other subadvisory agreements. The Board noted that the Subadviser is affiliated with the Manager.
Performance
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, no investment performance for the Fund existed for Board review. The Fund’s strategy is a new strategy for the Subadviser. The Manager will provide information relating to performance to the Board in connection with subsequent reviews of the management agreement and subadvisory agreement.
Fee Rates
The Board considered the proposed management fees of 0.29% of the average daily value of the Fund’s investable assets to be paid by the Fund to the Manager and the proposed subadvisory fees of 0.145% of the Fund’s investable assets to be paid by the Manager to the Subadviser. The Board also considered that for purposes of calculating the proposed management and subadvisory fees, investable assets of the Fund means the Fund’s net assets plus any borrowings for investment purposes. The Board considered the nature of the management fee as a unitary fee and that the Manager would be responsible for the Fund’s expenses except for those expenses reflected in the management agreement as remaining the responsibility of the Fund. Under the Management Agreement, the Fund generally will be responsible for only paying interest and other borrowing expenses, taxes, brokerage expenses, acquired fund fees and expenses, expenses associated with shareholder meetings and proxy statements, extraordinary expenses and future12b-1 fees (if any).
The Board considered information provided by the Manager comparing the Fund’s proposed management fee rate and total expenses (including the effects of leverage) to the Lipper 15(c) Peer Group. The Board noted that the Fund’s management fee was in the first quartile and anticipated total expenses were in the first quartile of the Lipper Peer Group (first quartile being the lowest fee) based upon net assets assuming outstanding leverage.
The Board concluded that the proposed management fee and total expenses were reasonable in light of the services to be provided.
PGIM QMA Strategic Alpha ETFs |
Approval of Advisory Agreements(continued)
Profitability
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, the Board noted that there was no historical profitability information with respect to the Fund to be reviewed. The Board noted that it would review profitability information in connection with subsequent renewals of the management and subadvisory agreements.
Economies of Scale
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, the Board noted that there was no historical information regarding economies of scale with respect to the Fund to be reviewed. The Board noted that it would review such information in connection with subsequent renewals of the management and subadvisory agreements.
Other Benefits to the Manager and the Subadviser
The Board considered potential“fall-out” or ancillary benefits anticipated to be received by the Manager and the Subadviser. The Board concluded that any potential benefits to be derived by the Manager were similar to benefits derived by the Manager in connection with its management of the other affiliated funds managed by the Manager, which are reviewed on an annual basis. The Board also concluded that any potential benefits to be derived by the Subadviser were consistent with those generally derived by subadvisers to the Prudential Retail Funds, and that those benefits are reviewed on an annual basis. The Board concluded that any potential benefits derived by the Manager and the Subadviser were consistent with the types of benefits generally derived by investment managers and subadvisers to funds.
* * *
After full consideration of these and other factors, the Board concluded that the approval of the agreements was in the best interests of the Fund.
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Approval of Advisory Agreements(unaudited)
PGIM QMA Strategic Alpha International Equity ETF
Initial Approval of the Fund’s Advisory Agreements
The Board of Trustees of PGIM ETF Trust (the Board) considered the proposed management agreement with PGIM Investments LLC (the Manager) and the proposed subadvisory agreement with QMA LLC (QMA), formerly known as Quantitative Management Associates LLC, to serve as the subadviser (the Subadviser) with respect to the PGIM QMA Strategic Alpha International Equity ETF (the Fund) prior to the Fund’s commencement of operations. The Board, including all of the Independent Trustees, met on June 20, 2018 (the Meeting) and approved the agreements for an initialtwo-year period, after concluding that approval of the agreements was in the best interests of the Fund.
In advance of the Meeting, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its considerations.
In approving the agreements, the Board, including the Independent Trustees advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services to be provided to the Fund by the Manager and the Subadviser; any relevant comparable performance information and the Subadviser’s qualifications and track record in serving other affiliated funds; and the fees proposed to be paid by the Fund to the Manager and by the Manager to the Subadviser under the agreements. In connection with its deliberations, the Board considered information provided by the Manager and the Subadviser at or in advance of the Meeting. The Board also considered information that the Trustees received throughout the year regarding the Manager and the Subadviser in their capacity as directors or trustees of other funds in the Prudential organization. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Board’s decision to approve the agreements with respect to the Fund.
The Trustees determined that the overall arrangements between the Fund and the Manager, which will serve as the Fund’s investment manager pursuant to a management agreement, and between the Manager and the Subadviser, which will serve as the Fund’s subadviser pursuant to the terms of a subadvisory agreement, are appropriate in light of the services to be performed and the fees to be charged under the agreements and such other matters as the Trustees considered relevant in the exercise of their business judgment.
The material factors and conclusions that formed the basis for the Trustees’ reaching their determinations to approve the agreements are discussed below.
PGIM QMA Strategic Alpha ETFs |
Approval of Advisory Agreements(continued)
Nature, Quality and Extent of Services
With respect to the Manager, the Board noted that it had received and considered information about the Manager at the Meeting, including information relating to the approval and renewal, as applicable, of the management agreements between the Manager and the other Prudential Retail Funds, as well as information received at other regular meetings throughout the year of the Prudential Retail Funds, regarding the nature, quality and extent of services provided by the Manager. The Board considered the services to be provided by the Manager, including but not limited to the oversight of the Subadviser, as well as the provision of fund recordkeeping, compliance and other services to the Fund. With respect to the Manager’s oversight of the Subadviser, the Board noted that the Manager’s Strategic Investment Research Group, which is a business unit of the Manager, is responsible for monitoring and reporting to the Manager’s senior management on the performance and operations of the Subadviser. The Board also noted that the Manager pays the salaries of all of the officers of the Trust and Trustees of the Trust who are affiliated persons of the Manager or Subadviser. The Board reviewed the qualifications, backgrounds and responsibilities of the Manager’s senior management responsible for the oversight of the Fund and the Subadviser, and was also provided with information pertaining to the Manager’s organizational structure, senior management, investment operations and other relevant information. The Board noted that the Manager had engaged personnel and consultants with experience in the management of exchanged-traded funds. The Board further noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer as to the Manager for services provided to other Prudential Retail Funds. The Board noted that it had concluded that it was satisfied with the nature, quality and extent of the services provided by the Manager to the other Prudential Retail Funds and determined that it was reasonable to conclude that the nature, quality and extent of services to be provided by the Manager under the management agreement for the Fund would be similar in nature to those provided under the other management agreements.
With respect to the Subadviser, the Board noted that it had received and considered information about the Subadviser at the Meeting, including information relating to the approval and renewal, as applicable, of subadvisory agreements between the Manager and the Subadviser with respect to other Prudential Retail Funds, as well as at other regular meetings throughout the year, regarding the nature, quality and extent of services provided by the Subadviser. The Board considered, among other things, the qualifications, background and experience of the Subadviser’s portfolio managers who will be responsible for theday-to-day management of the Fund’s portfolio, as well as information on the Subadviser’s organizational structure, senior management, investment operations and other relevant information. The Board also considered theSub-Adviser’s experience managing other similar investment strategies. The Board further noted that it received favorable
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compliance reports from the Fund’s Chief Compliance Officer as to the Subadviser for services provided to other Prudential Retail Funds. The Board noted that it was satisfied with the nature, quality and extent of services provided by the Subadviser with respect to the other Prudential Retail Funds served by the Subadviser and determined that it was reasonable to conclude that the nature, quality and extent of services to be provided by the Subadviser under the subadvisory agreement for the Fund would be similar in nature to those provided under the other subadvisory agreements. The Board noted that the Subadviser is affiliated with the Manager.
Performance
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, no investment performance for the Fund existed for Board review. The Fund’s strategy is a new strategy for the Subadviser. The Manager will provide information relating to performance to the Board in connection with subsequent reviews of the management agreement and subadvisory agreement.
Fee Rates
The Board considered the proposed management fees of 0.29% of the average daily value of the Fund’s investable assets to be paid by the Fund to the Manager and the proposed subadvisory fees of 0.145% of the Fund’s investable assets to be paid by the Manager to the Subadviser. The Board also considered that for purposes of calculating the proposed management and subadvisory fees, investable assets of the Fund means the Fund’s net assets plus any borrowings for investment purposes. The Board considered the nature of the management fee as a unitary fee and that the Manager would be responsible for the Fund’s expenses except for those expenses reflected in the management agreement as remaining the responsibility of the Fund. Under the Management Agreement, the Fund generally will be responsible for only paying interest and other borrowing expenses, taxes, brokerage expenses, acquired fund fees and expenses, expenses associated with shareholder meetings and proxy statements, extraordinary expenses and future12b-1 fees (if any).
The Board considered information provided by the Manager comparing the Fund’s proposed management fee rate and total expenses (including the effects of leverage) to the Lipper 15(c) Peer Group. The Board noted that the Fund’s management fee was in the first quartile and anticipated total expenses were in the first quartile of the Lipper Peer Group (first quartile being the lowest fee) based upon net assets assuming outstanding leverage.
PGIM QMA Strategic Alpha ETFs |
Approval of Advisory Agreements(continued)
The Board concluded that the proposed management fee and total expenses were reasonable in light of the services to be provided.
Profitability
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, the Board noted that there was no historical profitability information with respect to the Fund to be reviewed. The Board noted that it would review profitability information in connection with subsequent renewals of the management and subadvisory agreements.
Economies of Scale
Because the Fund had not yet commenced operations and the actual asset base of the Fund had not yet been determined, the Board noted that there was no historical information regarding economies of scale with respect to the Fund to be reviewed. The Board noted that it would review such information in connection with subsequent renewals of the management and subadvisory agreements.
Other Benefits to the Manager and the Subadviser
The Board considered potential“fall-out” or ancillary benefits anticipated to be received by the Manager and the Subadviser. The Board concluded that any potential benefits to be derived by the Manager were similar to benefits derived by the Manager in connection with its management of the other affiliated funds managed by the Manager, which are reviewed on an annual basis. The Board also concluded that any potential benefits to be derived by the Subadviser were consistent with those generally derived by subadvisers to the Prudential Retail Funds, and that those benefits are reviewed on an annual basis. The Board concluded that any potential benefits derived by the Manager and the Subadviser were consistent with the types of benefits generally derived by investment managers and subadvisers to funds.
* * *
After full consideration of these and other factors, the Board concluded that the approval of the agreements was in the best interests of the Fund.
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∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgiminvestments.com |
PROXY VOTING |
The Board of Trustees of the Fund has delegated to the Funds’ subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to each Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent12-month period ended June 30 is available on the Funds’ website and on the Securities and Exchange Commission’s website. |
TRUSTEES |
Ellen S. Alberding• Kevin J. Bannon• Scott E. Benjamin• Linda W. Bynoe• Barry H. Evans• Keith F. Hartstein• Laurie Simon Hodrick• Michael S. Hyland• Stuart S. Parker• Brian K. Reid• Grace C. Torres |
OFFICERS |
Stuart S. Parker,President•Scott E. Benjamin,Vice President• Christian J. Kelly,Treasurer and Principal Financial and Accounting Officer• Raymond A. O’Hara,Chief Legal Officer• Chad A. Earnst,Chief Compliance Officer• Dino Capasso,Deputy Chief Compliance Officer• Charles H. Smith,Anti-Money Laundering Compliance Officer• Andrew R. French,Secretary• Jonathan D. Shain,Assistant Secretary• Claudia DiGiacomo,Assistant Secretary• Diana N. Huffman,Assistant Secretary•Peter Parrella,Assistant Treasurer• Lana Lomuti,Assistant Treasurer• Linda McMullin,Assistant Treasurer• Kelly A. Coyne,Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISER | QMA LLC | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | Brown Brothers Harriman & Co. | 50 Post Office Square Boston, MA 02110 | ||
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TRANSFER AGENT | Brown Brothers Harriman & Co. | 50 Post Office Square Boston, MA 02110 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Funds carefully before investing. The prospectus and summary prospectus contain this and other information about the Funds. An investor may obtain the prospectus and summary prospectus for each Fund by visiting our website atpgiminvestments.com or by calling(800) 225-1852. The prospectus and summary prospectus for each Fund should be read carefully before investing. |
E-DELIVERY |
To receive your fund documents online, go topgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, PGIM QMA Strategic Alpha ETFs, PGIM Investments, Attn: Board of Trustees, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee by writing to the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO SCHEDULE |
Each Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The FundsForms N-Q are available on the Commission’s website atsec.gov. Beginning with reporting periods on or after March 31, 2019, Form N-PORT will replace Form N-Q. Form N-PORT will be filed with the Securities and Exchange Commission quarterly, and each Fund’s full portfolio holdings as of its first and third quarters of each fiscal year will be made publicly available 60 days after the end of each quarter. Each Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the month. |
Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
Fund | Ticker Symbol | |
PGIM QMA Strategic Alpha Large-Cap Core ETF | PQLC | |
PGIM QMA Strategic Alpha Small-Cap Growth ETF | PQSG | |
PGIM QMA Strategic Alpha Small-Cap Value ETF | PQSV | |
PGIM QMA Strategic Alpha International Equity ETF | PQIN |
ETF1002E2
Item 2 – Code of Ethics – Not required, as this is not an annual filing.
Item 3 – Audit Committee Financial Expert – Not required, as this is not an annual filing.
Item 4 – Principal Accountant Fees and Services – Not required, as this is not an annual filing.
Item 5 – Audit Committee of Listed Registrants – The Registrant is a listed issuer as defined in Rule10A-3 under the Exchange Act and has a separately-designated standing audit committee established in accordance with
Section 3(a)(58)(A) of the Exchange Act. The Registrant’s audit committee members are Kevin J. Bannon, Keith F. Hartstein, Laurie Simon Hodrick, Michael S. Hyland, Brian K. Reid.
Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form.
Item 7 – Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies – Not applicable.
Item 8 – Portfolio Managers ofClosed-End Management Investment Companies – Not applicable.
Item 9 – Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers – Not applicable.
Item 10 – Submission of Matters to a Vote of Security Holders – None.
Item 11 – Controls and Procedures
(a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. | |||
(b) | There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12 – Exhibits |
(a) | (1) | Code of Ethics – Not required, as this is not an annual filing. | ||
(2) | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as ExhibitEX-99.CERT. | |||
(3) | Any written solicitation to purchase securities under Rule23c-1. – Not applicable. | |||
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as ExhibitEX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant | PGIM ETF Trust | |
By: | /s/ Andrew R. French | |
Andrew R. French | ||
Secretary | ||
Date: | April 12, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Stuart S. Parker | |
Stuart S. Parker | ||
President and Principal Executive Officer | ||
Date: | April 12, 2019 | |
By: | /s/ Christian J. Kelly | |
Christian J. Kelly | ||
Treasurer and Principal Financial and Accounting Officer | ||
Date: | April 12, 2019 |