UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-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 |
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: | 8/31/2021 |
Date of reporting period: | 2/28/2021 |
Item 1 – Reports to Stockholders
PGIM ULTRA SHORT BOND ETF (NYSE Arca: PULS)
SEMIANNUAL REPORT
FEBRUARY 28, 2021
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
3 | ||||
4 | ||||
6 | ||||
9 |
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 views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.
The accompanying financial statements as of February 28, 2021 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. © 2021 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.
2 | Visit our website at pgim.com/investments |
Dear Shareholder,
We hope you find the semiannual report for the PGIM Ultra Short Bond ETF informative and useful. The report covers performance for the six-month period ended February 28, 2021.
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, 2021
PGIM Ultra Short Bond ETF | 3 |
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 at pgim.com/investments or by calling (800) 225-1852.
Average Annual Total Returns as of 2/28/21 (with sales charges) | ||||||
Six Months* (%) | One Year (%) | Since Inception (%) | ||||
Net Asset Value (NAV) | 0.69 | 1.37 | 2.26 (4/5/18) | |||
Market Price** | 0.63 | 1.26 | 2.25 (4/5/18) | |||
ICE BofA 3-Month T-Bill Index | ||||||
0.06 | 0.40 | 1.53 | ||||
ICE BofA USD 3-Month Deposit Offered Rate Constant Maturity Index | ||||||
0.12 | 0.73 | 1.87 |
*Not annualized
**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 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 BofA 3-Month T-Bill Index—The ICE BofA 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 BofA USD 3-Month Deposit Offered Rate Constant Maturity Index—The ICE BofA US Dollar 3-Month Deposit Offered Rate Constant Maturity Index is an unmanaged index which 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 day’s 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.
4 | Visit our website at pgim.com/investments |
ICE BOFA IS LICENSING THE BOFA INDICES “AS IS,” MAKES NO WARRANTIES REGARDING THE SAME, DOES NOT GUARANTEE THE SUITABILITY, QUALITY, ACCURACY, TIMELINESS, AND/OR COMPLETENESS OF THE ICE BOFA 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.
Investors cannot invest directly in an index. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
Credit Quality expressed as a percentage of total investments as of 2/28/21 (%) | ||||
AAA | 37.3 | |||
AA | 16.0 | |||
A | 26.8 | |||
BBB | 13.5 | |||
Not Rated | –0.5 | |||
Cash and Cash Equivalents | 6.9 | |||
Total Investments | 100.0 |
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.
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.
Distributions and Yields as of 2/28/21 | ||||||
Total Distributions Paid for Six Months ($) | SEC 30-Day Subsidized Yield* (%) | SEC 30-Day Unsubsidized Yield** (%) | ||||
0.40 | 0.85 | 0.85 |
*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 Ultra Short Bond ETF | 5 |
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 six-month period ended February 28, 2021. The example is for illustrative purposes only.
Actual Expenses
The first line in the table 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 Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table 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.
6 | Visit our website at pgim.com/investments |
PGIM Ultra Short Bond ETF | Beginning Account Value September 1, 2020 | Ending Account Value February 28, 2021 | Annualized Expense Ratio based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Actual | $ | 1,000.00 | $ | 1,006.90 | 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, 2021, and divided by the 365 days in the Fund’s fiscal year ending August 31, 2021 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
PGIM Ultra Short Bond ETF | 7 |
Schedule of Investments (unaudited)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
LONG-TERM INVESTMENTS 85.0% | ||||||||||||||||
ASSET-BACKED SECURITIES 19.9% | ||||||||||||||||
Automobile ABS 0.5% | ||||||||||||||||
Honda Auto Receivables Owner Trust, Series 2020-1, Class A3 | 1.610 | % | 04/22/24 | 5,500 | $ | 5,605,210 | ||||||||||
Collateralized Loan Obligations 19.4% | ||||||||||||||||
Adams Mill CLO Ltd. (Cayman Islands), Series 2014-1A, Class A1R, 144A, 3 Month LIBOR + 1.100% | 1.341 | (c) | 07/15/26 | 440 | 439,949 | |||||||||||
AGL Core CLO 4 Ltd. (Cayman Islands), Series 2020-4A, Class A, 144A, 3 Month LIBOR + 2.210% | 2.434 | (c) | 04/20/28 | 8,000 | 7,992,945 | |||||||||||
Allegro CLO IV Ltd. (Cayman Islands), Series 2016-1A, Class AR, 144A, 3 Month LIBOR + 1.150% | 1.391 | (c) | 01/15/30 | 6,924 | 6,919,762 | |||||||||||
Anchorage Capital CLO 7 Ltd. (Cayman Islands), Series 2015-7A, Class AR2, 144A, 3 Month LIBOR + 1.090% | 1.309 | (c) | 01/28/31 | 5,000 | 5,002,799 | |||||||||||
Anchorage Capital CLO 8 Ltd. (Cayman Islands), Series 2016-8A, Class AR, 144A, 3 Month LIBOR + 1.000% | 1.219 | (c) | 07/28/28 | 1,210 | 1,208,910 | |||||||||||
Apres Static CLO 2 Ltd. (Cayman Islands), Series 2020-1A, Class A, 144A, 3 Month LIBOR + 2.500% | 2.741 | (c) | 04/15/28 | 3,044 | 3,044,373 | |||||||||||
Atlas Senior Loan Fund III Ltd. (Cayman Islands), Series 2013-1A, Class AR, 144A, 3 Month LIBOR + 0.830% | 1.022 | (c) | 11/17/27 | 5,077 | 5,079,044 | |||||||||||
Atlas Senior Loan Fund V Ltd. (Cayman Islands), Series 2014-1A, Class AR2, 144A, 3 Month LIBOR + 1.260% | 1.483 | (c) | 07/16/29 | 4,929 | 4,919,825 | |||||||||||
Atrium XII (Cayman Islands), Series 12A, Class AR, 144A, 3 Month LIBOR + 0.830% | 1.052 | (c) | 04/22/27 | 7,854 | 7,844,900 | |||||||||||
Battalion CLO VII Ltd. (Cayman Islands), Series 2014-7A, Class A1RR, 144A, 3 Month LIBOR + 1.040% | 1.263 | (c) | 07/17/28 | 3,583 | 3,581,084 | |||||||||||
Battalion CLO X Ltd. (Cayman Islands), Series 2016-10A, Class A1R, 144A, 3 Month LIBOR + 1.250% | 1.468 | (c) | 01/24/29 | 2,500 | 2,499,992 | |||||||||||
Benefit Street Partners CLO II Ltd. (Cayman Islands), Series 2013-IIA, Class A1R2, 144A, 3 Month LIBOR + 0.870% | — | (p) | 07/15/29 | 5,000 | 5,000,540 | |||||||||||
Brookside Mill CLO Ltd. (Cayman Islands), Series 2013-1A, Class AR, 144A, 3 Month LIBOR + 0.820% | 1.043 | (c) | 01/17/28 | 4,724 | 4,714,944 | |||||||||||
Canyon CLO Ltd. (Cayman Islands), Series 2020-1A, Class A, 144A, 3 Month LIBOR + 1.920% | 2.161 | (c) | 07/15/28 | 7,547 | 7,548,474 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 9 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
ASSET-BACKED SECURITIES (Continued) | ||||||||||||||||
Collateralized Loan Obligations (cont'd.) | ||||||||||||||||
Catamaran CLO Ltd. (Cayman Islands), | ||||||||||||||||
Series 2013-1A, Class AR, 144A, 3 Month LIBOR + 0.850% | 1.063 | %(c) | 01/27/28 | 317 | $ | 316,618 | ||||||||||
Series 2014-2A, Class A1R, 144A, 3 Month LIBOR + 1.400% | 1.623 | (c) | 10/18/26 | 103 | 102,664 | |||||||||||
Cathedral Lake CLO Ltd. (Cayman Islands), Series 2016-4A, Class AR, 144A, 3 Month LIBOR + 1.250% | 1.474 | (c) | 10/20/28 | 2,750 | 2,747,217 | |||||||||||
CIFC Funding Ltd. (Cayman Islands), | ||||||||||||||||
Series 2013-3RA, Class A1, 144A, 3 Month LIBOR + 0.980% | 1.198 | (c) | 04/24/31 | 2,000 | 2,000,796 | |||||||||||
Series 2017-1A, Class AR, 144A, 3 Month LIBOR + 1.010% | 1.234 | (c) | 04/23/29 | 5,000 | 4,997,200 | |||||||||||
Crown City CLO I (Cayman Islands), Series 2020-1A, Class A1, 144A, 3 Month LIBOR + 2.050% | 2.274 | (c) | 07/20/30 | 4,500 | 4,498,164 | |||||||||||
Crown Point CLO 9 Ltd. (Cayman Islands), Series 2020-9A, Class A, 144A, 3 Month LIBOR + 2.050% | 2.284 | (c) | 07/14/32 | 1,000 | 1,000,628 | |||||||||||
Elevation CLO Ltd. (Cayman Islands), | ||||||||||||||||
Series 2014-2A, Class A1R, 144A, 3 Month LIBOR + 1.230% | 1.471 | (c) | 10/15/29 | 1,500 | 1,498,276 | |||||||||||
Series 2015-4A, Class AR, 144A, 3 Month LIBOR + 0.990% | 1.213 | (c) | 04/18/27 | 62 | 61,663 | |||||||||||
Series 2017-7A, Class A, 144A, 3 Month LIBOR + 1.220% | 1.461 | (c) | 07/15/30 | 1,708 | 1,705,168 | |||||||||||
Ellington CLO IV Ltd. (Cayman Islands), Series 2019-4A, Class A, 144A, 3 Month LIBOR + 1.840% | 2.081 | (c) | 04/15/29 | 3,080 | 3,074,195 | |||||||||||
Flagship CLO VIII Ltd. (Cayman Islands), Series 2014-8A, Class ARR, 144A, 3 Month LIBOR + 0.850% | 1.073 | (c) | 01/16/26 | 143 | 142,648 | |||||||||||
Flatiron CLO Ltd. (Cayman Islands), Series 2015-1A, Class AR, 144A, 3 Month LIBOR + 0.890% | 1.131 | (c) | 04/15/27 | 283 | 282,240 | |||||||||||
Greywolf CLO II Ltd. (Cayman Islands), Series 2013-1A, Class A1R, 144A, 3 Month LIBOR + 1.230% | 1.471 | (c) | 10/15/29 | 10,000 | 9,990,548 | |||||||||||
HPS Loan Management Ltd. (Cayman Islands), | ||||||||||||||||
Series 10A-16, Class A1R, 144A, 3 Month LIBOR + 1.140% | 1.364 | (c) | 01/20/28 | 3,971 | 3,971,227 | |||||||||||
Series 11A-17, Class AR, 144A, 3 Month LIBOR + 1.020% | 1.213 | (c) | 05/06/30 | 3,500 | 3,486,754 | |||||||||||
JMP Credit Advisors CLO IV Ltd. (Cayman Islands), Series 2017-1A, Class AR, 144A, 3 Month LIBOR + 1.280% | 1.503 | (c) | 07/17/29 | 12,068 | 12,055,128 |
See Notes to Financial Statements.
10 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
ASSET-BACKED SECURITIES (Continued) | ||||||||||||||||
Collateralized Loan Obligations (cont'd.) | ||||||||||||||||
KKR CLO Ltd. (Cayman Islands), Series 11, Class AR, 144A, 3 Month LIBOR + 1.180% | 1.421 | %(c) | 01/15/31 | 1,000 | $ | 998,112 | ||||||||||
KVK CLO Ltd. (Cayman Islands), Series 2018-1A, Class A, 144A, 3 Month LIBOR + 0.930% | 1.112 | (c) | 05/20/29 | 373 | 372,128 | |||||||||||
Limerock CLO III LLC (Cayman Islands), Series 2014-3A, Class A1R, 144A, 3 Month LIBOR + 1.200% | 1.424 | (c) | 10/20/26 | 43 | 43,127 | |||||||||||
Madison Park Funding XXX Ltd. (Cayman Islands), Series 2018-30A, Class A, 144A, 3 Month LIBOR + 0.750% | 0.991 | (c) | 04/15/29 | 7,325 | 7,313,522 | |||||||||||
Magnetite XVI Ltd. (Cayman Islands), Series 2015-16A, Class AR, 144A, 3 Month LIBOR + 0.800% | 1.023 | (c) | 01/18/28 | 2,442 | 2,441,220 | |||||||||||
Man GLG US CLO Ltd. (Cayman Islands), Series 2018-2A, Class A1R, 144A, 3 Month LIBOR + 1.240% | 1.481 | (c) | 10/15/28 | 1,993 | 1,991,763 | |||||||||||
Midocean Credit CLO V (Cayman Islands), Series 2016-5A, Class AR, 144A, 3 Month LIBOR + 1.120% | 1.343 | (c) | 07/19/28 | 8,514 | 8,512,424 | |||||||||||
Mountain View CLO Ltd. (Cayman Islands), Series 2013-1A, Class AR, 144A, 3 Month LIBOR + 1.250% | 1.474 | (c) | 10/12/30 | 468 | 467,139 | |||||||||||
Oaktree CLO Ltd. (Cayman Islands), Series 2015-1A, Class A1R, 144A, 3 Month LIBOR + 0.870% | 1.094 | (c) | 10/20/27 | 2,593 | 2,589,681 | |||||||||||
Ocean Trails CLO 8 (Cayman Islands), Series 2020-8A, Class A1, 144A, 3 Month LIBOR + 1.950% | 2.191 | (c) | 07/15/29 | 5,000 | 4,999,643 | |||||||||||
Ocean Trails CLO VI (Cayman Islands), Series 2016-6A, Class AR, 144A, 3 Month LIBOR + 1.150% | 1.391 | (c) | 07/15/28 | 3,150 | 3,148,627 | |||||||||||
OCP CLO Ltd. (Cayman Islands), Series 2017-13A, Class A1A, 144A, 3 Month LIBOR + 1.260% | 1.501 | (c) | 07/15/30 | 4,400 | 4,397,023 | |||||||||||
Octagon Investment Partners 31 LLC (Cayman Islands), Series 2017-1A, Class AR, 144A, 3 Month LIBOR + 1.050% | 1.274 | (c) | 07/20/30 | 8,000 | 7,977,970 | |||||||||||
OZLM VI Ltd. (Cayman Islands), Series 2014-6A, Class A1S, 144A, 3 Month LIBOR + 1.080% | 1.303 | (c) | 04/17/31 | 4,926 | 4,926,019 | |||||||||||
OZLM XII Ltd. (Cayman Islands), Series 2015-12A, Class A1R, 144A, 3 Month LIBOR + 1.050% | 1.255 | (c) | 04/30/27 | 212 | 211,928 | |||||||||||
OZLM XIII Ltd. (Cayman Islands), Series 2015-13A, Class A1R, 144A, 3 Month LIBOR + 1.080% | 1.285 | (c) | 07/30/27 | 263 | 262,758 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 11 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
ASSET-BACKED SECURITIES (Continued) | ||||||||||||||||
Collateralized Loan Obligations (cont'd.) | ||||||||||||||||
Palmer Square CLO Ltd. (Cayman Islands), | ||||||||||||||||
Series 2014-1A, Class A1R2, 144A, 3 Month LIBOR + 1.130% | 1.353 | %(c) | 01/17/31 | 1,250 | $ | 1,250,349 | ||||||||||
Series 2015-1A, Class A1R3, 144A, 3 Month LIBOR + 1.000% | 1.241 | (c) | 05/21/29 | 2,250 | 2,251,759 | |||||||||||
Series 2015-2A, Class A1R2, 144A, 3 Month LIBOR + 1.100% | 1.324 | (c) | 07/20/30 | 1,400 | 1,399,913 | |||||||||||
Race Point VIII CLO Ltd. (Cayman Islands), Series 2013-8A, Class AR2, 144A, 3 Month LIBOR + 1.040% | 1.222 | (c) | 02/20/30 | 9,873 | 9,873,269 | |||||||||||
Regatta Funding LP (Cayman Islands), Series 2013-2A, Class A1R2, 144A, 3 Month LIBOR + 1.250% | 1.491 | (c) | 01/15/29 | 750 | 750,177 | |||||||||||
SCOF-2 Ltd. (Cayman Islands), Series 2015-2A, Class AR, 144A, 3 Month LIBOR + 1.180% | 1.421 | (c) | 07/15/28 | 1,945 | 1,945,839 | |||||||||||
Sound Point CLO XI Ltd. (Cayman Islands), Series 2016-1A, Class AR, 144A, 3 Month LIBOR + 1.100% | 1.324 | (c) | 07/20/28 | 476 | 476,097 | |||||||||||
TCW CLO Ltd. (Cayman Islands), Series 2017-1A, Class AR, 144A, 3 Month LIBOR + 1.030% | 1.242 | (c) | 07/29/29 | 5,500 | 5,489,156 | |||||||||||
TICP CLO I Ltd. (Cayman Islands), Series 2015-1A, Class AR, 144A, 3 Month LIBOR + 0.800% | 1.024 | (c) | 07/20/27 | 320 | 318,902 | |||||||||||
TICP CLO III-2 Ltd. (Cayman Islands), Series 2018-3R, Class A, 144A, 3 Month LIBOR + 0.840% | 1.064 | (c) | 04/20/28 | 2,197 | 2,196,003 | |||||||||||
Trinitas CLO V Ltd. (Cayman Islands), Series 2016-5A, Class ARR, 144A, 3 Month LIBOR + 1.030% | — | (p) | 10/25/28 | 9,450 | 9,439,672 | |||||||||||
Venture XXI CLO Ltd. (Cayman Islands), Series 2015-21A, Class AR, 144A, 3 Month LIBOR + 0.880% | 1.121 | (c) | 07/15/27 | 803 | 802,419 | |||||||||||
Vibrant CLO V Ltd. (Cayman Islands), Series 2016-5A, Class AR, 144A, 3 Month LIBOR + 1.250% | 1.474 | (c) | 01/20/29 | 5,250 | 5,244,287 | |||||||||||
Voya CLO Ltd. (Cayman Islands), Series 2014-2A, Class A1RR, 144A, 3 Month LIBOR + 1.020% | 1.243 | (c) | 04/17/30 | 1,689 | 1,684,652 | |||||||||||
Wellfleet CLO Ltd. (Cayman Islands), | ||||||||||||||||
Series 2015-1A, Class AR3, 144A, 3 Month LIBOR + 1.280% | 1.504 | (c) | 07/20/29 | 7,945 | 7,946,539 | |||||||||||
Series 2016-2A, Class A1R, 144A, 3 Month LIBOR + 1.140% | 1.364 | (c) | 10/20/28 | 5,586 | 5,580,877 | |||||||||||
West CLO Ltd. (Cayman Islands), Series 2014-2A, Class A1AR, 144A, 3 Month LIBOR + 0.870% | 1.093 | (c) | 01/16/27 | 29 | 28,864 | |||||||||||
Westcott Park CLO Ltd. (Cayman Islands), Series 2016-1A, Class AR, 144A, 3 Month LIBOR + 1.210% | 1.434 | (c) | 07/20/28 | 6,000 | 5,994,670 |
See Notes to Financial Statements.
12 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
ASSET-BACKED SECURITIES (Continued) | ||||||||||||||||
Collateralized Loan Obligations (cont'd.) | ||||||||||||||||
York CLO-2 Ltd. (Cayman Islands), Series 2015-1A, Class AR, 144A, 3 Month LIBOR + 1.150% | 1.372 | %(c) | 01/22/31 | 10,340 | $ | 10,330,830 | ||||||||||
Zais CLO 7 Ltd. (Cayman Islands), Series 2017-2A, Class A, 144A, 3 Month LIBOR + 1.290% | 1.531 | (c) | 04/15/30 | 244 | 244,323 | |||||||||||
Zais CLO 8 Ltd. (Cayman Islands), Series 2018-1A, Class A, 144A, 3 Month LIBOR + 0.950% | 1.191 | (c) | 04/15/29 | 870 | 868,419 | |||||||||||
|
| |||||||||||||||
242,498,775 | ||||||||||||||||
|
| |||||||||||||||
TOTAL ASSET-BACKED SECURITIES | 248,103,985 | |||||||||||||||
|
| |||||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES 16.4% | ||||||||||||||||
BANK, | ||||||||||||||||
Series 2017-BNK5, Class A1 | 1.909 | 06/15/60 | 671 | 674,142 | ||||||||||||
Series 2017-BNK7, Class A1 | 1.984 | 09/15/60 | 47 | 47,448 | ||||||||||||
Series 2017-BNK9, Class A1 | 2.322 | 11/15/54 | 549 | 555,981 | ||||||||||||
Series 2018-BN14, Class A1 | 3.277 | 09/15/60 | 470 | 484,965 | ||||||||||||
Benchmark Mortgage Trust, | ||||||||||||||||
Series 2018-B1, Class A1 | 2.560 | 01/15/51 | 539 | 543,975 | ||||||||||||
Series 2018-B2, Class A2 | 3.662 | 02/15/51 | 975 | 1,017,193 | ||||||||||||
Series 2018-B3, Class A2 | 3.848 | 04/10/51 | 960 | 1,012,346 | ||||||||||||
Series 2018-B5, Class A2 | 4.077 | 07/15/51 | 800 | 855,578 | ||||||||||||
CCUBS Commercial Mortgage Trust, Series 2017-C1, Class A1 | 2.288 | (cc) | 11/15/50 | 3,395 | 3,425,578 | |||||||||||
CD Mortgage Trust, Series 2017-CD3, Class A1 | 1.965 | 02/10/50 | 31 | 31,448 | ||||||||||||
CFCRE Commercial Mortgage Trust, Series 2016-C7, Class A1 | 1.971 | 12/10/54 | 19 | 19,367 | ||||||||||||
CGMS Commercial Mortgage Trust, Series 2017-B1, Class A1 | 2.008 | 08/15/50 | 414 | 415,064 | ||||||||||||
Citigroup Commercial Mortgage Trust, | ||||||||||||||||
Series 2014-GC21, Class AAB | 3.477 | 05/10/47 | 347 | 363,305 | ||||||||||||
Series 2014-GC23, Class AAB | 3.337 | 07/10/47 | 1,001 | 1,044,679 | ||||||||||||
Series 2016-C1, Class A1 | 1.506 | 05/10/49 | 34 | 33,517 | ||||||||||||
Series 2016-P4, Class A2 | 2.450 | 07/10/49 | 10,000 | 10,034,174 | ||||||||||||
Series 2016-P5, Class A1 | 1.410 | 10/10/49 | 101 | 101,401 | ||||||||||||
Series 2016-P6, Class A1 | 1.884 | 12/10/49 | 266 | 265,993 | ||||||||||||
Series 2017-P8, Class A1 | 2.065 | 09/15/50 | 452 | 455,523 | ||||||||||||
COMM Mortgage Trust, | ||||||||||||||||
Series 2012-CR4, Class A3 | 2.853 | 10/15/45 | 2,704 | 2,778,982 | ||||||||||||
Series 2012-CR5, Class A4 | 2.771 | 12/10/45 | 4,750 | 4,901,302 | ||||||||||||
Series 2013-CR11, Class ASB | 3.660 | 08/10/50 | 641 | 666,342 | ||||||||||||
Series 2013-CR7, Class ASB | 2.739 | 03/10/46 | 361 | 368,599 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 13 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) | ||||||||||||||||
COMM Mortgage Trust, (cont'd.) | ||||||||||||||||
Series 2013-CR8, Class A4 | 3.334 | % | 06/10/46 | 2,582 | $ | 2,714,743 | ||||||||||
Series 2013-CR8, Class A5 | 3.612 | (cc) | 06/10/46 | 5,081 | 5,396,888 | |||||||||||
Series 2014-CR17, Class ASB | 3.598 | 05/10/47 | 487 | 508,855 | ||||||||||||
Series 2014-UBS2, Class ASB | 3.472 | 03/10/47 | 1,023 | 1,065,124 | ||||||||||||
Series 2015-CR22, Class A3 | 3.207 | 03/10/48 | 2,000 | 2,036,025 | ||||||||||||
Series 2015-CR23, Class ASB | 3.257 | 05/10/48 | 1,788 | 1,880,662 | ||||||||||||
Series 2015-CR24, Class ASB | 3.445 | 08/10/48 | 3,278 | 3,467,686 | ||||||||||||
Series 2015-CR27, Class A2 | 2.223 | 10/10/48 | — | (r) | 72 | |||||||||||
Series 2015-DC1, Class A2 | 2.870 | 02/10/48 | 194 | 194,243 | ||||||||||||
Series 2015-LC23, Class A2 | 3.221 | 10/10/48 | 683 | 678,842 | ||||||||||||
Series 2017-COR2, Class A1 | 2.111 | 09/10/50 | 121 | 122,296 | ||||||||||||
CSAIL Commercial Mortgage Trust, | ||||||||||||||||
Series 2015-C3, Class A2 | 3.033 | 08/15/48 | 552 | 551,644 | ||||||||||||
Series 2016-C5, Class ASB | 3.533 | 11/15/48 | 3,971 | 4,233,725 | ||||||||||||
Series 2017-C8, Class A1 | 1.930 | 06/15/50 | 797 | 801,018 | ||||||||||||
DBJPM Mortgage Trust, | ||||||||||||||||
Series 2016-C3, Class A1 | 1.502 | 08/10/49 | 999 | 1,001,089 | ||||||||||||
Series 2016-C3, Class A2 | 1.886 | 08/10/49 | 1,085 | 1,089,471 | ||||||||||||
FNMA-Aces, Series 2017-M1, Class A1 | 2.417 | (cc) | 10/25/26 | 465 | 473,472 | |||||||||||
GS Mortgage Securities Corp. Trust, Series 2021-RENT, Class A, 144A | 0.950 | (c) | 11/21/23 | 5,425 | 5,425,000 | |||||||||||
GS Mortgage Securities Trust, | ||||||||||||||||
Series 2013-GC14, Class A3 | 3.526 | 08/10/46 | 7 | 7,347 | ||||||||||||
Series 2014-GC22, Class AAB | 3.467 | 06/10/47 | 624 | 651,435 | ||||||||||||
Series 2017-GS7, Class A1 | 1.950 | 08/10/50 | 1,001 | 1,005,552 | ||||||||||||
Series 2018-GS9, Class A1 | 2.861 | 03/10/51 | 1,536 | 1,560,089 | ||||||||||||
JP Morgan Chase Commercial Mortgage Securities Trust, | ||||||||||||||||
Series 2012-C6, Class ASB | 3.144 | 05/15/45 | 960 | 973,256 | ||||||||||||
Series 2012-C8, Class A3 | 2.829 | 10/15/45 | 3,024 | 3,104,657 | ||||||||||||
Series 2016-JP2, Class ASB | 2.713 | 08/15/49 | 8,588 | 9,057,384 | ||||||||||||
JPMBB Commercial Mortgage Securities Trust, | ||||||||||||||||
Series 2013-C12, Class A4 | 3.363 | 07/15/45 | 2,904 | 3,032,201 | ||||||||||||
Series 2013-C12, Class ASB | 3.157 | 07/15/45 | 490 | 497,827 | ||||||||||||
Series 2013-C14, Class ASB | 3.761 | (cc) | 08/15/46 | 9,117 | 9,463,747 | |||||||||||
Series 2014-C18, Class A4A2, 144A | 3.794 | 02/15/47 | 5,029 | 5,351,289 | ||||||||||||
Series 2014-C25, Class ASB | 3.407 | 11/15/47 | 4,478 | 4,712,350 | ||||||||||||
JPMCC Commercial Mortgage Securities Trust, Series 2017-JP7, Class A1 | 1.969 | 09/15/50 | 347 | 348,865 | ||||||||||||
Morgan Stanley Bank of America Merrill Lynch Trust, | ||||||||||||||||
Series 2012-C6, Class A4 | 2.858 | 11/15/45 | 1,507 | 1,546,143 | ||||||||||||
Series 2013-C12, Class ASB | 3.824 | 10/15/46 | 6,483 | 6,729,037 | ||||||||||||
Series 2013-C8, Class A4 | 3.134 | 12/15/48 | 4,750 | 4,942,662 |
See Notes to Financial Statements.
14 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued) | ||||||||||||||||
Morgan Stanley Bank of America Merrill Lynch Trust, (cont'd.) | ||||||||||||||||
Series 2013-C9, Class AAB | 2.657 | % | 05/15/46 | 576 | $ | 587,149 | ||||||||||
Series 2014-C19, Class ASB | 3.326 | 12/15/47 | 6,730 | 7,063,846 | ||||||||||||
Series 2015-C23, Class ASB | 3.398 | 07/15/50 | 2,243 | 2,358,513 | ||||||||||||
Series 2016-C31, Class A1 | 1.511 | 11/15/49 | 24 | 23,727 | ||||||||||||
Series 2017-C34, Class A1 | 2.109 | 11/15/52 | 171 | 171,641 | ||||||||||||
Morgan Stanley Capital I Trust, | ||||||||||||||||
Series 2016-BNK2, Class A1 | 1.424 | 11/15/49 | 33 | 33,018 | ||||||||||||
Series 2016-UB12, Class A2 | 2.932 | 12/15/49 | 5,310 | 5,374,786 | ||||||||||||
Series 2018-H3, Class A2 | 3.997 | 07/15/51 | 1,000 | 1,066,723 | ||||||||||||
One New York Plaza Trust, Series 2020-1NYP, Class A, 144A | 1.062 | (c) | 01/15/26 | 4,925 | 4,949,565 | |||||||||||
UBS Commercial Mortgage Trust, | ||||||||||||||||
Series 2012-C1, Class A3 | 3.400 | 05/10/45 | 1,356 | 1,376,417 | ||||||||||||
Series 2017-C4, Class A1 | 2.129 | 10/15/50 | 66 | 66,670 | ||||||||||||
Series 2017-C5, Class A1 | 2.139 | 11/15/50 | 441 | 444,713 | ||||||||||||
Series 2017-C6, Class A1 | 2.344 | 12/15/50 | 4,125 | 4,171,679 | ||||||||||||
Series 2018-C11, Class A1 | 3.211 | 06/15/51 | 16 | 16,164 | ||||||||||||
Series 2018-C8, Class A1 | 2.659 | 02/15/51 | 1,578 | 1,600,438 | ||||||||||||
Series 2018-C8, Class A2 | 3.713 | 02/15/51 | 1,050 | 1,098,277 | ||||||||||||
UBS-Barclays Commercial Mortgage Trust, | ||||||||||||||||
Series 2012-C3, Class A4 | 3.091 | 08/10/49 | 9,214 | 9,506,581 | ||||||||||||
Series 2012-C4, Class A5 | 2.850 | 12/10/45 | 10,000 | 10,335,748 | ||||||||||||
Series 2013-C5, Class A4 | 3.185 | 03/10/46 | 8,311 | 8,639,381 | ||||||||||||
Series 2013-C6, Class A4 | 3.244 | 04/10/46 | 16,009 | 16,689,337 | ||||||||||||
Wells Fargo Commercial Mortgage Trust, | ||||||||||||||||
Series 2013-LC12, Class ASB | 3.928 | (cc) | 07/15/46 | 5,562 | 5,812,451 | |||||||||||
Series 2015-NXS2, Class A2 | 3.020 | 07/15/58 | 210 | 214,765 | ||||||||||||
Series 2015-P2, Class A2B | 4.685 | (cc) | 12/15/48 | 1,143 | 1,170,904 | |||||||||||
Series 2016-BNK1, Class A1 | 1.321 | 08/15/49 | 29 | 29,429 | ||||||||||||
Series 2016-C34, Class ASB | 2.911 | 06/15/49 | 5,000 | 5,287,578 | ||||||||||||
Series 2016-NXS6, Class A1 | 1.417 | 11/15/49 | 800 | 800,506 | ||||||||||||
Series 2017-C42, Class A1 | 2.338 | 12/15/50 | 877 | 885,944 | ||||||||||||
|
| |||||||||||||||
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES |
| 204,497,548 | ||||||||||||||
|
| |||||||||||||||
CORPORATE BONDS 47.2% | ||||||||||||||||
Advertising 0.7% | ||||||||||||||||
Interpublic Group of Cos, Inc., Sr. Unsec’d. Notes | 3.750 | 10/01/21 | 8,496 | 8,663,676 | ||||||||||||
Aerospace & Defense 0.1% | ||||||||||||||||
Lockheed Martin Corp., Sr. Unsec’d. Notes | 3.350 | 09/15/21 | 1,556 | 1,581,325 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 15 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Agriculture 0.3% | ||||||||||||||||
Cargill, Inc., Sr. Unsec’d. Notes, 144A | 1.375 | % | 07/23/23 | 1,000 | $ | 1,023,759 | ||||||||||
Philip Morris International, Inc., Sr. Unsec’d. Notes | 1.125 | 05/01/23 | 3,000 | 3,050,578 | ||||||||||||
|
| |||||||||||||||
4,074,337 | ||||||||||||||||
Airlines 0.7% | ||||||||||||||||
Southwest Airlines Co., Sr. Unsec’d. Notes(a) | 4.750 | 05/04/23 | 7,500 | 8,155,894 | ||||||||||||
Apparel 0.6% | ||||||||||||||||
VF Corp., Sr. Unsec’d. Notes | 2.050 | 04/23/22 | 8,000 | 8,153,966 | ||||||||||||
Auto Manufacturers 2.8% | ||||||||||||||||
American Honda Finance Corp., Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.290% | 0.520 | (c) | 12/10/21 | 750 | 750,310 | |||||||||||
BMW US Capital LLC, | ||||||||||||||||
Gtd. Notes, 144A | 1.850 | 09/15/21 | 1,668 | 1,679,702 | ||||||||||||
Gtd. Notes, 144A | 3.800 | 04/06/23 | 4,000 | 4,271,612 | ||||||||||||
Gtd. Notes, 144A, 3 Month LIBOR + 0.410% | 0.634 | (c) | 04/12/21 | 893 | 893,445 | |||||||||||
Gtd. Notes, 144A, 3 Month LIBOR + 0.500% | 0.698 | (c) | 08/13/21 | 1,465 | 1,467,881 | |||||||||||
Daimler Finance North America LLC, Sr. Unsec’d. Notes, 144A | 0.750 | 03/01/24 | 13,500 | 13,522,355 | ||||||||||||
Harley-Davidson Financial Services, Inc., Gtd. Notes, 144A, 3 Month LIBOR + 0.940% | 1.168 | (c) | 03/02/21 | 2,855 | 2,855,000 | |||||||||||
Toyota Motor Credit Corp., Sr. Unsec’d. Notes, MTN, SOFR + 0.300% | 0.330 | (c) | 06/13/22 | 10,000 | 10,007,598 | |||||||||||
|
| |||||||||||||||
35,447,903 | ||||||||||||||||
Banks 11.9% | ||||||||||||||||
ABN AMRO Bank NV (Netherlands), Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.570% | 0.760 | (c) | 08/27/21 | 500 | 501,277 | |||||||||||
Banco del Estado de Chile (Chile), Sr. Unsec’d. Notes, 144A | 3.875 | 02/08/22 | 4,045 | 4,166,940 | ||||||||||||
Bank of America Corp., Sr. Unsec’d. Notes, MTN | 5.000 | 05/13/21 | 1,225 | 1,236,513 | ||||||||||||
Bank of Montreal (Canada), Sr. Unsec’d. Notes, 3 Month LIBOR + 0.460% | 0.685 | (c) | 04/13/21 | 275 | 275,162 | |||||||||||
Bank of Nova Scotia (Canada), Sr. Unsec’d. Notes | 1.625 | 05/01/23 | 6,000 | 6,162,254 | ||||||||||||
Banque Federative du Credit Mutuel SA (France), Sr. Unsec’d. Notes, 144A | 0.650 | 02/27/24 | 7,250 | 7,249,587 | ||||||||||||
Barclays Bank PLC (United Kingdom), Sr. Unsec’d. Notes | 1.700 | 05/12/22 | 10,000 | 10,152,290 | ||||||||||||
Canadian Imperial Bank of Commerce (Canada), Sr. Unsec’d. Notes, SOFR + 0.800% | 0.856 | (c) | 03/17/23 | 6,000 | 6,068,738 |
See Notes to Financial Statements.
16 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Banks (cont'd.) | ||||||||||||||||
Commonwealth Bank of Australia (Australia), Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.700% | 0.930 | %(c) | 03/10/22 | 5,000 | $ | 5,032,484 | ||||||||||
Cooperatieve Rabobank UA (Netherlands), | ||||||||||||||||
Sr. Unsec’d. Notes | 3.125 | 04/26/21 | 2,000 | 2,008,821 | ||||||||||||
Sr. Unsec’d. Notes, SOFR + 0.300% | 0.342 | (c) | 01/12/24 | 5,500 | 5,505,575 | |||||||||||
Credit Suisse AG (Switzerland), | ||||||||||||||||
Sr. Unsec’d. Notes, SOFR + 0.390% | 0.424 | (c) | 02/02/24 | 3,750 | 3,758,661 | |||||||||||
Sr. Unsec’d. Notes, SOFR + 0.450% | 0.483 | (c) | 02/04/22 | 5,000 | 5,014,457 | |||||||||||
DIB Sukuk Ltd. (Cayman Islands), Sr. Unsec’d. Notes | 3.664 | 02/14/22 | 2,400 | 2,462,225 | ||||||||||||
Fifth Third Bank NA, Sr. Unsec’d. Notes, BKNT | 1.800 | 01/30/23 | 5,000 | 5,139,589 | ||||||||||||
Goldman Sachs Group, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 01/24/22 | 3,000 | 3,145,666 | ||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 1.000% | 1.217 | (c) | 03/15/21 | 925 | 925,237 | |||||||||||
Sr. Unsec’d. Notes, SOFR + 0.538% | 0.627 | (cc) | 11/17/23 | 5,000 | 5,015,360 | |||||||||||
Huntington National Bank, Sr. Unsec’d. Notes | 1.800 | 02/03/23 | 6,000 | 6,157,242 | ||||||||||||
Industrial & Commercial Bank of China Ltd. (China), Sr. Unsec’d. Notes | 2.452 | 10/20/21 | 1,864 | 1,883,077 | ||||||||||||
Lloyds Banking Group PLC (United Kingdom), Sr. Unsec’d. Notes, 3 Month LIBOR + 0.800% | 1.039 | (c) | 06/21/21 | 1,400 | 1,403,226 | |||||||||||
Mitsubishi UFJ Financial Group, Inc. (Japan), Sr. Unsec’d. Notes | 2.623 | 07/18/22 | 1,000 | 1,031,017 | ||||||||||||
Morgan Stanley, | ||||||||||||||||
Sr. Unsec’d. Notes | 2.750 | 05/19/22 | 3,000 | 3,090,686 | ||||||||||||
Sr. Unsec’d. Notes, MTN | 2.625 | 11/17/21 | 3,000 | 3,050,571 | ||||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 1.400% | 1.618 | (c) | 10/24/23 | 4,750 | 4,844,374 | |||||||||||
National Securities Clearing Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 0.400 | 12/07/23 | 3,750 | 3,754,110 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 1.200 | 04/23/23 | 3,000 | 3,051,285 | ||||||||||||
PNC Bank NA, Sr. Unsec’d. Notes, BKNT, 3 Month LIBOR + 0.325% | 0.501 | (c) | 02/24/23 | 3,000 | 3,007,778 | |||||||||||
RHB Bank Bhd (Malaysia), Sr. Unsec’d. Notes, EMTN | 2.503 | 10/06/21 | 1,300 | 1,314,202 | ||||||||||||
Royal Bank of Canada (Canada), Sr. Unsec’d. Notes, GMTN, 3 Month LIBOR + 0.730% | 0.935 | (c) | 02/01/22 | 5,050 | 5,082,357 | |||||||||||
Santander UK PLC (United Kingdom), Sr. Unsec’d. Notes, 3 Month LIBOR + 0.660% | 0.854 | (c) | 11/15/21 | 1,000 | 1,004,395 | |||||||||||
Skysea International Capital Management Ltd. (British Virgin Islands), Gtd. Notes, EMTN | 4.875 | 12/07/21 | 4,300 | 4,433,183 | ||||||||||||
Toronto-Dominion Bank (The) (Canada), Sr. Unsec’d. Notes, MTN, SOFR + 0.480% | 0.514 | (c) | 01/27/23 | 7,138 | 7,177,213 | |||||||||||
Truist Bank, | ||||||||||||||||
Sr. Unsec’d. Notes, BKNT, 3 Month LIBOR + 0.590% | 0.782 | (c) | 05/17/22 | 3,000 | 3,016,732 | |||||||||||
Sr. Unsec’d. Notes, BKNT, SOFR + 0.730% | 0.792 | (c) | 03/09/23 | 2,000 | 2,020,321 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 17 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Banks (cont'd.) | ||||||||||||||||
UBS AG (Switzerland), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 0.450 | % | 02/09/24 | 3,000 | $ | 2,994,586 | ||||||||||
Sr. Unsec’d. Notes, 144A, SOFR + 0.360% | 0.391 | (c) | 02/09/24 | 4,500 | 4,506,705 | |||||||||||
US Bank NA, Sr. Unsec’d. Notes, BKNT, 3 Month LIBOR + 0.440% | 0.615 | (c) | 05/23/22 | 3,700 | 3,716,825 | |||||||||||
Wells Fargo Bank N.A., Sr. Unsec’d. Notes, BKNT, | 2.082 | (cc) | 09/09/22 | 8,000 | 8,072,951 | |||||||||||
|
| |||||||||||||||
148,433,672 | ||||||||||||||||
Beverages 0.7% | ||||||||||||||||
Keurig Dr Pepper, Inc., Gtd. Notes | 3.551 | 05/25/21 | 3,259 | 3,283,440 | ||||||||||||
PepsiCo, Inc., Sr. Unsec’d. Notes | 0.400 | 10/07/23 | 5,500 | 5,520,564 | ||||||||||||
|
| |||||||||||||||
8,804,004 | ||||||||||||||||
Biotechnology 0.5% | ||||||||||||||||
Gilead Sciences, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 0.750 | 09/29/23 | 3,000 | 3,005,412 | ||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.520% | 0.771 | (c) | 09/29/23 | 3,000 | 3,005,820 | |||||||||||
|
| |||||||||||||||
6,011,232 | ||||||||||||||||
Chemicals 0.3% | ||||||||||||||||
Air Liquide Finance SA (France), Gtd. Notes, 144A | 2.250 | 09/27/23 | 1,000 | 1,043,501 | ||||||||||||
Nutrien Ltd. (Canada), Sr. Unsec’d. Notes | 1.900 | 05/13/23 | 3,000 | 3,093,927 | ||||||||||||
|
| |||||||||||||||
4,137,428 | ||||||||||||||||
Coal 0.3% | ||||||||||||||||
Korea Resources Corp. (South Korea), Sr. Unsec’d. Notes | 3.000 | 04/24/22 | 3,200 | 3,282,676 | ||||||||||||
Commercial Services 0.7% | ||||||||||||||||
PayPal Holdings, Inc., Sr. Unsec’d. Notes | 1.350 | 06/01/23 | 5,000 | 5,101,634 | ||||||||||||
Verisk Analytics, Inc., Sr. Unsec’d. Notes | 5.800 | 05/01/21 | 4,000 | 4,035,421 | ||||||||||||
|
| |||||||||||||||
9,137,055 | ||||||||||||||||
Computers 1.0% | ||||||||||||||||
Apple, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 1.700 | 09/11/22 | 5,000 | 5,110,828 | ||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.500% | 0.691 | (c) | 02/09/22 | 2,163 | 2,173,398 |
See Notes to Financial Statements.
18 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Computers (cont'd.) | ||||||||||||||||
Hewlett Packard Enterprise Co., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.680% | 0.900 | %(c) | 03/12/21 | 5,000 | $ | 5,000,893 | ||||||||||
|
| |||||||||||||||
12,285,119 | ||||||||||||||||
Diversified Financial Services 2.2% | ||||||||||||||||
American Express Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.700 | 11/05/21 | 8,000 | 8,162,549 | ||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.525% | 0.717 | (c) | 05/17/21 | 2,000 | 2,001,246 | |||||||||||
Aviation Capital Group LLC, Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.950% | 1.141 | (c) | 06/01/21 | 1,000 | 999,114 | |||||||||||
BOC Aviation Ltd. (Singapore), Sr. Unsec’d. Notes, 144A | 2.375 | 09/15/21 | 5,000 | 5,025,618 | ||||||||||||
Capital One Bank USA NA, Subordinated | 3.375 | 02/15/23 | 4,000 | 4,223,312 | ||||||||||||
Charles Schwab Corp., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.320% | 0.502 | (c) | 05/21/21 | 350 | 350,135 | |||||||||||
NTT Finance Corp. (Japan), Gtd. Notes, 144A | 0.583 | 03/01/24 | 6,500 | 6,493,426 | ||||||||||||
|
| |||||||||||||||
27,255,400 | ||||||||||||||||
Electric 3.3% | ||||||||||||||||
Abu Dhabi National Energy Co. PJSC (United Arab Emirates), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.875 | 12/13/21 | 2,000 | 2,081,953 | ||||||||||||
Sr. Unsec’d. Notes, EMTN | 3.625 | 06/22/21 | 2,500 | 2,521,977 | ||||||||||||
American Electric Power Co., Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.650 | 12/01/21 | 4,000 | 4,099,911 | ||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.480% | 0.685 | (c) | 11/01/23 | 3,000 | 3,005,221 | |||||||||||
CenterPoint Energy, Inc., Sr. Unsec’d. Notes | 3.600 | 11/01/21 | 750 | 766,354 | ||||||||||||
DTE Energy Co., Sr. Unsec’d. Notes | 2.250 | 11/01/22 | 8,000 | 8,243,800 | ||||||||||||
Duke Energy Corp., Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.500% | 0.698 | (c) | 05/14/21 | 250 | 250,228 | |||||||||||
Enel Finance International NV (Netherlands), Gtd. Notes, 144A | 2.750 | 04/06/23 | 2,940 | 3,068,424 | ||||||||||||
Entergy Louisiana LLC | 0.620 | 11/17/23 | 4,250 | 4,257,661 | ||||||||||||
NextEra Energy Capital Holdings, Inc., | ||||||||||||||||
Gtd. Notes | 2.900 | 04/01/22 | 2,500 | 2,569,586 | ||||||||||||
Gtd. Notes, 3 Month LIBOR + 0.480% | 0.672 | (c) | 05/04/21 | 3,925 | 3,928,103 | |||||||||||
PPL Electric Utilities Corp. | 2.500 | 09/01/22 | 4,800 | 4,927,447 | ||||||||||||
Saudi Electricity Global Sukuk Co. (Cayman Islands), Sr. Unsec’d. Notes | 4.211 | 04/03/22 | 1,800 | 1,871,246 | ||||||||||||
|
| |||||||||||||||
41,591,911 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 19 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Food 2.2% | ||||||||||||||||
McCormick & Co., Inc., Sr. Unsec’d. Notes | 2.700 | % | 08/15/22 | 7,685 | $ | 7,925,848 | ||||||||||
Mondelez International Holdings Netherlands BV (Netherlands), Gtd. Notes, 144A | 2.000 | 10/28/21 | 2,000 | 2,018,992 | ||||||||||||
Mondelez International, Inc., Sr. Unsec’d. Notes | 0.625 | 07/01/22 | 8,000 | 8,032,339 | ||||||||||||
Nestle Holdings, Inc., Gtd. Notes, 144A | 0.375 | 01/15/24 | 5,000 | 4,984,646 | ||||||||||||
Tyson Foods, Inc., Sr. Unsec’d. Notes | 2.250 | 08/23/21 | 4,775 | 4,811,300 | ||||||||||||
|
| |||||||||||||||
27,773,125 | ||||||||||||||||
Forest Products & Paper 0.6% | ||||||||||||||||
Georgia-Pacific LLC, Sr. Unsec’d. Notes, 144A | 3.734 | 07/15/23 | 7,000 | 7,489,004 | ||||||||||||
Healthcare-Products 0.4% | ||||||||||||||||
Stryker Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 0.600 | 12/01/23 | 1,250 | 1,252,798 | ||||||||||||
Sr. Unsec’d. Notes | 2.625 | 03/15/21 | 4,000 | 4,003,425 | ||||||||||||
|
| |||||||||||||||
5,256,223 | ||||||||||||||||
Holding Companies-Diversified 0.2% | ||||||||||||||||
Swire Pacific MTN Financing Ltd. (Cayman Islands), Gtd. Notes, EMTN | 4.500 | 02/28/22 | 2,000 | 2,066,230 | ||||||||||||
Household Products/Wares 0.6% | ||||||||||||||||
Reckitt Benckiser Treasury Services PLC (United Kingdom), Gtd. Notes, 144A, 3 Month LIBOR + 0.560% | 0.798 | (c) | 06/24/22 | 8,000 | 8,046,782 | |||||||||||
Insurance 3.5% | ||||||||||||||||
AIA Group Ltd. (Hong Kong), Sr. Unsec’d. Notes, 144A, 3 Month LIBOR + 0.520% | 0.759 | (c) | 09/20/21 | 600 | 600,005 | |||||||||||
Berkshire Hathaway, Inc., Sr. Unsec’d. Notes | 2.750 | 03/15/23 | 4,853 | 5,071,922 | ||||||||||||
Jackson National Life Global Funding, Sr. Sec’d. Notes, 144A, 3 Month LIBOR + 0.480% | 0.701 | (c) | 06/11/21 | 7,000 | 7,008,685 | |||||||||||
Metropolitan Life Global Funding I, | ||||||||||||||||
Sec’d. Notes, 144A | 3.375 | 01/11/22 | 1,250 | 1,283,461 | ||||||||||||
Sec’d. Notes, 144A | 3.450 | 10/09/21 | 750 | 764,638 | ||||||||||||
New York Life Global Funding, | ||||||||||||||||
Sec’d. Notes, 144A | 2.900 | 01/17/24 | 4,190 | 4,478,657 | ||||||||||||
Sec’d. Notes, 144A, 3 Month LIBOR + 0.320% | 0.513 | (c) | 08/06/21 | 500 | 500,610 | |||||||||||
Sr. Sec’d. Notes, 144A, 3 Month LIBOR + 0.440% | 0.664 | (c) | 07/12/22 | 3,000 | 3,014,315 | |||||||||||
Pacific Life Global Funding II, Sr. Sec’d. Notes, 144A | 0.500 | 09/23/23 | 4,750 | 4,760,488 | ||||||||||||
Principal Life Global Funding II, Sec’d. Notes, 144A | 0.500 | 01/08/24 | 7,250 | 7,254,158 |
See Notes to Financial Statements.
20 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Insurance (cont'd.) | ||||||||||||||||
Protective Life Global Funding, | ||||||||||||||||
Sec’d. Notes, 144A | 0.631 | % | 10/13/23 | 4,250 | $ | 4,274,765 | ||||||||||
Sr. Sec’d. Notes, 144A | 0.473 | 01/12/24 | 5,000 | 4,983,067 | ||||||||||||
|
| |||||||||||||||
43,994,771 | ||||||||||||||||
Machinery-Constructions & Mining 0.8% | ||||||||||||||||
Caterpillar Financial Services Corp., Sr. Unsec’d. Notes, MTN | 0.450 | 09/14/23 | 10,000 | 10,014,262 | ||||||||||||
Machinery-Diversified 0.6% | ||||||||||||||||
John Deere Capital Corp., Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.260% | 0.490 | (c) | 09/10/21 | 400 | 400,493 | |||||||||||
Otis Worldwide Corp., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.450% | 0.688 | (c) | 04/05/23 | 6,700 | 6,699,145 | |||||||||||
|
| |||||||||||||||
7,099,638 | ||||||||||||||||
Media 0.4% | ||||||||||||||||
Cox Communications, Inc., Sr. Unsec’d. Notes, 144A | 2.950 | 06/30/23 | 1,500 | 1,573,537 | ||||||||||||
Walt Disney Co., Gtd. Notes, 3 Month LIBOR + 0.390% | 0.581 | (c) | 09/01/22 | 3,000 | 3,015,404 | |||||||||||
|
| |||||||||||||||
4,588,941 | ||||||||||||||||
Miscellaneous Manufacturer 0.2% | ||||||||||||||||
Textron, Inc., Sr. Unsec’d. Notes | 3.650 | 03/01/21 | 3,000 | 3,000,000 | ||||||||||||
Oil & Gas 2.8% | ||||||||||||||||
Exxon Mobil Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 1.571 | 04/15/23 | 4,000 | 4,102,997 | ||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.330% | 0.524 | (c) | 08/16/22 | 4,000 | 4,015,917 | |||||||||||
Korea National Oil Corp. (South Korea), Sr. Unsec’d. Notes, 144A | 2.125 | 04/14/21 | 3,000 | 3,006,012 | ||||||||||||
Phillips 66, | ||||||||||||||||
Gtd. Notes | 0.900 | 02/15/24 | 4,000 | 4,004,438 | ||||||||||||
Gtd. Notes | 3.700 | 04/06/23 | 4,800 | 5,113,994 | ||||||||||||
Pioneer Natural Resources Co., Sr. Unsec’d. Notes | 0.750 | 01/15/24 | 4,250 | 4,250,704 | ||||||||||||
Saudi Arabian Oil Co. (Saudi Arabia), Sr. Unsec’d. Notes, 144A | 2.750 | 04/16/22 | 1,980 | 2,027,592 | ||||||||||||
Valero Energy Corp., Sr. Unsec’d. Notes | 2.700 | 04/15/23 | 8,000 | 8,340,405 | ||||||||||||
|
| |||||||||||||||
34,862,059 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 21 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Pharmaceuticals 3.3% | ||||||||||||||||
AbbVie, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.375 | % | 11/14/21 | 3,730 | $ | 3,809,647 | ||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.650% | 0.832 | (c) | 11/21/22 | 3,000 | 3,023,090 | |||||||||||
Bayer US Finance II LLC, Gtd. Notes, 144A | 3.500 | 06/25/21 | 1,800 | 1,813,093 | ||||||||||||
Bristol-Myers Squibb Co., | ||||||||||||||||
Sr. Unsec’d. Notes | 0.537 | 11/13/23 | 10,000 | 10,010,290 | ||||||||||||
Sr. Unsec’d. Notes, 3 Month LIBOR + 0.380% | 0.574 | (c) | 05/16/22 | 2,000 | 2,007,651 | |||||||||||
Cigna Corp., | ||||||||||||||||
Gtd. Notes | 3.400 | 09/17/21 | 6,400 | 6,510,224 | ||||||||||||
Gtd. Notes | 3.900 | 02/15/22 | 4,020 | 4,153,239 | ||||||||||||
GlaxoSmithKline Capital PLC (United Kingdom), | ||||||||||||||||
Gtd. Notes | 0.534 | 10/01/23 | 6,500 | 6,518,889 | ||||||||||||
Gtd. Notes, 3 Month LIBOR + 0.350% | 0.544 | (c) | 05/14/21 | 3,295 | 3,297,127 | |||||||||||
|
| |||||||||||||||
41,143,250 | ||||||||||||||||
Pipelines 0.1% | ||||||||||||||||
Enterprise Products Operating LLC, Gtd. Notes | 3.500 | 02/01/22 | 750 | 771,723 | ||||||||||||
Real Estate 0.6% | ||||||||||||||||
Ontario Teachers’ Cadillac Fairview Properties Trust (Canada), Sr. Unsec’d. Notes, 144A | 3.125 | 03/20/22 | 6,775 | 6,956,262 | ||||||||||||
Real Estate Investment Trusts (REITs) 1.1% | ||||||||||||||||
ERP Operating LP, Sr. Unsec’d. Notes | 4.625 | 12/15/21 | 7,605 | 7,777,765 | ||||||||||||
Kimco Realty Corp., Sr. Unsec’d. Notes | 3.400 | 11/01/22 | 5,935 | 6,195,578 | ||||||||||||
|
| |||||||||||||||
13,973,343 | ||||||||||||||||
Retail 1.1% | ||||||||||||||||
7-Eleven, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 0.625 | 02/10/23 | 1,750 | 1,752,475 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 0.800 | 02/10/24 | 2,250 | 2,251,738 | ||||||||||||
AutoZone, Inc., Sr. Unsec’d. Notes | 3.700 | 04/15/22 | 3,000 | 3,086,706 | ||||||||||||
Home Depot, Inc., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.310% | 0.501 | (c) | 03/01/22 | 1,500 | 1,503,869 | |||||||||||
McDonald’s Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, MTN | 2.625 | 01/15/22 | 2,193 | 2,237,840 | ||||||||||||
Sr. Unsec’d. Notes, MTN, 3 Month LIBOR + 0.430% | 0.649 | (c) | 10/28/21 | 1,900 | 1,904,608 | |||||||||||
Starbucks Corp., Sr. Unsec’d. Notes | 1.300 | 05/07/22 | 1,000 | 1,011,245 | ||||||||||||
Walmart, Inc., Sr. Unsec’d. Notes | 3.125 | 06/23/21 | 500 | 504,569 | ||||||||||||
|
| |||||||||||||||
14,253,050 |
See Notes to Financial Statements.
22 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Savings & Loans 0.8% | ||||||||||||||||
Nationwide Building Society (United Kingdom), Sr. Unsec’d. Notes, 144A | 0.550 | % | 01/22/24 | 9,750 | $ | 9,732,618 | ||||||||||
Semiconductors 0.4% | ||||||||||||||||
Intel Corp., Sr. Unsec’d. Notes, 3 Month LIBOR + 0.350% | 0.553 | (c) | 05/11/22 | 5,000 | 5,017,441 | |||||||||||
Software 0.6% | ||||||||||||||||
Fidelity National Information Services, Inc., Sr. Unsec’d. Notes | 0.600 | 03/01/24 | 5,750 | 5,744,990 | ||||||||||||
Infor, Inc., Sr. Unsec’d. Notes, 144A | 1.450 | 07/15/23 | 1,200 | 1,220,480 | ||||||||||||
|
| |||||||||||||||
6,965,470 | ||||||||||||||||
Telecommunications 0.3% | ||||||||||||||||
Rogers Communications, Inc. (Canada), Gtd. Notes, 3 Month LIBOR + 0.600% | 0.836 | (c) | 03/22/22 | 4,200 | 4,221,705 | |||||||||||
Transportation 0.5% | ||||||||||||||||
FedEx Corp., Gtd. Notes | 3.400 | 01/14/22 | 3,000 | 3,081,217 | ||||||||||||
Ryder System, Inc., Sr. Unsec’d. Notes, MTN | 2.875 | 06/01/22 | 3,000 | 3,085,500 | ||||||||||||
|
| |||||||||||||||
6,166,717 | ||||||||||||||||
|
| |||||||||||||||
TOTAL CORPORATE BONDS |
| 590,408,212 | ||||||||||||||
|
| |||||||||||||||
CERTIFICATES OF DEPOSIT 1.0% | ||||||||||||||||
Banks 1.0% | ||||||||||||||||
Bank of Montreal (Canada), 3 Month LIBOR + 0.110% | 0.339 | (c) | 12/13/21 | 5,000 | 5,004,304 | |||||||||||
Credit Agricole Corporate & Investment Bank (France), 3 Month LIBOR + 0.480% | 0.709 | (c) | 09/17/21 | 920 | 922,390 | |||||||||||
Royal Bank of Canada (Canada), 3 Month LIBOR + 0.110% | 0.329 | (c) | 12/16/21 | 3,000 | 3,002,373 | |||||||||||
Sumitomo Mitsui Banking Corp. (Japan), | ||||||||||||||||
3 Month LIBOR + 0.350% | 0.574 | (c) | 07/12/21 | 1,000 | 1,001,309 | |||||||||||
3 Month LIBOR + 0.355% | 0.549 | (c) | 05/13/21 | 3,000 | 3,002,249 | |||||||||||
|
| |||||||||||||||
TOTAL CERTIFICATES OF DEPOSIT |
| 12,932,625 | ||||||||||||||
|
| |||||||||||||||
SOVEREIGN BONDS 0.5% | ||||||||||||||||
Indonesia Government International Bond (Indonesia), Sr. Unsec’d. Notes, 144A | 4.875 | 05/05/21 | 1,750 | 1,763,204 |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 23 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Lithuania Government International Bond (Lithuania), Sr. Unsec’d. Notes | 6.125 | % | 03/09/21 | 2,300 | $ | 2,300,050 | ||||||||||
Qatar Government International Bond (Qatar), Sr. Unsec’d. Notes, 144A | 2.375 | 06/02/21 | 2,500 | 2,509,402 | ||||||||||||
|
| |||||||||||||||
TOTAL SOVEREIGN BONDS |
| 6,572,656 | ||||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS |
| 1,062,515,026 | ||||||||||||||
|
| |||||||||||||||
Shares | ||||||||||||||||
SHORT-TERM INVESTMENTS 17.4% | ||||||||||||||||
AFFILIATED MUTUAL FUNDS 8.9% | ||||||||||||||||
PGIM Core Ultra Short Bond Fund(wa) |
| 106,150,297 | 106,150,297 | |||||||||||||
PGIM Institutional Money Market Fund (cost $5,024,792; includes $5,024,266 of cash collateral for securities on loan)(b)(wa) |
| 5,026,328 | 5,023,815 | |||||||||||||
|
| |||||||||||||||
TOTAL AFFILIATED MUTUAL FUNDS |
| 111,174,112 | ||||||||||||||
|
| |||||||||||||||
Principal | ||||||||||||||||
TIME DEPOSIT 0.0% | ||||||||||||||||
Brown Brothers Harriman & Co. (Cayman Islands) | 0.005 | 03/01/21 | 7 | 7,201 | ||||||||||||
|
| |||||||||||||||
CERTIFICATES OF DEPOSIT 1.6% | ||||||||||||||||
Banks 1.6% | ||||||||||||||||
Lloyds Bank Corporate Markets PLC | 0.380 | (c) | 11/26/21 | 10,000 | 10,010,371 | |||||||||||
Natixis SA (France), 3 Month LIBOR + 0.130% | 0.360 | (c) | 12/09/21 | 10,000 | 10,008,455 | |||||||||||
|
| |||||||||||||||
TOTAL CERTIFICATES OF DEPOSIT |
| 20,018,826 | ||||||||||||||
|
| |||||||||||||||
COMMERCIAL PAPER 5.9% | ||||||||||||||||
AT&T, Inc. 144A | 0.381 | (s) | 11/16/21 | 10,000 | 9,977,134 | |||||||||||
BAT International Finance PLC (United Kingdom) 144A | 0.300 | (s) | 03/10/21 | 10,000 | 9,998,483 | |||||||||||
Eni Finance USA, Inc. 144A | 0.380 | (s) | 03/19/21 | 5,000 | 4,999,516 | |||||||||||
Glencore Funding LLC 144A | 0.320 | (s) | 03/19/21 | 10,000 | 9,998,308 | |||||||||||
HSBC Bank PLC (United Kingdom) 144A | 0.359 | (c) | 09/17/21 | 5,000 | 5,002,706 |
See Notes to Financial Statements.
24 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
COMMERCIAL PAPER (Continued) | ||||||||||||||||
HSBC USA, Inc. 144A | 0.462 | %(s) | 12/10/21 | 6,000 | $ | 5,983,115 | ||||||||||
Societe Generale SA (France) 144A | 0.390 | (c) | 12/13/21 | 10,000 | 10,005,475 | |||||||||||
Toronto-Dominion Bank (The) (Canada) 144A | 0.322 | (c) | 12/03/21 | 3,000 | 3,001,805 | |||||||||||
UBS AG (United Kingdom) 144A | 0.304 | (c) | 10/12/21 | 5,000 | 5,000,919 | |||||||||||
Volkswagen Group of America Finance LLC 144A | 0.523 | (s) | 10/25/21 | 7,000 | 6,974,929 | |||||||||||
VW Credit, Inc. 144A | 0.250 | (s) | 03/03/21 | 3,000 | 2,999,938 | |||||||||||
|
| |||||||||||||||
TOTAL COMMERCIAL PAPER |
| 73,942,328 | ||||||||||||||
|
| |||||||||||||||
CORPORATE NOTES 1.0% | ||||||||||||||||
Biotechnology 0.2% | ||||||||||||||||
Gilead Sciences, Inc., 3 Month LIBOR + 0.150% | 0.379 | (c) | 09/17/21 | 1,750 | 1,751,081 | |||||||||||
Electric 0.8% | ||||||||||||||||
Southern California Edison Co., 3 Month LIBOR + 0.270% | 0.501 | (c) | 12/03/21 | 10,000 | 10,007,672 | |||||||||||
|
| |||||||||||||||
TOTAL CORPORATE NOTES |
| 11,758,753 | ||||||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS |
| 216,901,220 | ||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 102.4% |
| 1,279,416,246 | ||||||||||||||
Liabilities in excess of other assets (2.4)% |
| (30,092,620 | ) | |||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% |
| $ | 1,249,323,626 | |||||||||||||
|
|
The | following abbreviations are used in the semi-annual report: |
(A)—Annual payment frequency for swaps
(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.
BKNT—Bank Note
CLO—Collateralized Loan Obligation
EMTN—Euro Medium Term Note
FEDL01—1 Day Overnight FED Funds Effective Rate
GMTN—Global Medium Term Note
LIBOR—London Interbank Offered Rate
MTN—Medium Term Note
SOFR—Secured Overnight Financing Rate Data
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $4,998,616; cash collateral of $5,024,266 (included in liabilities) was received with which the Fund |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 25 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(c) | Variable rate instrument. The interest rate shown reflects the rate in effect at February 28, 2021. |
(cc) | Variable rate instrument. The rate shown is based on the latest available information as of February 28, 2021. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(p) | Represents a security with a delayed settlement and therefore the interest rate is not available until settlement date which is after the period end. |
(r) | Principal or notional amount is less than $500 par. |
(s) | Represents zero coupon bond. Rate represents yield to maturity at purchase date. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and the PGIM Institutional Money Market Fund, if applicable. |
Futures contracts outstanding at February 28, 2021:
Number of contracts | Type | Expiration Date | Current Notional Amount | Value / Unrealized Appreciation (Depreciation) | ||||||||||||
Short Positions: | ||||||||||||||||
44 | 2 Year U.S. Treasury Notes | Jun. 2021 | $ | 9,713,688 | $ | 7,526 | ||||||||||
|
|
Interest rate swap agreements outstanding at February 28, 2021:
Notional | Termination Date | Fixed Rate | Floating Rate | Value at Trade Date | Value at February 28, 2021 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
Centrally cleared swap agreements: | ||||||||||||||||||||||||
37,080 | 05/09/21 | 2.855%(S) | 3 Month LIBOR(1)(Q) | $ | (66,620 | ) | $ | (528,638 | ) | $ | (462,018 | ) | ||||||||||||
44,290 | 03/11/21 | 2.850%(S) | 3 Month LIBOR(1)(Q) | (11,748 | ) | (623,416 | ) | (611,668 | ) | |||||||||||||||
20,295 | 07/27/21 | 2.929%(S) | 3 Month LIBOR(1)(Q) | (76,904 | ) | (284,093 | ) | (207,189 | ) | |||||||||||||||
14,930 | 10/04/21 | 3.046%(S) | 3 Month LIBOR(1)(Q) | (76,710 | ) | (437,145 | ) | (360,435 | ) | |||||||||||||||
26,525 | 01/11/22 | 2.672%(S) | 3 Month LIBOR(1)(Q) | (166,097 | ) | (665,596 | ) | (499,499 | ) | |||||||||||||||
24,945 | 04/01/22 | 2.265%(S) | 3 Month LIBOR(1)(Q) | (127,654 | ) | (791,190 | ) | (663,536 | ) | |||||||||||||||
11,000 | 04/12/22 | 2.357%(S) | 3 Month LIBOR(1)(Q) | (88,938 | ) | (362,279 | ) | (273,341 | ) | |||||||||||||||
26,765 | 10/02/21 | 1.898%(S) | 3 Month LIBOR(1)(Q) | (31,215 | ) | (477,242 | ) | (446,027 | ) | |||||||||||||||
3,250 | 06/15/22 | 1.873%(S) | 3 Month LIBOR(1)(Q) | 13,698 | (82,356 | ) | (96,054 | ) | ||||||||||||||||
22,000 | 08/22/22 | 1.421%(S) | 3 Month LIBOR(1)(Q) | (14,690 | ) | (405,495 | ) | (390,805 | ) | |||||||||||||||
19,000 | 09/03/22 | 1.919%(S) | 3 Month LIBOR(1)(Q) | (113,615 | ) | (666,558 | ) | (552,943 | ) | |||||||||||||||
25,000 | 01/30/23 | 1.467%(S) | 3 Month LIBOR(1)(Q) | (15,952 | ) | (623,934 | ) | (607,982 | ) | |||||||||||||||
9,900 | 02/12/22 | 1.420%(S) | 3 Month LIBOR(1)(Q) | 1,368 | (123,652 | ) | (125,020 | ) | ||||||||||||||||
7,500 | 05/11/22 | 2.300%(S) | FEDL01(1)(A) | (148,722 | ) | (337,669 | ) | (188,947 | ) |
See Notes to Financial Statements.
26 |
Notional | Termination Date | Fixed Rate | Floating Rate | Value at Trade Date | Value at February 28, 2021 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
2,000 | 12/10/22 | 0.362%(S) | FEDL01(1)(A) | $ | 22 | $ | (10,487 | ) | $ | (10,509 | ) | |||||||||||||
8,000 | 07/02/22 | (0.001)%(S) | FEDL01(1)(A) | 112 | 14,981 | 14,869 | ||||||||||||||||||
5,000 | 04/13/23 | (0.013)%(S) | FEDL01(1)(A) | 124 | 19,451 | 19,327 | ||||||||||||||||||
7,000 | 01/14/23 | (0.006)%(S) | FEDL01(1)(A) | 124 | 16,918 | 16,794 | ||||||||||||||||||
8,560 | 05/11/23 | 2.250%(S) | FEDL01(1)(A) | (463,866 | ) | (500,932 | ) | (37,066 | ) | |||||||||||||||
8,750 | 02/04/24 | 0.133%(S) | FEDL01(1)(A) | 9,997 | 35,251 | 25,254 | ||||||||||||||||||
19,500 | 03/01/24 | 0.230%(S) | FEDL01(1)(A) | 24,188 | 31,821 | 7,633 | ||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
$ | (1,353,098 | ) | $ | (6,802,260 | ) | $ | (5,449,162 | ) | ||||||||||||||||
|
|
|
|
|
|
(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, including pending settlement for closed positions, 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. | $ | 2,022,000 | $ | — |
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.
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 27 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
The following is a summary of the inputs used as of February 28, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Asset-Backed Securities | ||||||||||||
Automobile ABS | $ | — | $ | 5,605,210 | $ | — | ||||||
Collateralized Loan Obligations | — | 242,498,775 | — | |||||||||
Commercial Mortgage-Backed Securities | — | 204,497,548 | — | |||||||||
Corporate Bonds | — | 590,408,212 | — | |||||||||
Certificates of Deposit | — | 32,951,451 | — | |||||||||
Sovereign Bonds | — | 6,572,656 | — | |||||||||
Affiliated Mutual Funds | 111,174,112 | — | — | |||||||||
Time Deposit | — | 7,201 | — | |||||||||
Commercial Paper | — | 73,942,328 | — | |||||||||
Corporate Notes | — | 11,758,753 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 111,174,112 | $ | 1,168,242,134 | $ | — | ||||||
|
|
|
|
|
| |||||||
Other Financial Instruments* | ||||||||||||
Assets | ||||||||||||
Futures Contracts | $ | 7,526 | $ | — | $ | — | ||||||
Centrally Cleared Interest Rate Swap Agreements | — | 83,877 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 7,526 | $ | 83,877 | $ | — | ||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
Centrally Cleared Interest Rate Swap Agreements | $ | — | $ | (5,533,039 | ) | $ | — | |||||
|
|
|
|
|
| |||||||
Total | $ | — | $ | (5,533,039 | ) | $ | — | |||||
|
|
|
|
|
|
* | 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, 2021 were as follows:
Collateralized Loan Obligations | 19.4 | % | ||
Commercial Mortgage-Backed Securities | 16.4 | |||
Banks | 14.5 | |||
Affiliated Mutual Fund (0.4% represents investments purchased with collateral from securities on loan) | 8.9 | |||
Commercial Paper | 5.9 | |||
Electric | 4.1 | |||
Insurance | 3.5 | |||
Pharmaceuticals | 3.3 | |||
Auto Manufacturers | 2.8 | |||
Oil & Gas | 2.8 | |||
Food | 2.2 | |||
Diversified Financial Services | 2.2 | |||
Retail | 1.1 | |||
Real Estate Investment Trusts (REITs) | 1.1 | |||
Computers | 1.0 | |||
Machinery-Constructions & Mining | 0.8 | |||
Savings & Loans | 0.8 | |||
Commercial Services | 0.7 | |||
Beverages | 0.7 | |||
Advertising | 0.7 | |||
Airlines | 0.7 | |||
Biotechnology | 0.7 | |||
Apparel | 0.6 | |||
Household Products/Wares | 0.6 | |||
Forest Products & Paper | 0.6 | |||
Machinery-Diversified | 0.6 | |||
Software | 0.6 | |||
Real Estate | 0.6 | |||
Sovereign Bonds | 0.5 | |||
Transportation | 0.5 | |||
Automobile ABS | 0.5 | |||
Healthcare-Products | 0.4 | |||
Semiconductors | 0.4 | |||
Media | 0.4 | |||
Telecommunications | 0.3 | |||
Chemicals | 0.3 | |||
Agriculture | 0.3 | |||
Coal | 0.3 | |||
Miscellaneous Manufacturer | 0.2 | |||
Holding Companies-Diversified | 0.2 | |||
Aerospace & Defense | 0.1 | |||
Pipelines | 0.1 | |||
Time Deposit | 0.0 | * | ||
|
| |||
102.4 | ||||
Liabilities in excess of other assets | (2.4 | ) | ||
|
| |||
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. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. 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, 2021
Fair values of derivative instruments as of February 28, 2021 as presented in the Statement of Assets and Liabilities:
Derivatives not accounted | Asset Derivatives | Liability Derivatives | ||||||||||
Statement of | Fair Value | Statement of | Fair Value | |||||||||
Interest rate contracts | Due from/to broker—variation margin futures* | $ | 7,526 | Due from/to broker—variation margin futures* | $ | — | ||||||
Interest rate contracts | Due from/to broker—variation margin swaps* | 83,877 | Due from/to broker—variation margin swaps* | (5,533,039 | ) | |||||||
|
|
|
| |||||||||
$ | 91,403 | $ | (5,533,039 | ) | ||||||||
|
|
|
|
* | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and 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, 2021 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | ||||||||
Derivatives not accounted for as hedging | Futures | Swaps | ||||||
Interest rate contracts | $ | (7,435 | ) | $ | (2,748,639 | ) | ||
|
|
|
|
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||||||
Derivatives not accounted for as hedging | Futures | Swaps | ||||||
Interest rate contracts | $ | 12,439 | $ | 2,750,563 | ||||
|
|
|
|
For the period ended February 28, 2021 the Fund’s average volume of derivative activities is as follows:
Futures Positions(1) | Futures Contracts— Short Positions(1) | Interest Rate Swap Agreements(1) | ||||||||
$ | — | $ | 11,558,544 | $ | 363,198,333 |
(1) | Notional Amount in USD. |
See Notes to Financial Statements.
30 |
Average volume is based on average quarter end balances as noted for the six months ended February 28, 2021.
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions, where the legal right to set-off exists, is presented in the summary below:
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||||||||||
Securities on Loan | $ | 4,998,616 | $ | ($4,998,616 | ) | $ | — | |||||||
|
|
|
|
|
|
(1) | Collateral amount disclosed by the Fund is limited to the market value of the financial instruments/transactions. |
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 31 |
Statement of Assets & Liabilities (unaudited)
as of February 28, 2021
Assets | ||||
Investments at value, including securities on loan of $4,998,616: | ||||
Unaffiliated investments (cost $1,160,398,640) | $ | 1,168,242,134 | ||
Affiliated investments (cost $111,175,089) | 111,174,112 | |||
Cash | 3 | |||
Interest and dividends receivable | 3,806,758 | |||
Deposit with broker for centrally cleared/exchange-traded derivatives | 2,022,000 | |||
Other assets | 344 | |||
|
| |||
Total Assets | 1,285,245,351 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 30,722,307 | |||
Payable to broker for collateral for securities on loan | 5,024,266 | |||
Management fee payable | 140,448 | |||
Due to broker—variation margin swaps | 31,954 | |||
Due to broker—variation margin futures | 2,750 | |||
|
| |||
Total Liabilities | 35,921,725 | |||
|
| |||
Net Assets | $ | 1,249,323,626 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 25,050 | ||
Paid-in capital in excess of par | 1,257,176,678 | |||
Total distributable earnings (loss) | (7,878,102 | ) | ||
|
| |||
Net assets, February 28, 2021 | $ | 1,249,323,626 | ||
|
| |||
Net asset value, offering price and redemption price per share, | $ | 49.87 | ||
|
|
See Notes to Financial Statements.
32 |
Statement of Operations (unaudited)
Six Months Ended February 28, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 9,131,358 | ||
Affiliated dividend income | 51,153 | |||
Income from securities lending, net (including affiliated income of $2,858) | 2,858 | |||
|
| |||
Total income | 9,185,369 | |||
|
| |||
Expenses | ||||
Management fee | 843,955 | |||
|
| |||
Total expenses | 843,955 | |||
|
| |||
Net investment income (loss) | 8,341,414 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(26)) | 1,077,173 | |||
Futures transactions | (7,435 | ) | ||
Swap agreement transactions | (2,748,639 | ) | ||
|
| |||
(1,678,901 | ) | |||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $(977)) | (1,690,672 | ) | ||
Futures | 12,439 | |||
Swap agreements | 2,750,563 | |||
|
| |||
1,072,330 | ||||
|
| |||
Net gain (loss) on investment transactions | (606,571 | ) | ||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 7,734,843 | ||
|
|
See Notes to Financial Statements.
PGIM Ultra Short Bond ETF | 33 |
Statements of Changes in Net Assets
Six Months Ended February 28, 2021 (unaudited) | Year Ended August 31, 2020 | |||||||
Increase (Decrease) in Net Assets |
| |||||||
Operations |
| |||||||
Net investment income (loss) | $ | 8,341,414 | $ | 18,720,058 | ||||
Net realized gain (loss) on investments | (1,678,901 | ) | (8,313,008 | ) | ||||
Net change in unrealized appreciation (depreciation) on investments | 1,072,330 | 1,943,730 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 7,734,843 | 12,350,780 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | (9,251,382 | ) | (19,849,756 | ) | ||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 277,024,962 | 901,617,907 | ||||||
Cost of shares purchased | (66,072,967 | ) | (417,220,526 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund share transactions | 210,951,995 | 484,397,381 | ||||||
|
|
|
| |||||
Total increase (decrease) | 209,435,456 | 476,898,405 | ||||||
Net Assets: | ||||||||
Beginning of period | 1,039,888,170 | 562,989,765 | ||||||
|
|
|
| |||||
End of period | $ | 1,249,323,626 | $ | 1,039,888,170 | ||||
|
|
|
|
See Notes to Financial Statements.
34 |
Notes to Financial Statements (unaudited)
1. Organization
PGIM ETF Trust (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (“1940 Act”). The Trust was organized as a Delaware statutory trust on October 23, 2017 and currently consists of six separate series: PGIM Ultra Short Bond ETF, PGIM Active High Yield Bond ETF, PGIM QMA Strategic Alpha Large-Cap Core ETF, PGIM QMA Strategic Alpha Small-Cap Growth ETF, PGIM QMA Strategic Alpha Small-Cap Value ETF and PGIM QMA Strategic Alpha International Equity ETF. Each series operates as an exchange-traded fund.
These financial statements relate only to PGIM Ultra Short Bond ETF (the “Fund”). The Fund is classified as a diversified fund for purposes of the 1940 Act.
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.
2. 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 is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). 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 as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. 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. 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. A record of the Valuation Committee’s actions is subject to the Board’s review, at its first quarterly meeting following the quarter in which such actions take place.
PGIM Ultra Short Bond ETF | 35 |
Notes to Financial Statements (unaudited) (continued)
��
For the fiscal reporting year 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 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.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, 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 in open-end funds (other than exchange-traded 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.
36 |
OTC and centrally cleared derivative instruments are generally classified as Level 2 in the fair value hierarchy. Such derivative instruments are typically valued using the market approach and/or income approach which generally involves obtaining data from an approved independent third-party vendor source. The Fund utilizes the market approach when quoted prices in broker-dealer markets are available but also includes consideration of alternative valuation approaches, including the income approach. In the absence of reliable market quotations, the income approach is typically utilized for purposes of valuing derivatives such as interest rate swaps based on a discounted cash flow analysis whereby the value of the instrument is equal to the present value of its future cash inflows or outflows. Such analysis includes projecting future cash flows and determining the discount rate (including the present value factors that affect the discount rate) used to discount the future cash flows. In addition, the third-party vendors’ valuation techniques used to derive the evaluated derivative price is based on evaluating observable inputs, including but not limited to, underlying asset prices, indices, spreads, interest rates and exchange rates. Certain derivatives may be classified as Level 3 when valued using the market approach by obtaining a single broker quote or when utilizing unobservable inputs in the income approach. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
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. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
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. 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.
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
PGIM Ultra Short Bond ETF | 37 |
Notes to Financial Statements (unaudited) (continued)
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.
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.
Swap Agreements: The Fund entered 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 a 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. The cash amounts pledged for swaps contracts are considered restricted cash and are included in “Due from broker-variation margin swaps” and “Deposit with broker for centrally cleared/exchange-traded derivatives” in the Statement of Assets and Liabilities.
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 in the normal course of pursuing its investment objective. 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.
Master Netting Arrangements: The Trust, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a
38 |
portion of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based upon the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
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 the ex-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
PGIM Ultra Short Bond ETF | 39 |
Notes to Financial Statements (unaudited) (continued)
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 pay dividends from net investment income monthly and distributions from net realized capital and currency gains, if any, 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 the ex-date. Permanent GAAP/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-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.
3. Agreements
Pursuant to a management agreement with the Trust on behalf of the Fund (the Management Agreement), PGIM Investments manages each Fund’s investment operations and administers its business affairs. PGIM Investments is also responsible for supervising the Fund’s subadviser.
Pursuant to the management agreement relating to the Fund, there is a unitary fee structure for the fund whereby PGIM Investments is responsible for substantially all expenses of the Fund, except taxes, brokerage expenses, interest expenses, distribution fees or expenses, expenses incident to shareholder meetings and extraordinary expenses. The Fund may also pay for any costs or expenses of investing in other funds. For more information on the unitary management fee structure please refer to the Fund’s Statement of Additional Information.
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 contractually agreed, beginning from the inception of the Fund, to waive any management fees it receives from the Fund in an amount equal to the subadvisory fees paid by the Fund to the PGIM Institutional Money Market Fund due to the Fund’s investment of its excess overnight cash in the PGIM Institutional Money Market Fund. This waiver will remain in effect for as long as the Fund remains invested or intends to invest in the PGIM Institutional Money Market Fund.
40 |
The Manager has entered into a subadvisory agreement (Subadvisory Agreement) with PGIM, Inc. and PGIM Limited, the Fund’s investment subadvisers (collectively, the “subadviser”). The Manager pays for the services of the subadviser.
Brown Brothers Harriman & Co. (“BBH”) serves as the Custodian, Transfer Agent, Administrative Agent and Securities Lending Agent for the Trust. The Manager is responsible for compensating BBH under the Custodian and Administrative and Transfer Agency Agreements. As securities lending agent, BBH is responsible for marketing to approved borrowers available securities from the Fund’s portfolio. BBH receives as compensation for its services a portion of the amount earned by the Fund for lending securities.
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. 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 Investments, PGIM, Inc., PGIM Limited and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
The Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-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. For the period ended February 28, 2021, no 17a- 7 transactions were entered into by the Fund.
5. 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, 2021, were $450,049,041 and $80,413,270 respectively.
PGIM Ultra Short Bond ETF | 41 |
Notes to Financial Statements (unaudited) (continued)
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the period ended February 28, 2021, is presented as follows:
Value, Beginning | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||
Short-Term Investments—Affiliated Mutual Funds: |
| |||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund(1)(wa) |
| |||||||||||||||||||||||||||
$91,427,244 | $ | 417,777,053 | $ | 403,054,000 | $ | — | $ | — | $ | 106,150,297 | 106,150,297 | $ | 51,153 | |||||||||||||||
PGIM Institutional Money Market Fund(1)(b)(wa) |
| |||||||||||||||||||||||||||
— | 5,285,235 | 260,417 | (977 | ) | (26 | ) | 5,023,815 | 5,026,328 | 2,858 | (2) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$91,427,244 | $ | 423,062,288 | $ | 403,314,417 | $ | (977 | ) | $ | (26 | ) | $ | 111,174,112 | 111,176,625 | $ | 54,011 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
(b) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of February 28, 2021 were as follows:
Tax Basis | $ | 1,274,945,905 | ||
|
| |||
Gross Unrealized Appreciation | 8,346,026 | |||
Gross Unrealized Depreciation | (9,317,321 | ) | ||
|
| |||
Net Unrealized Depreciation | $ | (971,295 | ) | |
|
|
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Fund had a capital loss carryforward as of August 31, 2020 of $8,018,000 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. Since tax authorities can examine previously filed tax returns, the Fund’s U.S. federal and state tax returns for each of the three fiscal years up to the most recent fiscal year ended August 31, 2020 are subject to such review.
42 |
7. 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 aggregations of a specified number of shares called a “Creation Unit”.
An Authorized Participant is a member or participant of a clearing agency registered with the SEC, which has a written agreement with a Fund or one of its service providers that allows the Authorized Participant to place orders for the purchase and redemption of Creation Units.
A creation transaction, which is subject to acceptance by the Distributor and a Fund, generally takes place when an Authorized Participant deposits into a Fund a designated portfolio of securities, assets or other positions (a “creation basket”, and an amount of cash (including any cash representing the value of substituted securities, assets or other positions), if any, which together approximate the holdings of the Fund in exchange for a specified number of Creation Units. Similarly, shares can be redeemed only in Creation Units, generally for a designated portfolio of securities, assets or other propositions (the “redemption basket”) held by a Fund and an amount of cash (including any portion of such securities for which cash may be substituted). The Fund may, in certain circumstances, offer Creation Units partially or solely for cash. Except when aggregated in Creation Units, shares are not redeemable by the Fund. Creation and redemption baskets may differ and the Fund may accept “custom baskets.”
A Creation Unit consists of 25,000 shares of the Fund. Authorized Participants generally are required to pay a fixed creation transaction fee and/or a fixed redemption transaction fee, as applicable, for each transaction in a Creation Unit regardless of the number of Creation Units created or redeemed on that day. The Fund may adjust the transaction fee from time to time. An additional charge or a variable charge may be applied to certain creation and redemption transactions, including non-standard orders and whole or partial cash purchases or redemptions when deemed appropriate. For the period ended February 28, 2021, these fixed transaction fees are being paid by PGIM Investments. For the reporting period ended February 28, 2021, PGIM Investments paid $14,250 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, 2021, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Fund | Number of Shares | Percentage of Outstanding Shares | ||
PGIM Ultra Short Bond ETF | 2,593,659 | 10.4% |
PGIM Ultra Short Bond ETF | 43 |
Notes to Financial Statements (unaudited) (continued)
At the reporting period end, the number of shareholders holding greater than 5% of the Fund is as follows:
Affiliated | Unaffiliated | |||||||
Fund | Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | ||||
PGIM Ultra Short Bond ETF | 1 | 10.3% | 4 | 49.4% |
Transactions in shares of beneficial interest were as follows:
Reporting period ended February 28, 2021:
Shares | Amount | |||||||
Shares sold | 5,550,000 | $ | 277,024,962 | |||||
Shares purchased | (1,325,000 | ) | (66,072,967 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 4,225,000 | $ | 210,951,995 | |||||
|
|
|
|
Reporting period ended August 31, 2020:
Shares | Amount | |||||||
Shares sold | 18,025,000 | $ | 901,617,907 | |||||
Shares purchased | (8,425,000 | ) | (417,220,526 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 9,600,000 | $ | 484,397,381 | |||||
|
|
|
|
8. | Borrowings |
The Trust, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating 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 table below provides details of the current SCA in effect at the reporting period-end as well as the prior SCA.
Current SCA | Prior SCA | |||
Term of Commitment | 10/2/2020 – 9/30/2021 | 10/3/2019 – 10/1/2020 | ||
Total Commitment | $1,200,000,000 | $1,222,500,000* | ||
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | 0.15% | ||
Annualized Interest Rate on Borrowings | 1.30% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent | 1.20% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
* | Effective March 31, 2020, the SCA’s total commitment was increased from $900,000,000 to $1,162,500,000 and subsequently, effective April 7, 2020 was increased to $1,222,500,000. |
44 |
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 Participating Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended February 28, 2021.
9. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
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: As with credit risk, market risk and interest rate 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 lose income.
Credit Risk: This is the risk that the issuer, the guarantor or the insurer of a fixed income security, or the counterparty to a contract, may be unable or unwilling to make timely principal and interest payments, or to otherwise honor its obligations. Additionally, fixed income securities could lose value due to a loss of confidence in the ability of the issuer, guarantor, insurer or counterparty to pay back debt. The longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk.
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
PGIM Ultra Short Bond ETF | 45 |
Notes to Financial Statements (unaudited) (continued)
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, many over-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.
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.
Interest Rate Risk: The value of your 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 debt securities. For example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk”. 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 lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
LIBOR Risk: Many financial instruments use or may use a floating rate based on the London Interbank Offered Rate, or “LIBOR,” which is the offered rate for short-term Eurodollar deposits between major international banks. Over the course of the last several
46 |
years, global regulators have indicated an intent to phase out the use of LIBOR and similar interbank offering rates (IBOR). On November 30, 2020, the administrator of LIBOR announced a delay in the phase out of a majority of the U.S. dollar LIBOR publications until June 30, 2023, with the remainder of LIBOR publications to still end at the end of 2021. There still remains uncertainty regarding the nature of any replacement rates for LIBOR and the other IBORs as well as around fallback approaches for instruments extending beyond the any phase-out of these reference rates. The lack of consensus around replacement rates and the uncertainty of the phase out of LIBOR and other IBORs may result in increased volatility in corporate or governmental debt, bank loans, derivatives and other instruments invested in by a Fund as well as loan facilities used by a Fund. As such, the potential impact of a transition away from LIBOR on a Fund or the financial instruments in which a Fund invests cannot yet be determined. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR and the other IBORs as benchmarks could deteriorate during the transition period, these effects could begin to be experienced by the end of 2021 and beyond until the anticipated discontinuance date in 2023 for the majority of the LIBOR rates.
Liquidity Risk: Liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. 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 cannot be readily sold at the desired time or price, the Fund may have to accept a lower price or may not be able to sell the instrument at all. The reduction in dealer market-making capacity in the fixed income markets that has occurred in recent years also has the potential to reduce the 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 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.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and
PGIM Ultra Short Bond ETF | 47 |
Notes to Financial Statements (unaudited) (continued)
government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally.
The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
Mortgage-Backed and Asset-Backed Securities Risks: Mortgage-backed and asset-backed securities tend to increase in value less than other debt securities when interest rates decline, but are subject to similar risk of decline in market value during periods of rising interest rates. The values of mortgage-backed and asset-backed securities become more volatile as interest rates rise. In a period of declining interest rates, the Fund may be required to reinvest more frequent prepayments on mortgage-backed and asset-backed securities in lower-yielding investments.
10. Recent Accounting Pronouncement and Regulatory Developments
In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, which provides optional guidance for applying GAAP to contract modifications, hedging relationships and other transactions affected by the reference rate reform if certain criteria are met. ASU 2020-04 is elective and is effective on March 12, 2020 through December 31, 2022. At this time, management is evaluating the implications of certain provisions of the ASU and any impact on the financial statement disclosures has not yet been determined.
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule is scheduled to take effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
48 |
Financial Highlights
Six Months Ended | Year Ended August 31, 2020 | Year Ended August 31, 2019 | April 5, 2018(e) through 2018 | |||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $49.93 | $50.15 | $50.12 | $50.00 | ||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.37 | 1.06 | 1.40 | 0.53 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.03 | ) | (0.08 | ) | (0.02 | ) | 0.01 | |||||||||||||||||||||
Total from investment operations | 0.34 | 0.98 | 1.38 | 0.54 | ||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.40 | ) | (1.20 | ) | (1.35 | ) | (0.42 | ) | ||||||||||||||||||||
Net asset value, end of period | $49.87 | $49.93 | $50.15 | $50.12 | ||||||||||||||||||||||||
Total Return(b): | 0.69% | 1.99% | 2.80% | 1.08% | ||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $1,249,324 | $1,039,888 | $562,990 | $52,627 | ||||||||||||||||||||||||
Average net assets (000) | $1,134,598 | $883,274 | $246,678 | $33,209 | ||||||||||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.15% | (d) | 0.15% | 0.15% | 0.15% | (d) | ||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.15% | (d) | 0.15% | 0.15% | 0.15% | (d) | ||||||||||||||||||||||
Net investment income (loss) | 1.48% | (d) | 2.12% | 2.77% | 2.58% | (d) | ||||||||||||||||||||||
Portfolio turnover rate(f) | 8% | 47% | 7% | 145% |
(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.
PGIM Ultra Short Bond ETF | 49 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
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 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-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 • 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 • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Jon Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Patrick McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
SUBADVISER | PGIM Fixed Income | 655 Broad Street Newark, NJ 07102 | ||
PGIM Limited | Grand Buildings, 1-3 Strand Trafalgar Square London, WC2N 5HR United Kingdom | |||
| ||||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
CUSTODIAN/TRANSFER AGENT | Brown Brothers Harriman & Co. | 50 Post Office Square Boston, MA 02110 | ||
| ||||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue | ||
| ||||
FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
|
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 at pgim.com/investments 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 to pgim.com/investments/resource/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 that Trustee at 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 as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
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, 2021
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
3 | ||||
4 | ||||
6 | ||||
9 |
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 views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.
The accompanying financial statements as of February 28, 2021 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. © 2021 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.
2 | Visit our website at pgim.com/investments |
Dear Shareholder,
We hope you find the semiannual report for the PGIM Active High Yield Bond ETF informative and useful. The report covers performance for the six-month period ended February 28, 2021.
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, 2021
PGIM Active High Yield Bond ETF | 3 |
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 at pgim.com/investments or by calling (800) 225-1852.
Average Annual Total Returns as of 2/28/21 | ||||||
Six Months* (%) | One Year (%) | Since Inception (%) | ||||
Net Asset Value (NAV) | 7.01 | 10.75 | 8.46 (9/24/18) | |||
Market Price** | 6.37 | 9.43 | 8.44 (9/24/18) | |||
Bloomberg Barclays US High Yield Very Liquid Index | 5.05 | 8.38 | 6.57 |
*Not annualized
**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 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 (the Index)—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 Index 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.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
4 | Visit our website at pgim.com/investments |
Credit Quality expressed as a percentage of total investments as of 2/28/21 (%) | ||||
BBB | 3.0 | |||
BB | 46.8 | |||
B | 34.6 | |||
CCC | 12.2 | |||
CC | 0.2 | |||
D | 0.2 | |||
Not Rated | 1.8 | |||
Cash/Cash Equivalents | 1.2 | |||
Total Investments | 100.0 |
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. The Not Rated category consists of securities that have not been rated by a NRSRO. These rating agencies are independent and are widely used. Credit ratings are subject to change.
Distributions and Yields as of 2/28/21 | ||||||
Total Distributions Paid for Six Months ($) | SEC 30-Day Subsidized Yield* (%) | SEC 30-Day Unsubsidized Yield** (%) | ||||
1.78 | 4.03 | 4.03 |
*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 | 5 |
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 six-month period ended February 28, 2021. The example is for illustrative purposes only.
Actual Expenses
The first line in the table 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 Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the table 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.
6 | Visit our website at pgim.com/investments |
PGIM Active High Yield Bond ETF | Beginning Account Value September 1, 2020 | Ending Account Value February 28, 2021 | Annualized Expense Ratio based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Actual Hypothetical | $ $ | 1,000.00 1,000.00 |
| $ $ | 1,070.10 1,022.17 |
| | 0.53 0.53 | % % | $ $ | 2.72 2.66 |
|
* 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, 2021, and divided by the 365 days in the Fund’s fiscal year ending August 31, 2021 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
PGIM Active High Yield Bond ETF | 7 |
Schedule of Investments (unaudited)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
LONG-TERM INVESTMENTS 97.5% | ||||||||||||||||
BANK LOANS 3.7% | ||||||||||||||||
Computers 0.1% | ||||||||||||||||
Everi Payments, Inc., Term Loan, 1 Month LIBOR + 10.500% | 11.500 | %(c) | 05/09/24 | 25 | $ | 25,870 | ||||||||||
Diversified/Conglomerate Services 0.5% | ||||||||||||||||
Intrado Corp., Initial Term B Loan, 3 Month LIBOR + 3.500% | 5.000 | (c) | 10/10/24 | 299 | 294,084 | |||||||||||
Electric 0.0% | ||||||||||||||||
Tech Data Corp., Non-FILO Term Loan, 1 Month LIBOR + 3.500% | 3.615 | (c) | 06/30/25 | 25 | 25,100 | |||||||||||
Electric & Gas Marketing 0.3% | ||||||||||||||||
Heritage Power LLC, Term Loan, 3 Month LIBOR + 6.000% | 7.000 | (c) | 07/30/26 | 148 | 141,944 | |||||||||||
Entertainment 0.2% | ||||||||||||||||
Golden Nugget Online Gaming, Inc., 2020 Initial Term Loan, 3 Month LIBOR + 12.000% | 13.000 | (c) | 10/04/23 | 4 | 4,360 | |||||||||||
Scientific Games International, Inc., Initial Term B-5 Loan, 1 Month LIBOR + 2.750% | 2.865 | (c) | 08/14/24 | 74 | 72,615 | |||||||||||
Twin River Worldwide Holdings, Inc., Term B-1 Facility Loan, 3 Month LIBOR + 8.000% | 9.000 | (c) | 05/11/26 | 50 | 53,170 | |||||||||||
|
| |||||||||||||||
130,145 | ||||||||||||||||
Industrial Services 0.2% | ||||||||||||||||
Great American Outdoors Group LLC, Term Loan B, 3 Month LIBOR + 4.250% | 5.000 | (c) | 03/06/28 | 125 | 125,097 | |||||||||||
Infrastructure Software 0.4% | ||||||||||||||||
McAfee LLC, Term B USD Loan, 1 Month LIBOR + 3.750% | 3.865 | (c) | 09/30/24 | 217 | 217,579 | |||||||||||
Oil & Gas 0.3% | ||||||||||||||||
Ascent Resources Utica Holdings LLC/Aru Finance Corp., Term Loan (Second Lien), 3 Month LIBOR + 9.000% | 10.000 | (c) | 11/01/25 | 118 | 130,611 | |||||||||||
CITGO Petroleum Corp., 2019 Incremental Term B Loan, 3 Month LIBOR + 6.250% | 7.250 | (c) | 03/28/24 | 67 | 67,448 | |||||||||||
|
| |||||||||||||||
198,059 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 9 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
BANK LOANS (Continued) | ||||||||||||||||
Software 1.1% | ||||||||||||||||
Greeneden U.S. Holdings I LLC, Initial Dollar Term Loan, 1 Month LIBOR + 4.000% | 4.750 | %(c) | 12/01/27 | 25 | $ | 25,094 | ||||||||||
Informatica LLC, Initial Loan (Second Lien) | 7.125 | 02/25/25 | 25 | 25,604 | ||||||||||||
Peraton Corp., Cov-Lite Delayed Draw Term Loan, 2 Month LIBOR + 3.750% | 4.500 | (c) | 02/01/28 | 96 | 96,009 | |||||||||||
Peraton Corp., Term B Loan (First Lien), 2 Month LIBOR + 3.750% | 4.500 | (c) | 02/01/28 | 54 | 54,553 | |||||||||||
Playtika Holding Corp., Term B Loan, 3 Month LIBOR + 6.000% | 7.000 | (c) | 12/10/24 | 119 | 119,089 | |||||||||||
TIBCO Software, Inc., Term B-3 Loan, 1 Month LIBOR + 3.750% | 3.870 | (c) | 06/30/26 | 199 | 199,049 | |||||||||||
TIBCO Software, Inc., Term Loan (Second Lien), 1 Month LIBOR + 7.250% | 7.370 | (c) | 03/03/28 | 125 | 126,146 | |||||||||||
|
| |||||||||||||||
645,544 | ||||||||||||||||
Specialty Chemicals 0.3% | ||||||||||||||||
Solenis Holdings LLC, Initial Dollar Term Loan (First Lien), 3 Month LIBOR + 4.000% | 4.190 | (c) | 06/26/25 | 98 | 97,851 | |||||||||||
Solenis Holdings LLC, Initial Term Loan (Second Lien), 3 Month LIBOR + 8.500% | 8.690 | (c) | 06/26/26 | 100 | 100,125 | |||||||||||
|
| |||||||||||||||
197,976 | ||||||||||||||||
Telecommunications 0.3% | ||||||||||||||||
Xplornet Communications, Inc., Initial Term Loan, 1 Month LIBOR + 4.750% | 4.865 | (c) | 06/10/27 | 174 | 174,796 | |||||||||||
|
| |||||||||||||||
TOTAL BANK LOANS | 2,176,194 | |||||||||||||||
|
| |||||||||||||||
CORPORATE BONDS 92.6% | ||||||||||||||||
Advertising 0.6% | ||||||||||||||||
Lamar Media Corp., Gtd. Notes, 144A | 3.625 | 01/15/31 | 25 | 24,708 | ||||||||||||
National CineMedia LLC, | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 5.875 | 04/15/28 | 50 | 46,058 | ||||||||||||
Sr. Unsec’d. Notes | 5.750 | 08/15/26 | 25 | 21,504 | ||||||||||||
Terrier Media Buyer, Inc., Gtd. Notes, 144A | 8.875 | 12/15/27 | 265 | 284,100 | ||||||||||||
|
| |||||||||||||||
376,370 | ||||||||||||||||
Aerospace & Defense 2.0% | ||||||||||||||||
Boeing Co. (The), | ||||||||||||||||
Sr. Unsec’d. Notes | 5.150 | 05/01/30 | 125 | 145,655 | ||||||||||||
Sr. Unsec’d. Notes | 5.805 | 05/01/50 | 225 | 290,099 |
See Notes to Financial Statements.
10 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Aerospace & Defense (cont'd.) | ||||||||||||||||
Boeing Co. (The), (cont'd.) | ||||||||||||||||
Sr. Unsec’d. Notes | 5.930 | % | 05/01/60 | 50 | $ | 65,699 | ||||||||||
Spirit AeroSystems, Inc., Sec’d. Notes, 144A | 7.500 | 04/15/25 | 125 | 132,260 | ||||||||||||
SSL Robotics LLC, Sr. Sec’d. Notes, 144A | 9.750 | 12/31/23 | 175 | 196,001 | ||||||||||||
TransDigm, Inc., | ||||||||||||||||
Gtd. Notes | 5.500 | 11/15/27 | 175 | 179,652 | ||||||||||||
Gtd. Notes | 6.500 | 05/15/25 | 100 | 102,017 | ||||||||||||
Gtd. Notes, 144A | 4.625 | 01/15/29 | 50 | 49,250 | ||||||||||||
|
| |||||||||||||||
1,160,633 | ||||||||||||||||
Agriculture 0.2% | ||||||||||||||||
Vector Group Ltd., | ||||||||||||||||
Gtd. Notes, 144A | 10.500 | 11/01/26 | 50 | 53,961 | ||||||||||||
Sr. Sec’d. Notes, 144A | 5.750 | 02/01/29 | 75 | 77,761 | ||||||||||||
|
| |||||||||||||||
131,722 | ||||||||||||||||
Airlines 0.1% | ||||||||||||||||
Hawaiian Brand Intellectual Property Ltd./HawaiianMiles Loyalty Ltd. (Cayman Islands), Sr. Sec’d. Notes, 144A | 5.750 | 01/20/26 | 50 | 52,470 | ||||||||||||
Apparel 0.7% | ||||||||||||||||
William Carter Co. (The), Gtd. Notes, 144A | 5.500 | 05/15/25 | 200 | 211,473 | ||||||||||||
Wolverine World Wide, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.000 | 09/01/26 | 50 | 51,254 | ||||||||||||
Gtd. Notes, 144A | 6.375 | 05/15/25 | 125 | 133,602 | ||||||||||||
|
| |||||||||||||||
396,329 | ||||||||||||||||
Auto Manufacturers 3.3% | ||||||||||||||||
Allison Transmission, Inc., Sr. Unsec’d. Notes, 144A | 4.750 | 10/01/27 | 50 | 51,672 | ||||||||||||
Ford Motor Co., | ||||||||||||||||
Sr. Unsec’d. Notes(a) | 4.750 | 01/15/43 | 250 | 252,610 | ||||||||||||
Sr. Unsec’d. Notes | 5.291 | 12/08/46 | 475 | 502,919 | ||||||||||||
Sr. Unsec’d. Notes | 7.400 | 11/01/46 | 75 | 97,636 | ||||||||||||
Sr. Unsec’d. Notes | 8.500 | 04/21/23 | 50 | 55,875 | ||||||||||||
Sr. Unsec’d. Notes | 9.000 | 04/22/25 | 100 | 120,926 | ||||||||||||
Sr. Unsec’d. Notes(a) | 9.625 | 04/22/30 | 120 | 170,179 | ||||||||||||
Ford Motor Credit Co. LLC, Sr. Unsec’d. Notes | 4.000 | 11/13/30 | 250 | 255,582 | ||||||||||||
Navistar International Corp., Sr. Sec’d. Notes, 144A | 9.500 | 05/01/25 | 305 | 341,163 | ||||||||||||
PM General Purchaser LLC, Sr. Sec’d. Notes, 144A | 9.500 | 10/01/28 | 75 | 82,002 | ||||||||||||
|
| |||||||||||||||
1,930,564 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 11 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Auto Parts & Equipment 1.4% | ||||||||||||||||
Adient Global Holdings Ltd. (Jersey, Channel Islands), Gtd. Notes, 144A(a) | 4.875 | % | 08/15/26 | 200 | $ | 202,573 | ||||||||||
Adient US LLC, Sr. Sec’d. Notes, 144A | 9.000 | 04/15/25 | 25 | 27,734 | ||||||||||||
American Axle & Manufacturing, Inc., | ||||||||||||||||
Gtd. Notes | 6.250 | 04/01/25 | 25 | 25,757 | ||||||||||||
Gtd. Notes | 6.250 | 03/15/26 | 100 | 102,393 | ||||||||||||
Gtd. Notes(a) | 6.500 | 04/01/27 | 125 | 130,519 | ||||||||||||
Cooper-Standard Automotive, Inc., Gtd. Notes, 144A | 5.625 | 11/15/26 | 50 | 43,428 | ||||||||||||
Dana Financing Luxembourg Sarl (Luxembourg), Gtd. Notes, 144A | 6.500 | 06/01/26 | 100 | 104,431 | ||||||||||||
Dana, Inc., Sr. Unsec’d. Notes | 5.625 | 06/15/28 | 60 | 63,853 | ||||||||||||
Tenneco, Inc., Sr. Sec’d. Notes, 144A | 7.875 | 01/15/29 | 25 | 28,018 | ||||||||||||
Titan International, Inc., Sr. Sec’d. Notes | 6.500 | 11/30/23 | 75 | 73,617 | ||||||||||||
|
| |||||||||||||||
802,323 | ||||||||||||||||
Banks 0.3% | ||||||||||||||||
Citigroup, Inc., 5 Year CMT Index + 3.417% | 3.875 | (c) | 02/18/26 | (rr) | 75 | 74,666 | ||||||||||
Freedom Mortgage Corp., Sr. Unsec’d. Notes, 144A | 7.625 | 05/01/26 | 75 | 80,246 | ||||||||||||
|
| |||||||||||||||
154,912 | ||||||||||||||||
Building Materials 2.4% | ||||||||||||||||
Cornerstone Building Brands, Inc., Gtd. Notes, 144A | 6.125 | 01/15/29 | 275 | 281,818 | ||||||||||||
Forterra Finance LLC/FRTA Finance Corp., Sr. Sec’d. Notes, 144A | 6.500 | 07/15/25 | 25 | 26,966 | ||||||||||||
Griffon Corp., Gtd. Notes | 5.750 | 03/01/28 | 125 | 131,217 | ||||||||||||
Masonite International Corp. (Canada), Gtd. Notes, 144A | 5.375 | 02/01/28 | 100 | 106,077 | ||||||||||||
Patrick Industries, Inc., Gtd. Notes, 144A | 7.500 | 10/15/27 | 50 | 54,759 | ||||||||||||
SRM Escrow Issuer LLC, Sr. Sec’d. Notes, 144A | 6.000 | 11/01/28 | 125 | 130,096 | ||||||||||||
Standard Industries, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 3.375 | 01/15/31 | 50 | 47,783 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.375 | 07/15/30 | 75 | 77,314 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.750 | 01/15/28 | 125 | 130,098 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.000 | 02/15/27 | 120 | 124,059 | ||||||||||||
Summit Materials LLC/Summit Materials Finance Corp., | ||||||||||||||||
Gtd. Notes, 144A | 5.250 | 01/15/29 | 15 | 15,914 | ||||||||||||
Gtd. Notes, 144A | 6.500 | 03/15/27 | 150 | 159,106 | ||||||||||||
US Concrete, Inc., Gtd. Notes, 144A | 5.125 | 03/01/29 | 125 | 128,663 | ||||||||||||
|
| |||||||||||||||
1,413,870 |
See Notes to Financial Statements.
12 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Chemicals 2.5% | ||||||||||||||||
Ashland LLC, Gtd. Notes | 6.875 | % | 05/15/43 | 75 | $ | 99,825 | ||||||||||
Axalta Coating Systems LLC, Gtd. Notes, 144A | 3.375 | 02/15/29 | 150 | 145,731 | ||||||||||||
Chemours Co. (The), | ||||||||||||||||
Gtd. Notes, 144A | 5.750 | 11/15/28 | 100 | 102,387 | ||||||||||||
Gtd. Notes | 7.000 | 05/15/25 | 200 | 206,119 | ||||||||||||
Cornerstone Chemical Co., Sr. Sec’d. Notes, 144A | 6.750 | 08/15/24 | 75 | 70,688 | ||||||||||||
HB Fuller Co., Sr. Unsec’d. Notes | 4.250 | 10/15/28 | 25 | 25,521 | ||||||||||||
Minerals Technologies, Inc., Gtd. Notes, 144A | 5.000 | 07/01/28 | 25 | 26,060 | ||||||||||||
Rain CII Carbon LLC/CII Carbon Corp., Sec’d. Notes, 144A | 7.250 | 04/01/25 | 75 | 76,726 | ||||||||||||
TPC Group, Inc., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 10.500 | 08/01/24 | 185 | 168,663 | ||||||||||||
Sr. Sec’d. Notes, 144A | 10.875 | 08/01/24 | 46 | 45,368 | ||||||||||||
Tronox, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 6.500 | 04/15/26 | 95 | 98,177 | ||||||||||||
Sr. Sec’d. Notes, 144A | 6.500 | 05/01/25 | 125 | 133,696 | ||||||||||||
Valvoline, Inc., Sr. Unsec’d. Notes, 144A | 3.625 | 06/15/31 | 50 | 49,344 | ||||||||||||
Venator Finance Sarl/Venator Materials LLC (Multinational), | ||||||||||||||||
Gtd. Notes, 144A | 5.750 | 07/15/25 | 105 | 104,230 | ||||||||||||
Sr. Sec’d. Notes, 144A | 9.500 | 07/01/25 | 25 | 28,285 | ||||||||||||
WR Grace & Co.-Conn, Gtd. Notes, 144A | 4.875 | 06/15/27 | 100 | 103,643 | ||||||||||||
|
| |||||||||||||||
1,484,463 | ||||||||||||||||
Commercial Services 3.8% | ||||||||||||||||
Adtalem Global Education, Inc., Sr. Sec’d. Notes, 144A | 5.500 | 03/01/28 | 75 | 74,638 | ||||||||||||
Allied Universal Holdco LLC/Allied Universal Finance Corp., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 6.625 | 07/15/26 | 110 | 116,423 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 9.750 | 07/15/27 | 150 | 165,496 | ||||||||||||
AMN Healthcare, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 4.000 | 04/15/29 | 25 | 25,421 | ||||||||||||
Gtd. Notes, 144A | 4.625 | 10/01/27 | 175 | 182,270 | ||||||||||||
Brink’s Co. (The), Gtd. Notes, 144A | 4.625 | 10/15/27 | 100 | 102,894 | ||||||||||||
Gartner, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 3.750 | 10/01/30 | 25 | 25,301 | ||||||||||||
Gtd. Notes, 144A | 4.500 | 07/01/28 | 15 | 15,759 | ||||||||||||
Laureate Education, Inc., Gtd. Notes, 144A | 8.250 | 05/01/25 | 335 | 351,723 | ||||||||||||
Nielsen Finance LLC/Nielsen Finance Co., | ||||||||||||||||
Gtd. Notes, 144A | 5.625 | 10/01/28 | 50 | 52,754 | ||||||||||||
Gtd. Notes, 144A | 5.875 | 10/01/30 | 15 | 16,210 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 13 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Commercial Services (cont'd.) | ||||||||||||||||
Shift4 Payments LLC/Shift4 Payments Finance | 4.625 | % | 11/01/26 | 25 | $ | 26,119 | ||||||||||
Sub, Inc., Gtd. Notes, 144A | ||||||||||||||||
United Rentals North America, Inc., | ||||||||||||||||
Gtd. Notes | 4.000 | 07/15/30 | 275 | 285,121 | ||||||||||||
Gtd. Notes | 4.875 | 01/15/28 | 200 | 211,515 | ||||||||||||
Gtd. Notes | 5.250 | 01/15/30 | 200 | 219,912 | ||||||||||||
Verscend Escrow Corp., Sr. Unsec’d. Notes, 144A | 9.750 | 08/15/26 | 350 | 375,713 | ||||||||||||
|
| |||||||||||||||
2,247,269 | ||||||||||||||||
Computers 1.8% | ||||||||||||||||
Banff Merger Sub, Inc., Sr. Unsec’d. Notes, 144A | 9.750 | 09/01/26 | 326 | 346,731 | ||||||||||||
Everi Payments, Inc., Gtd. Notes, 144A | 7.500 | 12/15/25 | 109 | 113,062 | ||||||||||||
NCR Corp., | ||||||||||||||||
Gtd. Notes, 144A | 5.000 | 10/01/28 | 50 | 50,771 | ||||||||||||
Gtd. Notes, 144A | 5.250 | 10/01/30 | 50 | 51,921 | ||||||||||||
Gtd. Notes, 144A | 8.125 | 04/15/25 | 25 | 27,208 | ||||||||||||
Tempo Acquisition LLC/Tempo Acquisition Finance Corp., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 5.750 | 06/01/25 | 25 | 26,542 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 06/01/25 | 425 | 435,932 | ||||||||||||
|
| |||||||||||||||
1,052,167 | ||||||||||||||||
Distribution/Wholesale 0.6% | ||||||||||||||||
Core & Main Holdings LP, Sr. Unsec’d. Notes, Cash coupon 8.625% or PIK 9.375%, 144A | 8.625 | 09/15/24 | 150 | 153,021 | ||||||||||||
H&E Equipment Services, Inc., Gtd. Notes, 144A | 3.875 | 12/15/28 | 150 | 144,351 | ||||||||||||
Performance Food Group, Inc., Gtd. Notes, 144A | 5.500 | 10/15/27 | 25 | 26,289 | ||||||||||||
|
| |||||||||||||||
323,661 | ||||||||||||||||
Diversified Financial Services 2.7% | ||||||||||||||||
Alliance Data Systems Corp., Gtd. Notes, 144A | 4.750 | 12/15/24 | 100 | 102,455 | ||||||||||||
Fairstone Financial, Inc. (Canada), Sr. Unsec’d. Notes, 144A | 7.875 | 07/15/24 | 30 | 31,618 | ||||||||||||
goeasy Ltd. (Canada), Gtd. Notes, 144A | 5.375 | 12/01/24 | 75 | 77,894 | ||||||||||||
Home Point Capital, Inc., Gtd. Notes, 144A | 5.000 | 02/01/26 | 50 | 49,762 | ||||||||||||
LPL Holdings, Inc., Gtd. Notes, 144A | 5.750 | 09/15/25 | 50 | 51,477 | ||||||||||||
Nationstar Mortgage Holdings, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.125 | 12/15/30 | 125 | 127,571 | ||||||||||||
Gtd. Notes, 144A | 6.000 | 01/15/27 | 125 | 131,726 |
See Notes to Financial Statements.
14 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Diversified Financial Services (cont'd.) | ||||||||||||||||
OneMain Finance Corp., | ||||||||||||||||
Gtd. Notes | 4.000 | % | 09/15/30 | 125 | $ | 121,146 | ||||||||||
Gtd. Notes | 6.875 | 03/15/25 | 275 | 310,001 | ||||||||||||
Gtd. Notes | 7.125 | 03/15/26 | 275 | 318,018 | ||||||||||||
PennyMac Financial Services, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 4.250 | 02/15/29 | 50 | 49,442 | ||||||||||||
Gtd. Notes, 144A | 5.375 | 10/15/25 | 100 | 105,051 | ||||||||||||
PHH Mortgage Corp., Sr. Sec’d. Notes | 7.875 | 03/15/26 | 100 | 99,486 | ||||||||||||
|
| |||||||||||||||
1,575,647 | ||||||||||||||||
Electric 4.0% | ||||||||||||||||
Calpine Corp., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 4.500 | 02/15/28 | 186 | 191,084 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.000 | 02/01/31 | 250 | 247,319 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.125 | 03/15/28 | 525 | 529,504 | ||||||||||||
NRG Energy, Inc., | ||||||||||||||||
Gtd. Notes | 5.750 | 01/15/28 | 150 | 159,236 | ||||||||||||
Gtd. Notes | 6.625 | 01/15/27 | 100 | 103,987 | ||||||||||||
Gtd. Notes, 144A | 3.375 | 02/15/29 | 75 | 73,867 | ||||||||||||
Gtd. Notes, 144A(a) | 3.625 | 02/15/31 | 75 | 73,870 | ||||||||||||
Gtd. Notes, 144A | 5.250 | 06/15/29 | 100 | 105,922 | ||||||||||||
PG&E Corp., | ||||||||||||||||
Sr. Sec’d. Notes | 5.000 | 07/01/28 | 75 | 78,859 | ||||||||||||
Sr. Sec’d. Notes | 5.250 | 07/01/30 | 220 | 235,363 | ||||||||||||
Vistra Operations Co. LLC, | ||||||||||||||||
Gtd. Notes, 144A | 5.000 | 07/31/27 | 65 | 67,763 | ||||||||||||
Gtd. Notes, 144A | 5.500 | 09/01/26 | 50 | 51,855 | ||||||||||||
Gtd. Notes, 144A | 5.625 | 02/15/27 | 375 | 391,813 | ||||||||||||
|
| |||||||||||||||
2,310,442 | ||||||||||||||||
Electrical Component & Equipment 0.5% | ||||||||||||||||
WESCO Distribution, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 7.125 | 06/15/25 | 150 | 162,386 | ||||||||||||
Gtd. Notes, 144A | 7.250 | 06/15/28 | 100 | 111,066 | ||||||||||||
|
| |||||||||||||||
273,452 | ||||||||||||||||
Electronics 0.2% | ||||||||||||||||
Brightstar Escrow Corp., Sr. Sec’d. Notes, 144A | 9.750 | 10/15/25 | 100 | 106,899 | ||||||||||||
Sensata Technologies, Inc., Gtd. Notes, 144A | 3.750 | 02/15/31 | 15 | 15,056 | ||||||||||||
|
| |||||||||||||||
121,955 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 15 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Energy-Alternate Sources 0.3% | ||||||||||||||||
Enviva Partners LP/Enviva Partners Finance Corp., Gtd. Notes, 144A | 6.500 | % | 01/15/26 | 163 | $ | 170,613 | ||||||||||
Engineering & Construction 0.6% | ||||||||||||||||
AECOM, Gtd. Notes | 5.125 | 03/15/27 | 200 | 218,992 | ||||||||||||
PowerTeam Services LLC, Sr. Sec’d. Notes, 144A | 9.033 | 12/04/25 | 50 | 55,638 | ||||||||||||
TopBuild Corp., Sr. Unsec’d. Notes, 144A | 3.625 | 03/15/29 | 50 | 50,178 | ||||||||||||
|
| |||||||||||||||
324,808 | ||||||||||||||||
Entertainment 4.8% | ||||||||||||||||
AMC Entertainment Holdings, Inc., Sec’d. Notes, PIK 12.000% until 12/15/2021 then cash coupon 10.000% until 6/15/26; or combination of cash coupon 5.000% and PIK 6.000%, 144A | 12.000 | 06/15/26 | 150 | 116,584 | ||||||||||||
Bally’s Corp., Gtd. Notes, 144A | 6.750 | 06/01/27 | 125 | 133,299 | ||||||||||||
Caesars Entertainment, Inc., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 6.250 | 07/01/25 | 140 | 148,360 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.125 | 07/01/27 | 55 | 59,945 | ||||||||||||
Caesars Resort Collection LLC/CRC Finco, Inc., Gtd. Notes, 144A | 5.250 | 10/15/25 | 325 | 322,941 | ||||||||||||
CCM Merger, Inc., Sr. Unsec’d. Notes, 144A | 6.375 | 05/01/26 | 25 | 26,506 | ||||||||||||
Cedar Fair LP, Gtd. Notes | 5.250 | 07/15/29 | 50 | 50,520 | ||||||||||||
Golden Entertainment, Inc., Sr. Unsec’d. Notes, 144A | 7.625 | 04/15/26 | 125 | 132,788 | ||||||||||||
International Game Technology PLC (United Kingdom), Sr. Sec’d. Notes, 144A | 5.250 | 01/15/29 | 200 | 211,798 | ||||||||||||
Jacobs Entertainment, Inc., Sec’d. Notes, 144A(a) | 7.875 | 02/01/24 | 125 | 130,063 | ||||||||||||
Mohegan Gaming & Entertainment, Sec’d. Notes, 144A | 8.000 | 02/01/26 | 50 | 49,436 | ||||||||||||
Motion Bondco DAC (Ireland), Gtd. Notes, 144A(a) | 6.625 | 11/15/27 | 200 | 205,869 | ||||||||||||
Peninsula Pacific Entertainment LLC/Peninsula Pacific Entertainment Finance In, Sr. Unsec’d. Notes, 144A | 8.500 | 11/15/27 | 125 | 134,409 | ||||||||||||
Penn National Gaming, Inc., Sr. Unsec’d. Notes, 144A | 5.625 | 01/15/27 | 200 | 208,801 | ||||||||||||
Scientific Games International, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 8.250 | 03/15/26 | 275 | 291,265 | ||||||||||||
Gtd. Notes, 144A | 8.625 | 07/01/25 | 200 | 215,304 | ||||||||||||
Sr. Sec’d. Notes, 144A | 5.000 | 10/15/25 | 75 | 77,162 | ||||||||||||
Six Flags Entertainment Corp., | ||||||||||||||||
Gtd. Notes, 144A | 4.875 | 07/31/24 | 175 | 175,355 | ||||||||||||
Gtd. Notes, 144A | 5.500 | 04/15/27 | 50 | 51,055 | ||||||||||||
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., | ||||||||||||||||
Gtd. Notes, 144A | 5.125 | 10/01/29 | 30 | 31,582 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.750 | 04/15/25 | 25 | 27,108 | ||||||||||||
|
| |||||||||||||||
2,800,150 |
See Notes to Financial Statements.
16 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Food 1.6% | ||||||||||||||||
Albertsons Cos., Inc./Safeway, Inc./New Albertsons LP/Albertsons LLC, Gtd. Notes, 144A | 3.500 | % | 03/15/29 | 325 | $ | 312,045 | ||||||||||
B&G Foods, Inc., Gtd. Notes | 5.250 | 09/15/27 | 100 | 104,783 | ||||||||||||
C&S Group Enterprises LLC, Gtd. Notes, 144A | 5.000 | 12/15/28 | 75 | 74,097 | ||||||||||||
Chobani LLC/Chobani Finance Corp., Inc., Gtd.Notes, 144A | 7.500 | 04/15/25 | 50 | 52,058 | ||||||||||||
Kraft Heinz Foods Co., | ||||||||||||||||
Gtd. Notes | 4.375 | 06/01/46 | 75 | 80,996 | ||||||||||||
Gtd. Notes | 4.875 | 10/01/49 | 50 | 58,513 | ||||||||||||
Gtd. Notes | 5.500 | 06/01/50 | 75 | 95,161 | ||||||||||||
Pilgrim’s Pride Corp., Gtd. Notes, 144A | 5.875 | 09/30/27 | 125 | 134,049 | ||||||||||||
Simmons Foods, Inc./Simmons Prepared Foods, Inc./Simmons Pet Food, Inc./Simmons Feed, Sec’d. Notes, 144A | 4.625 | 03/01/29 | 25 | 25,319 | ||||||||||||
US Foods, Inc., Sr. Unsec’d. Notes, 144A | 4.750 | 02/15/29 | 25 | 25,353 | ||||||||||||
|
| |||||||||||||||
962,374 | ||||||||||||||||
Gas 0.9% | ||||||||||||||||
AmeriGas Partners LP/AmeriGas Finance Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.500 | 05/20/25 | 225 | 246,322 | ||||||||||||
Sr. Unsec’d. Notes | 5.750 | 05/20/27 | 75 | 84,460 | ||||||||||||
Sr. Unsec’d. Notes | 5.875 | 08/20/26 | 178 | 201,010 | ||||||||||||
|
| |||||||||||||||
531,792 | ||||||||||||||||
Healthcare-Services 4.5% | ||||||||||||||||
Catalent Pharma Solutions, Inc., Gtd. Notes, 144A | 3.125 | 02/15/29 | 25 | 24,701 | ||||||||||||
CHS/Community Health Systems, Inc., Sec’d. Notes, 144A | 6.875 | 04/15/29 | 25 | 25,646 | ||||||||||||
DaVita, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 3.750 | 02/15/31 | 350 | 333,808 | ||||||||||||
Gtd. Notes, 144A | 4.625 | 06/01/30 | 100 | 101,666 | ||||||||||||
Encompass Health Corp., Gtd. Notes | 4.625 | 04/01/31 | 25 | 26,561 | ||||||||||||
HCA, Inc., | ||||||||||||||||
Gtd. Notes | 5.875 | 02/01/29 | 50 | 58,907 | ||||||||||||
Gtd. Notes | 7.050 | 12/01/27 | 75 | 92,237 | ||||||||||||
Legacy LifePoint Health LLC, Sr. Sec’d. Notes, 144A | 6.750 | 04/15/25 | 75 | 79,592 | ||||||||||||
MEDNAX, Inc., Gtd. Notes, 144A | 6.250 | 01/15/27 | 150 | 158,433 | ||||||||||||
Prime Healthcare Services, Inc., Sr. Sec’d. Notes, 144A | 7.250 | 11/01/25 | 25 | 26,851 | ||||||||||||
RegionalCare Hospital Partners Holdings, Inc./LifePoint Health, Inc., Gtd. Notes, 144A | 9.750 | 12/01/26 | 400 | 431,037 | ||||||||||||
Surgery Center Holdings, Inc., Gtd. Notes, 144A | 6.750 | 07/01/25 | 75 | 76,723 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 17 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Healthcare-Services (cont'd.) | ||||||||||||||||
Tenet Healthcare Corp., | ||||||||||||||||
Gtd. Notes, 144A | 6.125 | % | 10/01/28 | 550 | $ | 578,844 | ||||||||||
Sec’d. Notes, 144A | 6.250 | 02/01/27 | 150 | 158,325 | ||||||||||||
Sr. Sec’d. Notes, 144A | 4.625 | 06/15/28 | 200 | 208,057 | ||||||||||||
Sr. Sec’d. Notes, 144A | 4.875 | 01/01/26 | 75 | 77,657 | ||||||||||||
Sr. Sec’d. Notes, 144A | 7.500 | 04/01/25 | 25 | 27,149 | ||||||||||||
Sr. Unsec’d. Notes | 6.875 | 11/15/31 | 125 | 137,003 | ||||||||||||
|
| |||||||||||||||
2,623,197 | ||||||||||||||||
Home Builders 4.0% | ||||||||||||||||
Ashton Woods USA LLC/Ashton Woods Finance Co., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 08/01/25 | 125 | 130,008 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 9.875 | 04/01/27 | 75 | 84,924 | ||||||||||||
Beazer Homes USA, Inc., | ||||||||||||||||
Gtd. Notes | 5.875 | 10/15/27 | 75 | 78,373 | ||||||||||||
Gtd. Notes | 7.250 | 10/15/29 | 225 | 250,433 | ||||||||||||
Brookfield Residential Properties, Inc./Brookfield Residential US Corp. (Canada), | ||||||||||||||||
Gtd. Notes, 144A | 4.875 | 02/15/30 | 75 | 75,905 | ||||||||||||
Gtd. Notes, 144A | 6.250 | 09/15/27 | 125 | 131,879 | ||||||||||||
Gtd. Notes, 144A | 6.375 | 05/15/25 | 125 | 128,084 | ||||||||||||
Century Communities, Inc., Gtd. Notes | 6.750 | 06/01/27 | 200 | 214,400 | ||||||||||||
Forestar Group, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.000 | 03/01/28 | 75 | 78,487 | ||||||||||||
Gtd. Notes, 144A | 8.000 | 04/15/24 | 25 | 26,147 | ||||||||||||
KB Home, Gtd. Notes | 4.800 | 11/15/29 | 50 | 53,785 | ||||||||||||
M/I Homes, Inc., Gtd. Notes | 4.950 | 02/01/28 | 100 | 104,936 | ||||||||||||
Mattamy Group Corp. (Canada), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.625 | 03/01/30 | 75 | 77,915 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.250 | 12/15/27 | 50 | 52,606 | ||||||||||||
New Home Co., Inc. (The), Gtd. Notes, 144A | 7.250 | 10/15/25 | 25 | 25,684 | ||||||||||||
Shea Homes LP/Shea Homes Funding Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.750 | 02/15/28 | 125 | 129,293 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.750 | 04/01/29 | 50 | 51,367 | ||||||||||||
STL Holding Co. LLC, Sr. Unsec’d. Notes, 144A | 7.500 | 02/15/26 | 125 | 130,468 | ||||||||||||
Taylor Morrison Communities, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 6.625 | 07/15/27 | 175 | 189,086 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.125 | 08/01/30 | 185 | 198,723 | ||||||||||||
Taylor Morrison Communities, Inc./Taylor Morrison Holdings II, Inc. (Multinational), Gtd. Notes, 144A | 5.625 | 03/01/24 | 100 | 108,211 | ||||||||||||
Tri Pointe Homes, Inc., Gtd. Notes | 5.700 | 06/15/28 | 15 | 16,684 | ||||||||||||
|
| |||||||||||||||
2,337,398 |
See Notes to Financial Statements.
18 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Household Products/Wares 0.3% | ||||||||||||||||
Kronos Acquisition Holdings, Inc./KIK Custom Products, Inc., Sr. Sec’d. Notes, 144A | 5.000 | % | 12/31/26 | 25 | $ | 25,736 | ||||||||||
Prestige Brands, Inc., Gtd. Notes, 144A | 3.750 | 04/01/31 | 25 | 24,448 | ||||||||||||
Spectrum Brands, Inc., Gtd. Notes, 144A | 5.500 | 07/15/30 | 125 | 134,774 | ||||||||||||
|
| |||||||||||||||
184,958 | ||||||||||||||||
Internet 0.2% | ||||||||||||||||
Go Daddy Operating Co. LLC/GD Finance Co., Inc., Gtd. Notes, 144A | 3.500 | 03/01/29 | 50 | 49,687 | ||||||||||||
NortonLifeLock, Inc., Sr. Unsec’d. Notes, 144A | 5.000 | 04/15/25 | 40 | 40,642 | ||||||||||||
|
| |||||||||||||||
90,329 | ||||||||||||||||
Iron/Steel 0.4% | ||||||||||||||||
Big River Steel LLC/BRS Finance Corp., Sr. Sec’d. Notes, 144A | 6.625 | 01/31/29 | 140 | 151,131 | ||||||||||||
United States Steel Corp., Sr. Unsec’d. Notes | 6.875 | 03/01/29 | 95 | 93,219 | ||||||||||||
|
| |||||||||||||||
244,350 | ||||||||||||||||
Leisure Time 0.4% | ||||||||||||||||
Carnival Corp. (Panama), Sr. Unsec’d. Notes, 144A | 5.750 | 03/01/27 | 25 | 25,378 | ||||||||||||
NCL Corp. Ltd. (Bermuda), | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 10.250 | 02/01/26 | 30 | 34,954 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 3.625 | 12/15/24 | 75 | 69,340 | ||||||||||||
Royal Caribbean Cruises Ltd. (Liberia), Sr. Unsec’d. Notes | 5.250 | 11/15/22 | 25 | 25,449 | ||||||||||||
Viking Cruises Ltd. (Bermuda), Sr. Unsec’d. Notes, 144A | 7.000 | 02/15/29 | 25 | 25,368 | ||||||||||||
Viking Ocean Cruises Ship VII Ltd. (Bermuda), Sr. Sec’d. Notes, 144A | 5.625 | 02/15/29 | 25 | 25,259 | ||||||||||||
Vista Outdoor, Inc., Gtd. Notes, 144A | 4.500 | 03/15/29 | 50 | 49,596 | ||||||||||||
|
| |||||||||||||||
255,344 | ||||||||||||||||
Lodging 2.6% | ||||||||||||||||
Boyd Gaming Corp., Gtd. Notes | 6.000 | 08/15/26 | 275 | 284,617 | ||||||||||||
Full House Resorts, Inc., Sr. Sec’d. Notes, 144A | 8.250 | 02/15/28 | 25 | 26,499 | ||||||||||||
Hilton Domestic Operating Co., Inc., | ||||||||||||||||
Gtd. Notes, 144A | 3.625 | 02/15/32 | 300 | 295,505 | ||||||||||||
Gtd. Notes, 144A | 4.000 | 05/01/31 | 75 | 75,902 | ||||||||||||
Gtd. Notes, 144A | 5.375 | 05/01/25 | 25 | 26,281 | ||||||||||||
Gtd. Notes, 144A | 5.750 | 05/01/28 | 25 | 27,082 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 19 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Lodging (cont'd.) | ||||||||||||||||
MGM Resorts International, | ||||||||||||||||
Gtd. Notes | 4.750 | % | 10/15/28 | 175 | $ | 182,555 | ||||||||||
Gtd. Notes | 6.750 | 05/01/25 | 250 | 267,396 | ||||||||||||
Station Casinos LLC, Gtd. Notes, 144A | 4.500 | 02/15/28 | 100 | 99,616 | ||||||||||||
Travel + Leisure Co., Sr. Sec’d. Notes, 144A | 4.625 | 03/01/30 | 25 | 25,942 | ||||||||||||
Wynn Macau Ltd. (Cayman Islands), Sr. Unsec’d. Notes, 144A | 5.625 | 08/26/28 | 200 | 208,003 | ||||||||||||
|
| |||||||||||||||
1,519,398 | ||||||||||||||||
Machinery-Diversified 0.4% | ||||||||||||||||
ATS Automation Tooling Systems, Inc. (Canada), Sr. Unsec’d. Notes, 144A | 4.125 | 12/15/28 | 25 | 25,275 | ||||||||||||
GrafTech Finance, Inc., Sr. Sec’d. Notes, 144A | 4.625 | 12/15/28 | 25 | 25,497 | ||||||||||||
Maxim Crane Works Holdings Capital LLC, Sec’d. Notes, 144A | 10.125 | 08/01/24 | 150 | 157,501 | ||||||||||||
|
| |||||||||||||||
208,273 | ||||||||||||||||
Media 8.4% | ||||||||||||||||
Beasley Mezzanine Holdings LLC, Sr. Sec’d. Notes, 144A | 8.625 | 02/01/26 | 40 | 40,478 | ||||||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.250 | 02/01/31 | 575 | 580,054 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.500 | 05/01/32 | 800 | 821,960 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.750 | 03/01/30 | 75 | 78,209 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.375 | 06/01/29 | 300 | 323,188 | ||||||||||||
Clear Channel Worldwide Holdings, Inc., Sr. Sec’d. Notes, 144A | 5.125 | 08/15/27 | 400 | 406,608 | ||||||||||||
CSC Holdings LLC, | ||||||||||||||||
Gtd. Notes, 144A | 3.375 | 02/15/31 | 200 | 191,932 | ||||||||||||
Gtd. Notes, 144A | 4.125 | 12/01/30 | 200 | 200,823 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.625 | 12/01/30 | 325 | 323,931 | ||||||||||||
Diamond Sports Group LLC/Diamond Sports Finance Co., | ||||||||||||||||
Gtd. Notes, 144A | 6.625 | 08/15/27 | 711 | 366,294 | ||||||||||||
Sr. Sec’d. Notes, 144A | 5.375 | 08/15/26 | 160 | 113,190 | ||||||||||||
DISH DBS Corp., | ||||||||||||||||
Gtd. Notes | 5.875 | 11/15/24 | 25 | 26,165 | ||||||||||||
Gtd. Notes | 7.375 | 07/01/28 | 140 | 146,742 | ||||||||||||
Gtd. Notes | 7.750 | 07/01/26 | 150 | 164,839 | ||||||||||||
Gray Television, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 4.750 | 10/15/30 | 25 | 25,000 | ||||||||||||
Gtd. Notes, 144A | 7.000 | 05/15/27 | 175 | 191,205 |
See Notes to Financial Statements.
20 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Media (cont'd.) | ||||||||||||||||
iHeartCommunications, Inc., | ||||||||||||||||
Sr. Sec’d. Notes | 6.375 | % | 05/01/26 | 40 | $ | 42,316 | ||||||||||
Sr. Sec’d. Notes, 144A | 5.250 | 08/15/27 | 100 | 102,555 | ||||||||||||
Nexstar Broadcasting, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.625 | 07/15/27 | 50 | 52,804 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 4.750 | 11/01/28 | 50 | 51,049 | ||||||||||||
Radiate Holdco LLC/Radiate Finance, Inc., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 4.500 | 09/15/26 | 125 | 127,243 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.500 | 09/15/28 | 50 | 52,502 | ||||||||||||
Scripps Escrow II, Inc., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 3.875 | 01/15/29 | 25 | 24,558 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.375 | 01/15/31 | 25 | 25,390 | ||||||||||||
Scripps Escrow, Inc., Gtd. Notes, 144A | 5.875 | 07/15/27 | 20 | 20,817 | ||||||||||||
Sinclair Television Group, Inc., Gtd. Notes, 144A | 5.125 | 02/15/27 | 40 | 39,700 | ||||||||||||
Townsquare Media, Inc., Sr. Sec’d. Notes, 144A | 6.875 | 02/01/26 | 25 | 26,158 | ||||||||||||
Univision Communications, Inc., Sr. Sec’d. Notes, 144A | 6.625 | 06/01/27 | 300 | 315,047 | ||||||||||||
Urban One, Inc., Sr. Sec’d. Notes, 144A | 7.375 | 02/01/28 | 25 | 25,179 | ||||||||||||
|
| |||||||||||||||
4,905,936 | ||||||||||||||||
Mining 2.4% | ||||||||||||||||
Eldorado Gold Corp. (Canada), Sec’d. Notes, 144A | 9.500 | 06/01/24 | 59 | 65,754 | ||||||||||||
First Quantum Minerals Ltd. (Canada), | ||||||||||||||||
Gtd. Notes, 144A | 6.875 | 03/01/26 | 200 | 208,992 | ||||||||||||
Gtd. Notes, 144A | 7.500 | 04/01/25 | 200 | 207,076 | ||||||||||||
Freeport-McMoRan, Inc., Gtd. Notes | 4.375 | 08/01/28 | 50 | 53,282 | ||||||||||||
Hecla Mining Co., Gtd. Notes | 7.250 | 02/15/28 | 75 | 81,321 | ||||||||||||
Hudbay Minerals, Inc. (Canada), | ||||||||||||||||
Gtd. Notes, 144A | 4.500 | 04/01/26 | 25 | 25,337 | ||||||||||||
Gtd. Notes, 144A | 6.125 | 04/01/29 | 25 | 26,939 | ||||||||||||
Gtd. Notes, 144A | 7.625 | 01/15/25 | 50 | 52,083 | ||||||||||||
IAMGOLD Corp. (Canada), Gtd. Notes, 144A | 5.750 | 10/15/28 | 129 | 133,235 | ||||||||||||
New Gold, Inc. (Canada), | ||||||||||||||||
Gtd. Notes, 144A | 6.375 | 05/15/25 | 33 | 34,059 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.500 | 07/15/27 | 150 | 157,954 | ||||||||||||
Novelis Corp., | ||||||||||||||||
Gtd. Notes, 144A | 4.750 | 01/30/30 | 75 | 78,176 | ||||||||||||
Gtd. Notes, 144A | 5.875 | 09/30/26 | 250 | 260,765 | ||||||||||||
|
| |||||||||||||||
1,384,973 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 21 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Miscellaneous Manufacturer 1.7% | ||||||||||||||||
Amsted Industries, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.625 | % | 07/01/27 | 25 | $ | 26,505 | ||||||||||
Sr. Unsec’d. Notes, 144A | 4.625 | 05/15/30 | 160 | 167,218 | ||||||||||||
Bombardier, Inc. (Canada), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 7.500 | 12/01/24 | 400 | 375,538 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.500 | 03/15/25 | 25 | 22,864 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.875 | 04/15/27 | 100 | 89,820 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 8.750 | 12/01/21 | 250 | 259,685 | ||||||||||||
FXI Holdings, Inc., Sr. Sec’d. Notes, 144A | 7.875 | 11/01/24 | 25 | 25,445 | ||||||||||||
|
| |||||||||||||||
967,075 | ||||||||||||||||
Office & Business Equipment 0.1% | ||||||||||||||||
CDW LLC/CDW Finance Corp., Gtd. Notes | 3.250 | 02/15/29 | 75 | 73,825 | ||||||||||||
Oil & Gas 8.1% | ||||||||||||||||
Aethon United BR LP/Aethon United Finance Corp., Sr. Unsec’d. Notes, 144A | 8.250 | 02/15/26 | 75 | 77,998 | ||||||||||||
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp., Gtd. Notes(d) | 7.875 | 12/15/24 | 310 | 205 | ||||||||||||
Antero Resources Corp., | ||||||||||||||||
Gtd. Notes | 5.000 | 03/01/25 | 125 | 124,233 | ||||||||||||
Gtd. Notes | 5.625 | 06/01/23 | 25 | 25,039 | ||||||||||||
Gtd. Notes, 144A | 7.625 | 02/01/29 | 75 | 79,927 | ||||||||||||
Gtd. Notes, 144A | 8.375 | 07/15/26 | 125 | 137,067 | ||||||||||||
Apache Corp., Sr. Unsec’d. Notes | 5.350 | 07/01/49 | 50 | 49,802 | ||||||||||||
Ascent Resources Utica Holdings LLC/ARU Finance Corp., | ||||||||||||||||
Gtd. Notes, 144A | 9.000 | 11/01/27 | 62 | 79,412 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.000 | 11/01/26 | 200 | 201,083 | ||||||||||||
Chesapeake Energy Corp., | ||||||||||||||||
Gtd. Notes, 144A | 5.500 | 02/01/26 | 25 | 26,055 | ||||||||||||
Gtd. Notes, 144A | 5.875 | 02/01/29 | 25 | 26,686 | ||||||||||||
Citgo Holding, Inc., Sr. Sec’d. Notes, 144A | 9.250 | 08/01/24 | 175 | 172,240 | ||||||||||||
CITGO Petroleum Corp., Sr. Sec’d. Notes, 144A | 7.000 | 06/15/25 | 100 | 102,882 | ||||||||||||
CNX Resources Corp., Gtd. Notes, 144A | 7.250 | 03/14/27 | 125 | 133,870 | ||||||||||||
Comstock Resources, Inc., Sr. Unsec’d. Notes, 144A | 6.750 | 03/01/29 | 50 | 51,852 | ||||||||||||
Continental Resources, Inc., Gtd. Notes, 144A | 5.750 | 01/15/31 | 75 | 84,548 | ||||||||||||
CrownRock LP/CrownRock Finance, Inc., Sr. Unsec’d. Notes, 144A | 5.625 | 10/15/25 | 25 | 25,263 | ||||||||||||
Double Eagle III Midco 1 LLC/Double Eagle Finance Corp., Sr. Unsec’d. Notes, 144A | 7.750 | 12/15/25 | 175 | 187,617 |
See Notes to Financial Statements.
22 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Oil & Gas (cont'd.) | ||||||||||||||||
Endeavor Energy Resources LP/EER Finance, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.500 | % | 01/30/26 | 50 | $ | 51,076 | ||||||||||
Sr. Unsec’d. Notes, 144A | 5.750 | 01/30/28 | 225 | 237,957 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.625 | 07/15/25 | 35 | 36,751 | ||||||||||||
EQT Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 3.900 | 10/01/27 | 200 | 207,461 | ||||||||||||
Sr. Unsec’d. Notes | 5.000 | 01/15/29 | 25 | 27,451 | ||||||||||||
Hilcorp Energy I LP/Hilcorp Finance Co., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.000 | 12/01/24 | 100 | 101,639 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.750 | 10/01/25 | 125 | 127,515 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 5.750 | 02/01/29 | 25 | 25,494 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.000 | 02/01/31 | 25 | 25,421 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.250 | 11/01/28 | 25 | 26,114 | ||||||||||||
MEG Energy Corp. (Canada), | ||||||||||||||||
Gtd. Notes, 144A | 5.875 | 02/01/29 | 50 | 50,773 | ||||||||||||
Gtd. Notes, 144A | 7.125 | 02/01/27 | 150 | 157,456 | ||||||||||||
Sec’d. Notes, 144A | 6.500 | 01/15/25 | 25 | 25,803 | ||||||||||||
Nabors Industries Ltd. (Bermuda), | ||||||||||||||||
Gtd. Notes, 144A | 7.250 | 01/15/26 | 25 | 22,205 | ||||||||||||
Gtd. Notes, 144A | 7.500 | 01/15/28 | 25 | 21,579 | ||||||||||||
Nabors Industries, Inc., Gtd. Notes | 5.750 | 02/01/25 | 425 | 338,345 | ||||||||||||
Occidental Petroleum Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 2.700 | 02/15/23 | 150 | 146,613 | ||||||||||||
Sr. Unsec’d. Notes | 3.500 | 08/15/29 | 75 | 71,714 | ||||||||||||
Sr. Unsec’d. Notes | 4.100 | 02/15/47 | 25 | 21,248 | ||||||||||||
Sr. Unsec’d. Notes | 4.625 | 06/15/45 | 25 | 22,783 | ||||||||||||
Sr. Unsec’d. Notes(a) | 6.125 | 01/01/31 | 150 | 166,256 | ||||||||||||
Sr. Unsec’d. Notes | 6.450 | 09/15/36 | 100 | 114,155 | ||||||||||||
Sr. Unsec’d. Notes | 6.625 | 09/01/30 | 50 | 57,212 | ||||||||||||
Sr. Unsec’d. Notes | 8.875 | 07/15/30 | 136 | 173,933 | ||||||||||||
Precision Drilling Corp. (Canada), Gtd. Notes, 144A(a) | 7.125 | 01/15/26 | 75 | 72,689 | ||||||||||||
Range Resources Corp., | ||||||||||||||||
Gtd. Notes | 4.875 | 05/15/25 | 50 | 49,455 | ||||||||||||
Gtd. Notes | 5.000 | 03/15/23 | 75 | 75,402 | ||||||||||||
Gtd. Notes | 9.250 | 02/01/26 | 150 | 163,277 | ||||||||||||
Sunoco LP/Sunoco Finance Corp., | ||||||||||||||||
Gtd. Notes | 5.500 | 02/15/26 | 175 | 180,037 | ||||||||||||
Gtd. Notes, 144A | 4.500 | 05/15/29 | 50 | 49,999 | ||||||||||||
Transocean, Inc. (Cayman Islands), | ||||||||||||||||
Gtd. Notes, 144A | 7.250 | 11/01/25 | 85 | 56,947 | ||||||||||||
Gtd. Notes, 144A | 7.500 | 01/15/26 | 50 | 32,847 | ||||||||||||
Gtd. Notes, 144A | 8.000 | 02/01/27 | 25 | 15,766 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 23 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Oil & Gas (cont'd.) | ||||||||||||||||
WPX Energy, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.250 | % | 10/15/27 | 50 | $ | 53,506 | ||||||||||
Sr. Unsec’d. Notes | 5.750 | 06/01/26 | 110 | 115,585 | ||||||||||||
|
| |||||||||||||||
4,708,243 | ||||||||||||||||
Packaging & Containers 1.1% | ||||||||||||||||
ARD Finance SA (Luxembourg), Sr. Sec’d. Notes, Cash coupon 6.500% or PIK 7.250%, 144A | 6.500 | 06/30/27 | 200 | 211,512 | ||||||||||||
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging PLC, Sr. Unsec’d. Notes | 4.000 | 09/01/29 | 200 | 200,000 | ||||||||||||
Graham Packaging Co., Inc., Gtd. Notes, 144A | 7.125 | 08/15/28 | 10 | 10,821 | ||||||||||||
Intelligent Packaging Holdco Issuer LP (Canada), Sr. Unsec’d. Notes, Cash coupon 9.000% or PIK 9.750%, 144A | 9.000 | 01/15/26 | 75 | 75,953 | ||||||||||||
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co.-Issuer LLC (Canada), Sr. Sec’d. Notes, 144A | 6.000 | 09/15/28 | 25 | 26,120 | ||||||||||||
Owens-Brockway Glass Container, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 6.375 | 08/15/25 | 50 | 55,856 | ||||||||||||
Gtd. Notes, 144A | 6.625 | 05/13/27 | 75 | 80,955 | ||||||||||||
|
| |||||||||||||||
661,217 | ||||||||||||||||
Pharmaceuticals 3.1% | ||||||||||||||||
AdaptHealth LLC, | ||||||||||||||||
Gtd. Notes, 144A | 4.625 | 08/01/29 | 50 | 50,034 | ||||||||||||
Gtd. Notes, 144A | 6.125 | 08/01/28 | 95 | 100,901 | ||||||||||||
Bausch Health Americas, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 8.500 | 01/31/27 | 165 | 182,847 | ||||||||||||
Gtd. Notes, 144A | 9.250 | 04/01/26 | 125 | 138,551 | ||||||||||||
Bausch Health Cos., Inc. (Canada), | ||||||||||||||||
Gtd. Notes, 144A | 5.000 | 02/15/29 | 25 | 25,376 | ||||||||||||
Gtd. Notes, 144A | 5.250 | 01/30/30 | 375 | 381,001 | ||||||||||||
Gtd. Notes, 144A | 5.250 | 02/15/31 | 125 | 126,920 | ||||||||||||
Gtd. Notes, 144A | 6.250 | 02/15/29 | 415 | 442,273 | ||||||||||||
Gtd. Notes, 144A | 6.125 | 04/15/25 | 125 | 127,963 | ||||||||||||
Gtd. Notes, 144A | 7.000 | 01/15/28 | 125 | 135,104 | ||||||||||||
P&L Development LLC/PLD Finance Corp., Sr. Sec’d. Notes, 144A | 7.750 | 11/15/25 | 75 | 80,110 | ||||||||||||
|
| |||||||||||||||
1,791,080 |
See Notes to Financial Statements.
24 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Pipelines 3.5% | ||||||||||||||||
Antero Midstream Partners LP/Antero Midstream Finance Corp., | ||||||||||||||||
Gtd. Notes | 5.375 | % | 09/15/24 | 25 | $ | 25,275 | ||||||||||
Gtd. Notes, 144A | 5.750 | 01/15/28 | 125 | 125,918 | ||||||||||||
Gtd. Notes, 144A | 7.875 | 05/15/26 | 50 | 54,425 | ||||||||||||
Blue Racer Midstream LLC/Blue Racer Finance Corp., Sr. Unsec’d. Notes, 144A | 7.625 | 12/15/25 | 25 | 26,892 | ||||||||||||
Cheniere Energy Partners LP, Sr. Unsec’d. Notes, 144A | 4.000 | 03/01/31 | 100 | 100,578 | ||||||||||||
Cheniere Energy, Inc., Sr. Sec’d. Notes, 144A | 4.625 | 10/15/28 | 275 | 285,901 | ||||||||||||
DCP Midstream Operating LP, Gtd. Notes | 5.625 | 07/15/27 | 20 | 21,645 | ||||||||||||
Energy Transfer Operating LP, 5 Year CMT Index + 5.306% | 7.125 | (c) | 05/15/30 | (rr) | 50 | 48,343 | ||||||||||
EQM Midstream Partners LP, | ||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 07/15/23 | 17 | 17,528 | ||||||||||||
Sr. Unsec’d. Notes | 5.500 | 07/15/28 | 25 | 25,869 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.000 | 07/01/25 | 20 | 21,131 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.500 | 07/01/27 | 70 | 75,129 | ||||||||||||
Global Partners LP/GLP Finance Corp., Gtd. Notes | 6.875 | 01/15/29 | 75 | 81,131 | ||||||||||||
Hess Midstream Operations LP, Gtd. Notes, 144A | 5.125 | 06/15/28 | 50 | 51,611 | ||||||||||||
Rattler Midstream LP, Gtd. Notes, 144A | 5.625 | 07/15/25 | 15 | 15,658 | ||||||||||||
Rockies Express Pipeline LLC, | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 3.600 | 05/15/25 | 50 | 51,183 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 7.500 | 07/15/38 | 175 | 197,106 | ||||||||||||
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., | ||||||||||||||||
Gtd. Notes, 144A | 5.500 | 09/15/24 | 32 | 32,165 | ||||||||||||
Gtd. Notes, 144A | 5.500 | 01/15/28 | 100 | 100,099 | ||||||||||||
Gtd. Notes, 144A | 6.000 | 03/01/27 | 25 | 25,300 | ||||||||||||
Gtd. Notes, 144A | 6.000 | 12/31/30 | 25 | 24,934 | ||||||||||||
Gtd. Notes, 144A | 7.500 | 10/01/25 | 100 | 106,598 | ||||||||||||
Targa Resources Partners LP/Targa Resources Partners Finance Corp., | ||||||||||||||||
Gtd. Notes | 5.375 | 02/01/27 | 25 | 25,951 | ||||||||||||
Gtd. Notes | 5.875 | 04/15/26 | 100 | 104,159 | ||||||||||||
Gtd. Notes | 6.500 | 07/15/27 | 50 | 53,891 | ||||||||||||
Gtd. Notes, 144A | 4.000 | 01/15/32 | 50 | 49,021 | ||||||||||||
Gtd. Notes, 144A | 4.875 | 02/01/31 | 125 | 128,135 | ||||||||||||
Western Midstream Operating LP, | ||||||||||||||||
Sr. Unsec’d. Notes | 3.950 | 06/01/25 | 100 | 101,456 | ||||||||||||
Sr. Unsec’d. Notes | 4.350 | 02/01/25 | 50 | 51,186 | ||||||||||||
Sr. Unsec’d. Notes | 5.300 | 02/01/30 | 25 | 27,070 | ||||||||||||
|
| |||||||||||||||
2,055,288 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 25 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Real Estate 1.3% | ||||||||||||||||
Five Point Operating Co. LP/Five Point Capital Corp., Gtd. Notes, 144A | 7.875 | % | 11/15/25 | 202 | $ | 213,101 | ||||||||||
Greystar Real Estate Partners LLC, Sr. Sec’d. Notes, 144A | 5.750 | 12/01/25 | 150 | 154,549 | ||||||||||||
Howard Hughes Corp. (The), | ||||||||||||||||
Gtd. Notes, 144A | 4.125 | 02/01/29 | 25 | 24,814 | ||||||||||||
Gtd. Notes, 144A | 4.375 | 02/01/31 | 50 | 49,877 | ||||||||||||
Gtd. Notes, 144A | 5.375 | 08/01/28 | 95 | 99,884 | ||||||||||||
Hunt Cos., Inc., Sr. Sec’d. Notes, 144A | 6.250 | 02/15/26 | 175 | 179,551 | ||||||||||||
Realogy Group LLC/Realogy Co.-Issuer Corp., Gtd. Notes, 144A | 5.750 | 01/15/29 | 50 | 50,165 | ||||||||||||
|
| |||||||||||||||
771,941 | ||||||||||||||||
Real Estate Investment Trusts (REITs) 3.0% | ||||||||||||||||
Diversified Healthcare Trust, | ||||||||||||||||
Gtd. Notes | 9.750 | 06/15/25 | 250 | 281,456 | ||||||||||||
Sr. Unsec’d. Notes | 4.750 | 02/15/28 | 100 | 98,976 | ||||||||||||
ESH Hospitality, Inc., Gtd. Notes, 144A | 5.250 | 05/01/25 | 275 | 280,201 | ||||||||||||
MGM Growth Properties Operating Partnership LP/MGP Finance Co.-Issuer, Inc., | ||||||||||||||||
Gtd. Notes | 4.500 | 01/15/28 | 100 | 105,764 | ||||||||||||
Gtd. Notes, 144A | 4.625 | 06/15/25 | 10 | 10,598 | ||||||||||||
MPT Operating Partnership LP/MPT Finance Corp., | ||||||||||||||||
Gtd. Notes | 3.500 | 03/15/31 | 25 | 25,457 | ||||||||||||
Gtd. Notes | 4.625 | 08/01/29 | 100 | 107,562 | ||||||||||||
Gtd. Notes | 5.000 | 10/15/27 | 100 | 106,101 | ||||||||||||
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co.-Issuer, | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 5.875 | 10/01/28 | 175 | 184,466 | ||||||||||||
Sr. Sec’d. Notes, 144A | 7.500 | 06/01/25 | 130 | 140,917 | ||||||||||||
RHP Hotel Properties LP/RHP Finance Corp., Gtd. Notes, 144A | 4.500 | 02/15/29 | 25 | 24,691 | ||||||||||||
SBA Communications Corp., Sr. Unsec’d. Notes, 144A | 3.125 | 02/01/29 | 25 | 24,297 | ||||||||||||
VICI Properties LP/VICI Note Co., Inc., | ||||||||||||||||
Gtd. Notes, 144A | 3.750 | 02/15/27 | 100 | 101,417 | ||||||||||||
Gtd. Notes, 144A | 4.125 | 08/15/30 | 200 | 208,421 | ||||||||||||
Gtd. Notes, 144A | 4.625 | 12/01/29 | 40 | 41,959 | ||||||||||||
|
| |||||||||||||||
1,742,283 |
See Notes to Financial Statements.
26 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Retail 3.1% | ||||||||||||||||
1011778 BC ULC/New Red Finance, Inc. (Canada), Sec’d. Notes, 144A | 4.000 | % | 10/15/30 | 375 | $ | 365,685 | ||||||||||
BCPE Ulysses Intermediate, Inc., Sr. Unsec’d. Notes, Cash coupon 7.750% or PIK 8.500%, 144A | 7.750 | 04/01/27 | 25 | 25,437 | ||||||||||||
Brinker International, Inc., Sr. Unsec’d. Notes(a) | 3.875 | 05/15/23 | 175 | 175,424 | ||||||||||||
Caleres, Inc., Gtd. Notes | 6.250 | 08/15/23 | 75 | 75,319 | ||||||||||||
eG Global Finance PLC (United Kingdom), Sr. Sec’d. Notes, 144A | 8.500 | 10/30/25 | 200 | 212,351 | ||||||||||||
Ferrellgas Partners LP/Ferrellgas Partners Finance Corp.(d), | ||||||||||||||||
Sr. Unsec’d. Notes | 8.625 | 06/15/20 | 150 | 86,420 | ||||||||||||
Sr. Unsec’d. Notes | 8.625 | 06/15/20 | 50 | 25,631 | ||||||||||||
Foundation Building Materials, Inc., Gtd. Notes, 144A | 6.000 | 03/01/29 | 25 | 24,922 | ||||||||||||
Golden Nugget, Inc., Sr. Unsec’d. Notes, 144A | 6.750 | 10/15/24 | 125 | 127,054 | ||||||||||||
LBM Acquisition LLC, Gtd. Notes, 144A | 6.250 | 01/15/29 | 25 | 25,350 | ||||||||||||
Murphy Oil USA, Inc., Gtd. Notes, 144A | 3.750 | 02/15/31 | 25 | 24,985 | ||||||||||||
Park River Holdings, Inc., Gtd. Notes, 144A | 5.625 | 02/01/29 | 125 | 122,639 | ||||||||||||
Sally Holdings LLC/Sally Capital, Inc., | ||||||||||||||||
Gtd. Notes | 5.500 | 11/01/23 | 100 | 100,907 | ||||||||||||
Sec’d. Notes, 144A | 8.750 | 04/30/25 | 75 | 83,294 | ||||||||||||
Suburban Propane Partners LP/Suburban Energy Finance Corp., | ||||||||||||||||
Sr. Unsec’d. Notes | 5.500 | 06/01/24 | 100 | 101,429 | ||||||||||||
Sr. Unsec’d. Notes | 5.750 | 03/01/25 | 50 | 50,808 | ||||||||||||
Sr. Unsec’d. Notes | 5.875 | 03/01/27 | 125 | 130,912 | ||||||||||||
White Cap Buyer LLC, Sr. Unsec’d. Notes, 144A | 6.875 | 10/15/28 | 50 | 53,169 | ||||||||||||
|
| |||||||||||||||
1,811,736 | ||||||||||||||||
Semiconductors 0.3% | ||||||||||||||||
Microchip Technology, Inc., Gtd. Notes, 144A | 4.250 | 09/01/25 | 195 | 203,867 | ||||||||||||
Software 1.5% | ||||||||||||||||
Black Knight InfoServ LLC, Gtd. Notes, 144A | 3.625 | 09/01/28 | 200 | 198,548 | ||||||||||||
Boxer Parent Co., Inc., Sr. Sec’d. Notes, 144A | 7.125 | 10/02/25 | 150 | 162,133 | ||||||||||||
BY Crown Parent LLC/BY Bond Finance, Inc., Sr. Sec’d. Notes, 144A | 4.250 | 01/31/26 | 145 | 149,312 | ||||||||||||
Dun & Bradstreet Corp. (The), Sr. Sec’d. Notes, 144A | 6.875 | 08/15/26 | 225 | 241,281 | ||||||||||||
Rackspace Technology Global, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 5.375 | 12/01/28 | 25 | 25,809 | ||||||||||||
Sr. Sec’d. Notes, 144A | 3.500 | 02/15/28 | 50 | 49,095 | ||||||||||||
Rocket Software, Inc., Sr. Unsec’d. Notes, 144A | 6.500 | 02/15/29 | 25 | 24,987 | ||||||||||||
|
| |||||||||||||||
851,165 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 27 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Telecommunications 6.4% | ||||||||||||||||
Altice France SA/France (France), Sr. Sec’d. Notes, 144A | 7.375 | % | 05/01/26 | 200 | $ | 208,681 | ||||||||||
CommScope, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 7.125 | 07/01/28 | 45 | 47,193 | ||||||||||||
Sr. Sec’d. Notes, 144A | 5.500 | 03/01/24 | 100 | 102,807 | ||||||||||||
Sr. Sec’d. Notes, 144A | 6.000 | 03/01/26 | 100 | 105,122 | ||||||||||||
Digicel Group 0.5 Ltd. (Bermuda), Sr. Sec’d. Notes, Cash coupon 8.000% and PIK 2.000% or PIK 10.000% | 10.000 | 04/01/24 | 299 | 294,360 | ||||||||||||
Digicel Holdings Bermuda Ltd./Digicel International Finance Ltd. (Multinational), | ||||||||||||||||
Gtd. Notes, Cash coupon 6.000% or PIK 7.000%, 144A | 13.000 | 12/31/25 | 288 | 292,528 | ||||||||||||
Sr. Sec’d. Notes, 144A | 8.750 | 05/25/24 | 250 | 261,857 | ||||||||||||
Digicel Ltd. (Bermuda), Gtd. Notes, 144A | 6.750 | 03/01/23 | 400 | 367,951 | ||||||||||||
Intelsat Jackson Holdings S.A. (Luxembourg)(d), | ||||||||||||||||
Gtd. Notes | 5.500 | 08/01/23 | 65 | 41,602 | ||||||||||||
Sr. Sec’d. Notes, 144A | 8.000 | 02/15/24 | 50 | 51,643 | ||||||||||||
Gtd. Notes, 144A | 9.750 | 07/15/25 | 295 | 189,084 | ||||||||||||
Intelsat Luxembourg SA (Luxembourg), Gtd. Notes(d) | 8.125 | 06/01/23 | 50 | 2,378 | ||||||||||||
Intrado Corp., Gtd. Notes, 144A | 8.500 | 10/15/25 | 95 | 94,696 | ||||||||||||
Level 3 Financing, Inc., | ||||||||||||||||
Gtd. Notes, 144A | 3.625 | 01/15/29 | 50 | 48,962 | ||||||||||||
Gtd. Notes, 144A | 3.750 | 07/15/29 | 75 | 74,779 | ||||||||||||
Gtd. Notes, 144A | 4.250 | 07/01/28 | 100 | 101,418 | ||||||||||||
Gtd. Notes, 144A | 4.625 | 09/15/27 | 100 | 103,564 | ||||||||||||
Lumen Technologies, Inc., | ||||||||||||||||
Sr. Unsec’d. Notes | 7.600 | 09/15/39 | 152 | 181,846 | ||||||||||||
Sr. Unsec’d. Notes | 7.650 | 03/15/42 | 190 | 227,272 | ||||||||||||
Sprint Corp., | ||||||||||||||||
Gtd. Notes | 7.125 | 06/15/24 | 142 | 163,696 | ||||||||||||
Gtd. Notes | 7.625 | 03/01/26 | 100 | 122,682 | ||||||||||||
T-Mobile USA, Inc., Gtd. Notes | 4.750 | 02/01/28 | 250 | 264,513 | ||||||||||||
Viasat, Inc., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 5.625 | 04/15/27 | 80 | 83,837 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.500 | 07/15/28 | 20 | 21,385 | ||||||||||||
Windstream Escrow LLC/Windstream Escrow Finance Corp., Sr. Sec’d. Notes, 144A | 7.750 | 08/15/28 | 40 | 40,982 | ||||||||||||
Zayo Group Holdings, Inc., | ||||||||||||||||
Sr. Sec’d. Notes, 144A | 4.000 | 03/01/27 | 75 | 74,640 | ||||||||||||
Sr. Unsec’d. Notes, 144A | 6.125 | 03/01/28 | 175 | 180,647 | ||||||||||||
|
| |||||||||||||||
3,750,125 |
See Notes to Financial Statements.
28 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Transportation 0.5% | ||||||||||||||||
XPO Logistics, Inc., Gtd. Notes, 144A | 6.250 | % | 05/01/25 | 300 | $ | 322,141 | ||||||||||
|
| |||||||||||||||
TOTAL CORPORATE BONDS | 54,062,128 | |||||||||||||||
|
| |||||||||||||||
Shares | ||||||||||||||||
COMMON STOCKS 1.2% | ||||||||||||||||
Oil, Gas & Consumable Fuels 1.2% | ||||||||||||||||
Chesapeake Energy Corp.* |
| 11,790 | 520,882 | |||||||||||||
Chesapeake Energy Corp. Backstop Commitment* | 68 | 2,868 | ||||||||||||||
Extraction Oil & Gas, Inc.* | 4,903 | 164,987 | ||||||||||||||
|
| |||||||||||||||
TOTAL COMMON STOCKS |
| 688,737 | ||||||||||||||
|
| |||||||||||||||
Units | ||||||||||||||||
WARRANT 0.0% | ||||||||||||||||
Consumer Discretionary 0.0% | ||||||||||||||||
CEC Entertainment Co. LLC expiring 02/15/22* |
| 2,061 | 1,855 | |||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS |
| 56,928,914 | ||||||||||||||
|
| |||||||||||||||
Shares | ||||||||||||||||
SHORT-TERM INVESTMENTS 6.4% | ||||||||||||||||
AFFILIATED MUTUAL FUNDS 6.3% | ||||||||||||||||
PGIM Core Ultra Short Bond Fund(wa) |
| 2,709,463 | 2,709,463 | |||||||||||||
PGIM Institutional Money Market Fund | 960,801 | 960,320 | ||||||||||||||
|
| |||||||||||||||
TOTAL AFFILIATED MUTUAL FUNDS |
| 3,669,783 | ||||||||||||||
|
|
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 29 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
TIME DEPOSIT 0.1% | ||||||||||||||||
Skandinaviska Enskilda Banken AB (Sweden) | 0.005 | % | 03/01/21 | 56 | $ | 56,350 | ||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS |
| 3,726,133 | ||||||||||||||
TOTAL INVESTMENTS 103.9% |
| 60,655,047 | ||||||||||||||
Liabilities in excess of other assets (3.9)% |
| (2,300,207 | ) | |||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% |
| $ | 58,354,840 | |||||||||||||
|
|
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. |
CDX-Credit Derivative Index |
LIBOR-London Interbank Offered Rate |
PIK-Payment-in-Kind |
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $941,936; cash collateral of $960,284 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(c) | Variable rate instrument. The interest rate shown reflects the rate in effect at February 28, 2021. |
(d) | Represents issuer in default on interest payments and/or principal repayment. Non-income producing security. Such security may be post-maturity. |
(rr) | Perpetual security. Maturity date represents next call date. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
* | Non-income producing security. |
See Notes to Financial Statements.
30 |
Futures contracts outstanding at February 28, 2021:
Number of contracts | Type | Expiration Date | Current Notional Amount | Value / Unrealized Appreciation (Depreciation) | ||||||||||||
Long Positions: | ||||||||||||||||
9 | 2 Year U.S. Treasury Notes | Jun. 2021 | $ | 1,986,891 | $ | (1,390 | ) | |||||||||
12 | 10 Year U.S. Treasury Notes | Jun. 2021 | 1,592,625 | (18,997 | ) | |||||||||||
23 | 5 Year U.S. Treasury Notes | Jun. 2021 | 2,851,281 | (24,643 | ) | |||||||||||
|
| |||||||||||||||
(45,030 | ) | |||||||||||||||
|
| |||||||||||||||
Short Positions: | ||||||||||||||||
6 | U.S. Long Bond | Jun. 2021 | 955,313 | 15,242 | ||||||||||||
5 | U.S. Ultra Bond | Jun. 2021 | 945,313 | 4,797 | ||||||||||||
|
| |||||||||||||||
20,039 | ||||||||||||||||
|
| |||||||||||||||
$ | (24,991 | ) | ||||||||||||||
|
|
Credit default swap agreement outstanding at February 28, 2021:
Reference Entity/ Obligation | Termination Date | Fixed Rate | Notional Amount (000)#(3) | Value at Trade Date | Value at February 28, 2021 | Unrealized Appreciation (Depreciation) | ||||||||||||||||
Centrally Cleared Credit Default Swap Agreement on credit indices-Buy Protection(1): |
| |||||||||||||||||||||
CDX.NA.HY.35-V1 | 12/20/25 | 5.000% | 360 | $ | (26,287 | ) | $ | (33,419 | ) | $ | (7,132 | ) |
The Fund entered into credit default swaps (“CDS”) to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases.
(1) | If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(2) | If the Fund is a seller of protection, it receives the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
(3) | Notional amount represents the maximum potential amount the Fund could be required to pay as a |
seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 31 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Credit default swap agreement outstanding at February 28, 2021 (continued):
(4) | Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements where the Fund is the seller of protection as of the reporting date serve as an indicator of the current status of the payment/ performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include up-front payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. |
* | When an implied credit spread is not available, reference the fair value of credit default swap agreements on credit indices and asset-backed securities. Where the Fund is the seller of protection, it serves as an indicator of the current status of the payment/performance risk and represents the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the reporting date. Increasing fair value in absolute terms, when compared to the notional amount of the swap, represents a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. |
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. | $500,000 | $ | — |
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.
See Notes to Financial Statements.
32 |
The following is a summary of the inputs used as of February 28, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Bank Loans | $ | — | $ | 2,176,194 | $ | — | ||||||
Corporate Bonds | — | 54,062,128 | — | |||||||||
Common Stocks | 685,869 | 2,868 | — | |||||||||
Warrant | 1,855 | — | — | |||||||||
Affiliated Mutual Funds | 3,669,783 | — | — | |||||||||
Time Deposit | — | 56,350 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 4,357,507 | $ | 56,297,540 | $ | — | ||||||
|
|
|
|
|
| |||||||
Other Financial Instruments* | ||||||||||||
Assets | ||||||||||||
Futures Contracts | $ | 20,039 | $ | — | $ | — | ||||||
|
|
|
|
|
| |||||||
Total | $ | 20,039 | $ | — | $ | — | ||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
Futures Contracts | $ | (45,030 | ) | $ | — | $ | — | |||||
Centrally Cleared Credit Default Swap Agreement | — | (7,132 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Total | $ | (45,030 | ) | $ | (7,132 | ) | $ | — | ||||
|
|
|
|
|
|
* | 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. |
Industry Classification:
The industry classification of investments and other liabilities in excess of assets shown as a percentage of net assets as of February 28, 2021 were as follows:
Oil & Gas | 8.4 | % | ||
Media | 8.4 | |||
Telecommunications | 6.7 | |||
Affiliated Mutual Funds (1.7% represents investments purchased with collateral from securities on loan) | 6.3 | |||
Entertainment | 5.0 | |||
Healthcare-Services | 4.5 | |||
Home Builders | 4.0 | |||
Electric | 4.0 | |||
Commercial Services | 3.8 | |||
Pipelines | 3.5 | |||
Auto Manufacturers | 3.3 | |||
Retail | 3.1 | |||
Pharmaceuticals | 3.1 | |||
Real Estate Investment Trusts (REITs) | 3.0 | |||
Diversified Financial Services | 2.7 | |||
Lodging | 2.6 | |||
Software | 2.6 | |||
Chemicals | 2.5 | |||
Building Materials | 2.4 | |||
Mining | 2.4 | |||
Aerospace & Defense | 2.0 | |||
Computers | 1.9 |
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 33 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Industry Classification (cont’d.)
Miscellaneous Manufacturer | 1.7 | % | ||
Food | 1.6 | |||
Auto Parts & Equipment | 1.4 | |||
Real Estate | 1.3 | |||
Oil, Gas & Consumable Fuels | 1.2 | |||
Packaging & Containers | 1.1 | |||
Gas | 0.9 | |||
Apparel | 0.7 | |||
Advertising | 0.6 | |||
Engineering & Construction | 0.6 | |||
Distribution/Wholesale | 0.6 | |||
Transportation | 0.5 | |||
Diversified/Conglomerate Services | 0.5 | |||
Electrical Component & Equipment | 0.5 | |||
Leisure Time | 0.4 | |||
Iron/Steel | 0.4 | |||
Infrastructure Software | 0.4 | |||
Machinery-Diversified | 0.4 | |||
Semiconductors | 0.3 | |||
Specialty Chemicals | 0.3 | |||
Household Products/Wares | 0.3 | |||
Energy-Alternate Sources | 0.3 | |||
Banks | 0.3 | |||
Electric & Gas Marketing | 0.3 | |||
Agriculture | 0.2 | |||
Industrial Services | 0.2 | |||
Electronics | 0.2 | |||
Internet | 0.2 | |||
Office & Business Equipment | 0.1 | |||
Time Deposit | 0.1 | |||
Airlines | 0.1 | |||
Consumer Discretionary | 0.0 | * | ||
|
| |||
103.9 | ||||
Liabilities in excess of other assets | (3.9 | ) | ||
|
| |||
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 types of risk associated with these derivative instruments are credit contracts risk and interest rate contracts risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. 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.
Fair values of derivative instruments as of February 28, 2021 as presented in the Statement of Assets and Liabilities:
Derivatives not accounted for as hedging instruments, carried at fair value | Asset Derivatives | Liability Derivatives | ||||||||||
Statement of Assets and | Fair Value | Statement of Assets and | Fair Value | |||||||||
Interest rate contracts | Due from/to broker—variation margin futures* | $ | 20,039 | Due from/to broker—variation margin futures* | $ | (45,030 | ) | |||||
Credit Contracts | Due from/to broker—variation margin swaps* | — | Due from/to broker—variation margin swaps* | (7,132 | ) | |||||||
|
|
|
| |||||||||
$ | 20,039 | $ | (52,162 | ) | ||||||||
|
|
|
|
See Notes to Financial Statements.
34 |
* | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and 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, 2021 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | ||||||||
Derivatives not accounted for as hedging | Futures | Swaps | ||||||
Credit contracts | $ | — | $ | (202,497 | ) | |||
Interest rate contracts | 66,510 | — | ||||||
|
|
|
|
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||||||
Derivatives not accounted for as hedging | Futures | Swaps | ||||||
Credit contracts | $ | — | $ | 251,744 | ||||
Interest rate contracts | (31,572 | ) | — | |||||
|
|
|
|
For the period ended February 28, 2021 the Fund’s average volume of derivative activities is as follows:
Futures Contracts-Long Positions(1) | Futures Contracts-Short Positions(1) | Credit Default Swap Agreements(1) | ||||||||
$ | 4,747,716 | $ | 1,243,760 | $ | 1,372,933 |
(1) | Notional Amount in USD. |
Average volume is based on average quarter end balances as noted for the six months ended February 28, 2021.
Financial Instruments/Transactions- Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 35 |
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
and related netting arrangements for financial instruments/transactions, where the legal right to set-off exists, is presented in the summary below:
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||||||||
Securities on Loan | $ | 941,936 | $ | (941,936 | ) | $ | — | |||||
|
|
|
|
|
|
(1) | Collateral amount disclosed by the Fund is limited to the market value of the financial instruments/transactions. |
See Notes to Financial Statements.
36 |
Statement of Assets & Liabilities (unaudited)
as of February 28, 2021
Assets |
| |||
Investments at value, including securities on loan of $941,936: |
| |||
Unaffiliated investments (cost $55,612,368) | $ | 56,985,264 | ||
Affiliated investments (cost $3,669,851) | 3,669,783 | |||
Interest and dividends receivable | 789,153 | |||
Deposit with broker for centrally cleared/exchange-traded derivatives | 500,000 | |||
Receivable for investments sold | 379,494 | |||
|
| |||
Total Assets | 62,323,694 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 2,964,849 | |||
Payable to broker for collateral for securities on loan | 960,284 | |||
Management fee payable | 21,552 | |||
Due to broker—variation margin futures | 19,234 | |||
Due to broker—variation margin swaps | 685 | |||
Other liabilities | 2,250 | |||
|
| |||
Total Liabilities | 3,968,854 | |||
|
| |||
Net Assets | $ | 58,354,840 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 1,425 | ||
Paid-in capital in excess of par | 56,656,789 | |||
Total distributable earnings (loss) | 1,696,626 | |||
|
| |||
Net assets, February 28, 2021 | $ | 58,354,840 | ||
|
| |||
Net asset value, offering price and redemption price per share, ($58,354,840 / 1,425,000 shares of common stock issued and outstanding) | $ | 40.95 | ||
|
|
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 37 |
Statement of Operations (unaudited)
Six Months Ended February 28, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 1,384,795 | ||
Affiliated dividend income | 1,462 | |||
Income from securities lending, net (including affiliated income of $805) | 959 | |||
|
| |||
Total income | 1,387,216 | |||
|
| |||
Expenses | ||||
Management fee | 128,816 | |||
|
| |||
Total expenses | 128,816 | |||
|
| |||
Net investment income (loss) | 1,258,400 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(215)) | 513,213 | |||
Futures transactions | 66,510 | |||
Swap agreement transactions | (202,497 | ) | ||
|
| |||
377,226 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $(68)) | 1,613,962 | |||
Futures | (31,572 | ) | ||
Swap agreements | 251,744 | |||
|
| |||
1,834,134 | ||||
|
| |||
Net gain (loss) on investment transactions | 2,211,360 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 3,469,760 | ||
|
|
See Notes to Financial Statements.
38 |
Statements of Changes in Net Assets
Six Months Ended February 28, 2021 (unaudited) | Year Ended August 31, 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 1,258,400 | $ | 1,869,520 | ||||
Net realized gain (loss) on investments | 377,226 | 729,195 | ||||||
Net change in unrealized appreciation (depreciation) on investments | 1,834,134 | (645,569 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 3,469,760 | 1,953,146 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | (2,044,656 | ) | (2,177,655 | ) | ||||
|
|
|
| |||||
Fund share transactions | ||||||||
Net proceeds from shares sold | 40,345,589 | 7,569,903 | ||||||
Cost of shares purchased | (18,410,215 | ) | — | |||||
|
|
|
| |||||
Net increase (decrease) in net assets from Fund | 21,935,374 | 7,569,903 | ||||||
|
|
|
| |||||
Total increase (decrease) | 23,360,478 | 7,345,394 | ||||||
Net Assets: | ||||||||
Beginning of period | 34,994,362 | 27,648,968 | ||||||
|
|
|
| |||||
End of period | $ | 58,354,840 | $ | 34,994,362 | ||||
|
|
|
|
See Notes to Financial Statements.
PGIM Active High Yield Bond ETF | 39 |
Notes to Financial Statements (unaudited)
1. Organization
PGIM ETF Trust (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (“1940 Act”). The Trust was organized as a Delaware statutory trust on October 23, 2017 and currently consists of six separate series: PGIM Ultra Short Bond ETF, PGIM Active High Yield Bond ETF, PGIM QMA Strategic Alpha Large-Cap Core ETF, PGIM QMA Strategic Alpha Small-Cap Growth ETF, PGIM QMA Strategic Alpha Small-Cap Value ETF and PGIM QMA Strategic Alpha International Equity ETF. Each series operates as an exchange-traded fund.
These financial statements relate only to PGIM Active High Yield Bond ETF (the “Fund”). The Fund is classified as a diversified fund for purposes of the 1940 Act.
The investment objective of the Fund is to seek total return through a combination of current income and capital appreciation.
2. 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 is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). 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 as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Fund’s investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. 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. 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. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
40 |
For the fiscal reporting year 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 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.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, 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 in open-end funds (other than exchange-traded 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
PGIM Active High Yield Bond ETF | 41 |
Notes to Financial Statements (unaudited) (continued)
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.
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. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
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. 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.
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.
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
42 |
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.
Bank Loans: The Fund invested in bank loans. Bank loans include fixed and floating rate loans that are privately negotiated between a corporate borrower and one or more financial institutions, including, but not limited to, term loans, revolvers, and other instruments issued in the bank loan market. The Fund acquires interests in loans directly (by way of assignment from the selling institution) and/or indirectly (by way of the purchase of a participation interest from the selling institution). Under a bank loan assignment, the Fund generally will succeed to all the rights and obligations of an assigning lending institution and becomes a lender under the loan agreement with the relevant borrower in connection with that loan. Under a bank loan participation, the Fund generally will have a contractual relationship only with the lender, not with the relevant borrower. As a result, the Fund generally will have the right to receive payments of principal, interest, and any fees to which it is entitled only from the lender selling the participation and only upon receipt by the lender of the payments from the relevant borrower. The Fund may not directly benefit from the collateral supporting the debt obligation in which it has purchased the participation. As a result, the Fund will assume the credit risk of both the borrower and the institution selling the participation to the Fund.
Swap Agreements: The Fund entered 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 a 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. The cash amounts pledged for swaps contracts are considered restricted cash and are included in “Due from broker-variation margin swaps” and “Deposit with broker for centrally cleared/exchange-traded derivatives” in the Statement of Assets and Liabilities.
Credit Default Swaps (“CDS”): CDS involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified payment in the event of a default or as a result of a default (collectively a “credit event”) for the referenced entity (typically corporate issues or sovereign issues of an emerging country) on its obligation; or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index.
PGIM Active High Yield Bond ETF | 43 |
Notes to Financial Statements (unaudited) (continued)
The Fund is subject to credit risk in the normal course of pursuing its investment objectives, and as such, has entered into CDS contracts to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases. The Fund’s maximum risk of loss from counterparty credit risk for purchased CDS is the inability of the counterparty to honor the contract up to the notional value due to a credit event.
As a seller of protection on credit default swap agreements, the Fund generally receives an agreed upon payment from the buyer of protection throughout the term of the swap, provided no credit event occurs. As the seller, the Fund effectively increases its investment risk because, in addition to its total net assets, the Fund may be subject to investment exposure on the notional amount of the swap.
The maximum amount of the payment that the Fund, as a seller of protection, could be required to make under a credit default swap agreement would be equal to the notional amount of the underlying security or index contract as a result of a credit event. This potential amount will be partially offset by any recovery values of the respective referenced obligations, or net amounts received from the settlement of buy protection credit default swap agreements which the Fund entered into for the same referenced entity or index. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements where the Fund is the seller of protection as of period end are disclosed in the footnotes to the Schedule of Investments, if applicable. These spreads serve as indicators of the current status of the payment/performance risk and represent the likelihood of default risk for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. Wider credit spreads and increased market value in absolute terms, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
Payment-In-Kind: The Fund invests in the open market or receive pursuant to debt restructuring, securities that pay-in-kind (PIK) the interest due on such debt instruments. The PIK interest, computed at the contractual rate specified, is added to the existing
44 |
principal balance of the debt when issued bonds have same terms as the bond or recorded as a separate bond when terms are different from the existing debt, and is recorded as interest income.
Master Netting Arrangements: The Trust, on behalf of the Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Fund lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based upon the nature of the payment on the Statement of Operations. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
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 the ex-date, or for certain foreign securities, when the Fund becomes aware of such dividends.
PGIM Active High Yield Bond ETF | 45 |
Notes to Financial Statements (unaudited) (continued)
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 pay dividends from net investment income monthly and distributions from net realized capital and currency gains, if any, 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 the ex-date. Permanent GAAP/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-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.
3. Agreements
Pursuant to a management agreement with the Trust on behalf of the Fund (the Management Agreement), PGIM Investments manages each Fund’s investment operations and administers its business affairs. PGIM Investments is also responsible for supervising each Fund’s subadviser.
Pursuant to the management agreement relating to the Fund, there is a unitary fee structure for the funds whereby PGIM Investments is responsible for substantially all expenses of the Fund, except taxes, brokerage expenses, interest expenses, distribution fees or expenses, expenses incident to shareholder meetings and extraordinary expenses. The Fund may also pay for any costs or expenses of investing in other funds. For more information on the unitary management fee structure please refer to the Fund’s Statement of Additional Information.
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 contractually
46 |
agreed, beginning from the inception of the Fund, to waive any management fees it receives from the Fund in an amount equal to the subadvisory fees paid by the Fund to the PGIM Institutional Money Market Fund due to the Fund’s investment of its excess overnight cash in the PGIM Institutional Money Market Fund. This waiver will remain in effect for as long as the Fund remains invested or intends to invest 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 business unit PGIM Fixed Income. The Manager pays for the services of the subadviser.
Brown Brothers Harriman & Co. (“BBH”) serves as the Custodian, Transfer Agent, Administrative Agent and Securities Lending Agent for the Trust. The Manager is responsible for compensating BBH under the Custodian and Administrative and Transfer Agency Agreements. As securities lending agent, BBH is responsible for marketing to approved borrowers available securities from the Fund’s portfolio. BBH receives as compensation for its services a portion of the amount earned by the Fund for lending securities.
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. 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 Investments, PGIM, Inc. and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
The Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-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
PGIM Active High Yield Bond ETF | 47 |
Notes to Financial Statements (unaudited) (continued)
solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. For the period ended February 28, 2021, no 17a- 7 transactions were entered into by the Fund.
5. 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, 2021, were $52,069,522 and $28,623,637 respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the period ended February 28, 2021, is presented as follows:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||
Short-Term Investments—Affiliated Mutual Funds: | ||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund(1)(wa) | ||||||||||||||||||||||||||||
$291,324 | $ | 34,361,462 | $ | 31,943,323 | $ | — | $ | — | $ | 2,709,463 | 2,709,463 | $ | 1,462 | |||||||||||||||
PGIM Institutional Money Market Fund(1)(b)(wa) | ||||||||||||||||||||||||||||
— | 6,063,475 | 5,102,872 | (68 | ) | (215 | ) | 960,320 | 960,801 | 805 | (2) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||
$291,324 | $ | 40,424,937 | $ | 37,046,195 | $ | (68 | ) | $ | (215 | ) | $ | 3,669,783 | 3,670,264 | $ | 2,267 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
(b) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
6. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of February 28, 2021 were as follows:
Tax Basis | $ | 59,374,129 | ||
|
| |||
Gross Unrealized Appreciation | 2,390,916 | |||
Gross Unrealized Depreciation | (1,142,121 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 1,248,795 | ||
|
|
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
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
48 |
tax is required in the Fund’s financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Fund’s U.S. federal and state tax returns for each of the two fiscal years up to the most recent fiscal year ended August 31, 2020 are subject to such review.
7. 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 aggregations of a specified number of shares called a “Creation Unit”. An Authorized Participant is a member or participant of a clearing agency registered with the SEC, which has a written agreement with a Fund or one of its service providers that allows the Authorized Participant to place orders for the purchase and redemption of Creation Units.
A creation transaction, which is subject to acceptance by the Distributor and a Fund, generally takes place when an Authorized Participant deposits into a Fund a designated portfolio of securities, assets or other positions (a “creation basket”, and an amount of cash (including any cash representing the value of substituted securities, assets or other positions), if any, which together approximate the holdings of the Fund in exchange for a specified number of Creation Units. Similarly, shares can be redeemed only in Creation Units, generally for a designated portfolio of securities, assets or other propositions (the “redemption basket”) held by a Fund and an amount of cash (including any portion of such securities for which cash may be substituted). The Fund may, in certain circumstances, offer Creation Units partially or solely for cash. Except when aggregated in Creation Units, shares are not redeemable by the Fund. Creation and redemption baskets may differ and the Fund may accept “custom baskets”.
A Creation Unit consists of 25,000 shares of the Fund. Authorized Participants generally are required to pay a fixed creation transaction fee and/or a fixed redemption transaction fee, as applicable, for each transaction in a Creation Unit regardless of the number of Creation Units created or redeemed on that day. The Fund may adjust the transaction fee from time to time. An additional charge or a variable charge may be applied to certain creation and redemption transactions, including non-standard orders and whole or partial cash purchases or redemptions when deemed appropriate.
The Trust is authorized to issue an unlimited number of shares of beneficial interest, $0.001 par value per share.
PGIM Active High Yield Bond ETF | 49 |
Notes to Financial Statements (unaudited) (continued)
As of February 28, 2021, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Fund as follows:
Fund | Number of Shares | Percentage of Outstanding Shares | ||||||
PGIM Active High Yield Bond ETF | 625,000 | 44.1 | % |
At the reporting period end, the number of shareholders holding greater than 5% of the Fund is as follows:
Affiliated | Unaffiliated | |||||||||||||||
Fund | Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | ||||||||||||
PGIM Active High Yield Bond ETF | 1 | 44.1 | % | 2 | 27.9 | % |
Transactions in shares of beneficial interest were as follows:
Reporting period ended February 28, 2021:
Shares | Amount | |||||||
Shares sold | 1,000,000 | $ | 40,345,589 | |||||
Shares purchased | (450,000 | ) | (18,410,215 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 550,000 | $ | 21,935,374 | |||||
|
|
|
|
Reporting period ended August 31, 2020:
Shares | Amount | |||||||
Shares sold | 200,000 | $ | 7,569,903 | |||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 200,000 | $ | 7,569,903 | |||||
|
|
|
|
8. Borrowings
The Trust, on behalf of the Fund, along with other affiliated registered investment companies (the “Participating 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 table below provides details of the current SCA in effect at the reporting period-end as well as the prior SCA.
Current SCA | Prior SCA | |||
Term of Commitment | 10/2/2020 – 9/30/2021 | 10/3/2019 – 10/1/2020 | ||
Total Commitment | $1,200,000,000 | $1,222,500,000* |
50 |
Current SCA | Prior SCA | |||
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | 0.15% | ||
Annualized Interest Rate on Borrowings | 1.30% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent | 1.20% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
* | Effective March 31, 2020, the SCA’s total commitment was increased from $900,000,000 to $1,162,500,000 and subsequently, effective April 7, 2020 was increased to $1,222,500,000. |
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 Participating Funds in the SCA equitably.
The Fund did not utilize the SCA during the reporting period ended February 28, 2021.
9. Risks of Investing in the Fund
The Fund’s risks include, but are not limited to, some or all of the risks discussed below. For further information on the Fund’s risks, please refer to the Fund’s Prospectus and Statement of Additional Information.
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: As with credit risk, market risk and interest rate 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 lose income.
Credit Risk: This is the risk that the issuer, the guarantor or the insurer of a fixed income security, or the counterparty to a contract, may be unable or unwilling to make timely
PGIM Active High Yield Bond ETF | 51 |
Notes to Financial Statements (unaudited) (continued)
principal and interest payments, or to otherwise honor its obligations. Additionally, fixed income securities could lose value due to a loss of confidence in the ability of the issuer, guarantor, insurer or counterparty to pay back debt. The longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk.
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, many over-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.
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.
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. For example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk”. 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
52 |
referred to as “extension risk”. The Fund may lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
Junk Bonds Risk: High-yield, high-risk bonds have predominantly speculative characteristics, including particularly high credit risk. Junk bonds tend to have lower market liquidity than higher-rated securities. The liquidity of particular issuers or industries within a particular investment category may shrink or disappear suddenly and without warning. The non-investment grade bond market can experience sudden and sharp price swings and become illiquid due to a variety of factors, including changes in economic forecasts, stock market activity, large sustained sales by major investors, a high profile default or a change in the market’s psychology.
LIBOR Risk: Many financial instruments use or may use a floating rate based on the London Interbank Offered Rate, or “LIBOR,” which is the offered rate for short-term Eurodollar deposits between major international banks. Over the course of the last several years, global regulators have indicated an intent to phase out the use of LIBOR and similar interbank offering rates (IBOR). On November 30, 2020, the administrator of LIBOR announced a delay in the phase out of a majority of the U.S. dollar LIBOR publications until June 30, 2023, with the remainder of LIBOR publications to still end at the end of 2021. There still remains uncertainty regarding the nature of any replacement rates for LIBOR and the other IBORs as well as around fallback approaches for instruments extending beyond the any phase-out of these reference rates. The lack of consensus around replacement rates and the uncertainty of the phase out of LIBOR and other IBORs may result in increased volatility in corporate or governmental debt, bank loans, derivatives and other instruments invested in by a Fund as well as loan facilities used by a Fund. As such, the potential impact of a transition away from LIBOR on a Fund or the financial instruments in which a Fund invests cannot yet be determined. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR and the other IBORs as benchmarks could deteriorate during the transition period, these effects could begin to be experienced by the end of 2021 and beyond until the anticipated discontinuance date in 2023 for the majority of the LIBOR rates.
Liquidity Risk: Liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. 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 cannot be readily sold at the desired time or price, the Fund may have to accept a lower price or may not be able to sell the instrument
PGIM Active High Yield Bond ETF | 53 |
Notes to Financial Statements (unaudited) (continued)
at all. The reduction in dealer market-making capacity in the fixed income markets that has occurred in recent years also has the potential to reduce the 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 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.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally.
The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
10. Recent Accounting Pronouncement and Regulatory Developments
In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, which provides optional guidance for applying GAAP to contract modifications, hedging relationships and other transactions affected by the reference rate reform if certain criteria are met. ASU 2020-04 is elective and is effective on March 12, 2020 through December 31, 2022. At this time, management is evaluating the implications of certain
54 |
provisions of the ASU and any impact on the financial statement disclosures has not yet been determined.
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule is scheduled to take effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Fund.
PGIM Active High Yield Bond ETF | 55 |
Financial Highlights
Six Months Ended February 28, 2021 (unaudited) | Year Ended August 31, 2020 | September 24, 2018(e) through August 31, 2019 | ||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $39.99 | $40.96 | $40.00 | |||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 1.04 | 2.49 | 2.30 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.70 | (0.49 | ) | 0.85 | ||||||||||||||||
Total from investment operations | 2.74 | 2.00 | 3.15 | |||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||
Dividends from net investment income | (1.19 | ) | (2.55 | ) | (2.19 | ) | ||||||||||||||
Distributions from net realized gains | (0.59 | ) | (0.42 | ) | - | |||||||||||||||
Total Dividends and Distributions | (1.78 | ) | (2.97 | ) | (2.19 | ) | ||||||||||||||
Net asset value, end of period | $40.95 | $39.99 | 40.96 | |||||||||||||||||
Total Return(b): | 7.01% | 5.24% | 8.20% | |||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000) | $58,355 | $34,994 | $27,649 | |||||||||||||||||
Average net assets (000) | $49,013 | $29,367 | $26,467 | |||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.53% | (d) | 0.53% | 0.52% | (d) | |||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.53% | (d) | 0.53% | 0.53% | (d) | |||||||||||||||
Net investment income (loss) | 5.18% | (d) | 6.37% | 6.15% | (d) | |||||||||||||||
Portfolio turnover rate(f) | 63% | 57% | 55% |
(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.
56 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
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 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-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 • 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 • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Jon Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Patrick McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
SUBADVISER | PGIM Fixed Income | 655 Broad Street Newark, NJ 07102 | ||
| ||||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
CUSTODIAN/TRANSFER AGENT | Brown Brothers Harriman & Co. | 50 Post Office Square Boston, MA 02110 | ||
| ||||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue | ||
| ||||
FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
|
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 at pgim.com/investments 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 to pgim.com/investments/resource/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 that Trustee at 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 as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
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 ACTIVE 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, 2021
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
3 | ||||
4 | ||||
6 | ||||
8 | ||||
10 | ||||
12 | ||||
15 |
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 views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.
The accompanying financial statements as of February 28, 2021 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. © 2021 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.
2 | Visit our website at pgim.com/investments |
Dear Shareholder,
We hope you find the semiannual report for the PGIM QMA Strategic Alpha ETFs informative and useful. The report covers performance for the six-month period ended February 28, 2021.
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, 2021
PGIM QMA Strategic Alpha ETFs | 3 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Your Fund’s Performance
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 at pgim.com/investments or by calling (800) 225-1852.
Average Annual Total Returns as of 2/28/21 | ||||||
Six Months* (%) | One Year (%) | Since Inception (%) | ||||
Net Asset Value (NAV) | 15.10 | 26.25 | 11.84 (10/17/18) | |||
Market Price** | 14.98 | 14.92 | 11.84 (10/17/18) | |||
S&P 500 Index | 9.75 | 31.27 | 17.95 |
*Not annualized
**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 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 US public companies. It gives a broad look at how stock prices in the United States have performed.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
**The S&P 500 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright © 2021 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
4 | Visit our website at pgim.com/investments |
Presentation of Fund Holdings as of 2/28/21
Ten Largest Holdings | Line of Business | % of Net Assets | ||
News Corp. (Class A Stock) | Media | 0.5% | ||
Hewlett Packard Enterprise Co. | Technology Hardware, Storage & Peripherals | 0.5% | ||
Seagate Technology PLC | Technology Hardware, Storage & Peripherals | 0.4% | ||
People’s United Financial, Inc. | Banks | 0.4% | ||
Tapestry, Inc. | Textiles, Apparel & Luxury Goods | 0.4% | ||
Zebra Technologies Corp. (Class A Stock) | Electronic Equipment, Instruments & Components | 0.4% | ||
MetLife, Inc. | Insurance | 0.4% | ||
EOG Resources, Inc. | Oil, Gas & Consumable Fuels | 0.4% | ||
US Bancorp | Banks | 0.4% | ||
Regions Financial Corp. | Banks | 0.4% |
PGIM QMA Strategic Alpha ETFs | 5 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Your Fund’s Performance
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 at pgim.com/investments or by calling (800) 225-1852.
Average Annual Total Returns as of 2/28/21 | ||||||
Six Months* (%) | One Year (%) | Since Inception (%) | ||||
Net Asset Value (NAV) | 36.22 | 46.73 | 16.31 (11/13/18) | |||
Market Price** | 36.04 | 47.08 | 16.35 (11/13/18) | |||
Russell 2000 Growth Index | 37.33 | 58.88 | 24.90 |
*Not annualized
**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 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 an unmanaged index which contains those securities in the Russell 2000 Index with an above-average growth orientation. Companies in this Index generally have higher price-to-book and price-to-earnings ratios. London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2021. FTSE Russell is a trading name of certain of the LSE Group companies. Russell® is a trademark 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.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
6 | Visit our website at pgim.com/investments |
Presentation of Fund Holdings as of 2/28/21
Ten Largest Holdings | Line of Business | % of Net Assets | ||
Pandion Therapeutics, Inc. | Biotechnology | 0.6% | ||
Atkore, Inc. | Electrical Equipment | 0.3% | ||
Viela Bio, Inc. | Biotechnology | 0.3% | ||
Sonos, Inc. | Household Durables | 0.3% | ||
Avid Bioservices, Inc. | Biotechnology | 0.3% | ||
Amkor Technology, Inc. | Semiconductors & Semiconductor Equipment | 0.3% | ||
Lyra Therapeutics, Inc. | Pharmaceuticals | 0.3% | ||
Glu Mobile, Inc. | Entertainment | 0.3% | ||
Sleep Number Corp. | Specialty Retail | 0.3% | ||
iTeos Therapeutics, Inc. | Biotechnology | 0.2% |
PGIM QMA Strategic Alpha ETFs | 7 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Your Fund’s Performance
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 at pgim.com/investments or by calling (800) 225-1852.
Average Annual Total Returns as of 2/28/21 | ||||||
Six Months* (%) | One Year (%) | Since Inception (%) | ||||
Net Asset Value (NAV) | 44.37 | 36.50 | 10.31 (11/13/18) | |||
Market Price** | 44.45 | 36.78 | 10.40 (11/13/18) | |||
Russell 2000 Value Index | 46.42 | 41.06 | 12.54 |
*Not annualized
**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 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 an unmanaged index which contains those securities in the Russell 2000 Index with a below-average growth orientation. Companies in this Index generally have low price-to-book and price-to-earnings ratios, higher dividend yields and lower forecasted growth rates. London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). © LSE Group 2021. FTSE Russell is a trading name of certain of the LSE Group companies. Russell® is a trademark 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.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
8 | Visit our website at pgim.com/investments |
Presentation of Fund Holdings as of 2/28/21
Ten Largest Holdings | Line of Business | % of Net Assets | ||
Dime Community Bancshares, Inc. | Banks | 0.3% | ||
Mesa Air Group, Inc. | Airlines | 0.2% | ||
Nabors Industries Ltd. | Energy Equipment & Services | 0.2% | ||
Protective Insurance Corp. (Class B Stock) | Insurance | 0.2% | ||
Goodyear Tire & Rubber Co. (The) | Auto Components | 0.2% | ||
Bonanza Creek Energy, Inc. | Oil, Gas & Consumable Fuels | 0.2% | ||
Hanmi Financial Corp. | Banks | 0.2% | ||
MVB Financial Corp. | Banks | 0.2% | ||
Cooper Tire & Rubber Co. | Auto Components | 0.2% | ||
Boston Omaha Corp. (Class A Stock) | Media | 0.2% |
PGIM QMA Strategic Alpha ETFs | 9 |
PGIM QMA Strategic Alpha International Equity ETF
Your Fund’s Performance
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 at pgim.com/investments or by calling (800) 225-1852.
Average Annual Total Returns as of 2/28/21 | ||||||
Six Months* (%) | One Year (%) | Since Inception (%) | ||||
Net Asset Value (NAV) | 13.06 | 21.60 | 8.96 (12/4/18) | |||
Market Price** | 14.37 | 20.16 | 9.41 (12/4/18) | |||
MSCI EAFE Index | 14.33 | 22.46 | 11.06 |
*Not annualized
**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 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 and Canada.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
10 | Visit our website at pgim.com/investments |
Presentation of Fund Holdings as of 2/28/21
Ten Largest Holdings | Line of Business | Country | % of Net Assets | |||
AP Moller—Maersk A/S (Class A Stock) | Marine | Denmark | 0.3% | |||
AP Moller—Maersk A/S (Class B Stock) | Marine | Denmark | 0.3% | |||
South32 Ltd. | Metals & Mining | Australia | 0.3% | |||
CK Asset Holdings Ltd. | Real Estate Management & Development | Hong Kong | 0.2% | |||
Porsche Automobil Holding SE | Automobiles | Germany | 0.2% | |||
Repsol SA | Oil, Gas & Consumable Fuels | Spain | 0.2% | |||
DBS Group Holdings Ltd. | Banks | Singapore | 0.2% | |||
Swire Properties Ltd. | Real Estate Management & Development | Hong Kong | 0.2% | |||
Evraz PLC | Metals & Mining | United Kingdom | 0.2% | |||
Alfa Laval AB | Machinery | Sweden | 0.2% |
PGIM QMA Strategic Alpha ETFs | 11 |
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 six-month period ended February 28, 2021. The example is for illustrative purposes only.
Actual Expenses
The first line in the tables 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 Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the tables 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.
12 | Visit our website at pgim.com/investments |
PGIM QMA Strategic Alpha Large-Cap Core ETF | Beginning Account Value September 1, 2020 | Ending Account Value February 28, 2021 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||
Actual | $1,000.00 | $ | 1,151.00 | 0.17 | % | $ | 0.91 | |||||||
Hypothetical | $1,000.00 | $ | 1,023.95 | 0.17 | % | $ | 0.85 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF | Beginning Account Value September 1, 2020 | Ending Account Value February 28, 2021 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||
Actual | $1,000.00 | $ | 1,362.20 | 0.29 | % | $ | 1.70 | |||||||
Hypothetical | $1,000.00 | $ | 1,023.36 | 0.29 | % | $ | 1.45 |
PGIM QMA Strategic Alpha Small-Cap Value ETF | Beginning Account September 1, 2020 | Ending Account | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||
Actual | $1,000.00 | $ | 1,443.70 | 0.29 | % | $ | 1.76 | |||||||
Hypothetical | $1,000.00 | $ | 1,023.36 | 0.29 | % | $ | 1.45 |
PGIM QMA Strategic Alpha International Equity ETF | Beginning Account Value September 1, 2020 | Ending Account Value February 28, 2021 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||
Actual | $1,000.00 | $ | 1,130.60 | 0.29 | % | $ | 1.53 | |||||||
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, 2021, and divided by the 365 days in the Fund’s fiscal year ending August 31, 2021 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
PGIM QMA Strategic Alpha ETFs | 13 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Schedule of Investments (unaudited)
as of February 28, 2021
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.5% | ||||||||
COMMON STOCKS 99.5% | ||||||||
Aerospace & Defense 2.8% | ||||||||
General Dynamics Corp. | 286 | $ | 46,752 | |||||
Huntington Ingalls Industries, Inc. | 249 | 43,802 | ||||||
L3Harris Technologies, Inc. | 236 | 42,931 | ||||||
Lockheed Martin Corp. | 128 | 42,272 | ||||||
Northrop Grumman Corp. | 146 | 42,582 | ||||||
Raytheon Technologies Corp. | 599 | 43,122 | ||||||
Teledyne Technologies, Inc.* | 111 | 41,181 | ||||||
Textron, Inc. | 880 | 44,299 | ||||||
|
| |||||||
346,941 | ||||||||
Air Freight & Logistics 0.7% | ||||||||
Expeditors International of Washington, Inc. | 460 | 42,246 | ||||||
FedEx Corp. | 170 | 43,265 | ||||||
|
| |||||||
85,511 | ||||||||
Auto Components 0.7% | ||||||||
Aptiv PLC (Ireland)* | 300 | 44,952 | ||||||
BorgWarner, Inc. | 988 | 44,460 | ||||||
|
| |||||||
89,412 | ||||||||
Automobiles 0.7% | ||||||||
Ford Motor Co.* | 3,752 | 43,898 | ||||||
General Motors Co. | 785 | 40,294 | ||||||
|
| |||||||
84,192 | ||||||||
Banks 4.7% | ||||||||
Citigroup, Inc. | 699 | 46,050 | ||||||
Citizens Financial Group, Inc. | 1,111 | 48,262 | ||||||
Fifth Third Bancorp | 1,410 | 48,913 | ||||||
First Republic Bank | 281 | 46,295 | ||||||
JPMorgan Chase & Co. | 321 | 47,241 | ||||||
KeyCorp | 2,383 | 47,994 | ||||||
People’s United Financial, Inc. | 3,057 | 54,843 | ||||||
Regions Financial Corp. | 2,431 | 50,151 | ||||||
Truist Financial Corp. | 847 | 48,245 | ||||||
US Bancorp | 1,007 | 50,350 | ||||||
Wells Fargo & Co. | 1,351 | 48,866 | ||||||
Zions Bancorp NA | 912 | 48,491 | ||||||
|
| |||||||
585,701 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 15 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Beverages 1.6% | ||||||||
Coca-Cola Co. (The) | 883 | $ | 43,258 | |||||
Constellation Brands, Inc. (Class A Stock) | 189 | 40,472 | ||||||
Molson Coors Beverage Co. (Class B Stock) | 854 | 37,960 | ||||||
Monster Beverage Corp.* | 452 | 39,659 | ||||||
PepsiCo, Inc. | 310 | 40,049 | ||||||
|
| |||||||
201,398 | ||||||||
Biotechnology 2.2% | ||||||||
AbbVie, Inc. | 404 | 43,527 | ||||||
Amgen, Inc. | 172 | 38,686 | ||||||
Biogen, Inc.* | 160 | 43,661 | ||||||
Gilead Sciences, Inc. | 645 | 39,603 | ||||||
Incyte Corp.* | 460 | 36,184 | ||||||
Regeneron Pharmaceuticals, Inc.* | 81 | 36,496 | ||||||
Vertex Pharmaceuticals, Inc.* | 181 | 38,471 | ||||||
|
| |||||||
276,628 | ||||||||
Building Products 1.7% | ||||||||
A.O. Smith Corp. | 737 | 43,756 | ||||||
Carrier Global Corp. | 1,184 | 43,251 | ||||||
Fortune Brands Home & Security, Inc. | 424 | 35,251 | ||||||
Johnson Controls International PLC | 829 | 46,250 | ||||||
Masco Corp. | 745 | 39,649 | ||||||
|
| |||||||
208,157 | ||||||||
Capital Markets 2.9% | ||||||||
Ameriprise Financial, Inc. | 204 | 45,133 | ||||||
Bank of New York Mellon Corp. (The) | 1,070 | 45,111 | ||||||
Cboe Global Markets, Inc. | 450 | 44,532 | ||||||
Franklin Resources, Inc. | 1,635 | 42,788 | ||||||
Invesco Ltd. | 2,070 | 46,409 | ||||||
MSCI, Inc. (Class A Stock) | 105 | 43,525 | ||||||
State Street Corp. | 608 | 44,244 | ||||||
T Rowe Price Group, Inc. | 296 | 47,994 | ||||||
|
| |||||||
359,736 | ||||||||
Chemicals 2.4% | ||||||||
Celanese Corp. (Class A Stock) | 328 | 45,563 | ||||||
Corteva, Inc. | 1,038 | 46,866 | ||||||
Eastman Chemical Co. | 408 | 44,578 | ||||||
FMC Corp. | 376 | 38,235 | ||||||
Linde PLC (United Kingdom) | 171 | 41,770 |
See Notes to Financial Statements.
16 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Chemicals (cont'd.) | ||||||||
PPG Industries, Inc. | 296 | $ | 39,907 | |||||
Sherwin-Williams Co. (The) | 59 | 40,140 | ||||||
|
| |||||||
297,059 | ||||||||
Commercial Services & Supplies 1.3% | ||||||||
Cintas Corp. | 131 | 42,489 | ||||||
Copart, Inc.* | 341 | 37,224 | ||||||
Republic Services, Inc. (Class A Stock) | 460 | 40,981 | ||||||
Waste Management, Inc. | 377 | 41,805 | ||||||
|
| |||||||
162,499 | ||||||||
Communications Equipment 1.6% | ||||||||
Arista Networks, Inc.* | 139 | 38,898 | ||||||
Cisco Systems, Inc. | 911 | 40,877 | ||||||
F5 Networks, Inc.* | 215 | 40,846 | ||||||
Juniper Networks, Inc. | 1,590 | 37,015 | ||||||
Motorola Solutions, Inc. | 251 | 44,045 | ||||||
|
| |||||||
201,681 | ||||||||
Construction & Engineering 0.4% | ||||||||
Quanta Services, Inc. | 556 | 46,621 | ||||||
Construction Materials 0.4% | ||||||||
Martin Marietta Materials, Inc. | 140 | 47,162 | ||||||
Consumer Finance 0.4% | ||||||||
Capital One Financial Corp. | 398 | 47,836 | ||||||
Containers & Packaging 1.7% | ||||||||
Amcor PLC (United Kingdom) | 3,845 | 42,064 | ||||||
Avery Dennison Corp. | 271 | 47,482 | ||||||
International Paper Co. | 884 | 43,891 | ||||||
Sealed Air Corp. | 954 | 39,973 | ||||||
Westrock Co. | 928 | 40,451 | ||||||
|
| |||||||
213,861 | ||||||||
Distributors 1.0% | ||||||||
Genuine Parts Co. | 423 | 44,563 | ||||||
LKQ Corp.* | 1,150 | 45,298 | ||||||
Pool Corp. | 118 | 39,503 | ||||||
|
| |||||||
129,364 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Diversified Telecommunication Services 1.1% | ||||||||
AT&T, Inc. | 1,500 | $ | 41,835 | |||||
Lumen Technologies, Inc. | 3,901 | 47,943 | ||||||
Verizon Communications, Inc. | 755 | 41,752 | ||||||
|
| |||||||
131,530 | ||||||||
Electric Utilities 1.6% | ||||||||
Alliant Energy Corp. | 869 | 40,113 | ||||||
Edison International | 710 | 38,333 | ||||||
Exelon Corp. | 940 | 36,284 | ||||||
NRG Energy, Inc. | 1,058 | 38,627 | ||||||
PPL Corp. | 1,558 | 40,804 | ||||||
|
| |||||||
194,161 | ||||||||
Electrical Equipment 1.1% | ||||||||
AMETEK, Inc. | 368 | 43,413 | ||||||
Eaton Corp. PLC | 345 | 44,916 | ||||||
Emerson Electric Co. | 549 | 47,159 | ||||||
|
| |||||||
135,488 | ||||||||
Electronic Equipment, Instruments & Components 1.4% | ||||||||
Amphenol Corp. (Class A Stock) | 342 | 42,983 | ||||||
Corning, Inc. | 1,133 | 43,326 | ||||||
IPG Photonics Corp.* | 172 | 39,104 | ||||||
Zebra Technologies Corp. (Class A Stock)* | 107 | 53,439 | ||||||
|
| |||||||
178,852 | ||||||||
Energy Equipment & Services 0.4% | ||||||||
Baker Hughes Co. (Class A Stock) | 1,918 | 46,953 | ||||||
Entertainment 1.0% | ||||||||
Activision Blizzard, Inc. | 458 | 43,789 | ||||||
Electronic Arts, Inc. | 268 | 35,904 | ||||||
Take-Two Interactive Software, Inc.* | 215 | 39,659 | ||||||
|
| |||||||
119,352 | ||||||||
Equity Real Estate Investment Trusts (REITs) 2.8% | ||||||||
Crown Castle International Corp. | 271 | 42,208 | ||||||
Equinix, Inc. | 60 | 38,901 | ||||||
Extra Space Storage, Inc. | 377 | 47,389 | ||||||
Healthpeak Properties, Inc. | 1,445 | 42,035 | ||||||
Prologis, Inc. | 430 | 42,600 | ||||||
Public Storage | 195 | 45,618 |
See Notes to Financial Statements.
18 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) (cont'd.) | ||||||||
Ventas, Inc. | 890 | $ | 47,081 | |||||
Weyerhaeuser Co. | 1,293 | 43,794 | ||||||
|
| |||||||
349,626 | ||||||||
Food & Staples Retailing 1.3% | ||||||||
Costco Wholesale Corp. | 119 | 39,389 | ||||||
Kroger Co. (The) | 1,302 | 41,937 | ||||||
Walgreens Boots Alliance, Inc. | 1,003 | 48,074 | ||||||
Walmart, Inc. | 273 | 35,468 | ||||||
|
| |||||||
164,868 | ||||||||
Food Products 3.8% | ||||||||
Archer-Daniels-Midland Co. | 762 | 43,114 | ||||||
Campbell Soup Co. | 928 | 42,205 | ||||||
Conagra Brands, Inc. | 1,270 | 43,091 | ||||||
General Mills, Inc. | 782 | 43,018 | ||||||
Hershey Co. (The) | 268 | 39,034 | ||||||
Hormel Foods Corp. | 956 | 44,330 | ||||||
JM Smucker Co. (The)(a) | 381 | 42,672 | ||||||
Kellogg Co. | 747 | 43,109 | ||||||
Kraft Heinz Co. (The) | 1,226 | 44,602 | ||||||
Mondelez International, Inc. (Class A Stock) | 770 | 40,933 | ||||||
Tyson Foods, Inc. (Class A Stock) | 656 | 44,392 | ||||||
|
| |||||||
470,500 | ||||||||
Gas Utilities 0.3% | ||||||||
Atmos Energy Corp. | 483 | 40,867 | ||||||
Health Care Equipment & Supplies 7.0% | ||||||||
Abbott Laboratories | 383 | 45,876 | ||||||
ABIOMED, Inc.* | 124 | 40,244 | ||||||
Align Technology, Inc.* | 80 | 45,369 | ||||||
Baxter International, Inc. | 540 | 41,953 | ||||||
Becton Dickinson & Co. | 160 | 38,584 | ||||||
Boston Scientific Corp.* | 1,153 | 44,713 | ||||||
Cooper Cos., Inc. (The) | 106 | 40,930 | ||||||
Danaher Corp. | 173 | 38,003 | ||||||
DENTSPLY SIRONA, Inc. | 803 | 42,615 | ||||||
Edwards Lifesciences Corp.* | 492 | 40,885 | ||||||
Hologic, Inc.* | 569 | 41,019 | ||||||
IDEXX Laboratories, Inc.* | 87 | 45,255 | ||||||
Intuitive Surgical, Inc.* | 54 | 39,787 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Health Care Equipment & Supplies (cont'd.) | ||||||||
Medtronic PLC (Ireland) | 350 | $ | 40,940 | |||||
ResMed, Inc. | 205 | 39,520 | ||||||
STERIS PLC | 226 | 39,505 | ||||||
Stryker Corp. | 178 | 43,199 | ||||||
Teleflex, Inc. | 102 | 40,608 | ||||||
Varian Medical Systems, Inc.* | 246 | 43,116 | ||||||
West Pharmaceutical Services, Inc. | 145 | 40,694 | ||||||
Zimmer Biomet Holdings, Inc. | 264 | 43,048 | ||||||
|
| |||||||
875,863 | ||||||||
Health Care Providers & Services 3.5% | ||||||||
Anthem, Inc. | 145 | 43,963 | ||||||
Centene Corp.* | 659 | 38,578 | ||||||
CVS Health Corp. | 616 | 41,968 | ||||||
DaVita, Inc.* | 362 | 36,971 | ||||||
Henry Schein, Inc.* | 576 | 35,626 | ||||||
Humana, Inc. | 105 | 39,863 | ||||||
Laboratory Corp. of America Holdings* | 194 | 46,542 | ||||||
McKesson Corp. | 228 | 38,651 | ||||||
Quest Diagnostics, Inc. | 311 | 35,948 | ||||||
UnitedHealth Group, Inc. | 118 | 39,202 | ||||||
Universal Health Services, Inc. (Class B Stock)* | 336 | 42,111 | ||||||
|
| |||||||
439,423 | ||||||||
Health Care Technology 0.3% | ||||||||
Cerner Corp. | 533 | 36,852 | ||||||
Hotels, Restaurants & Leisure 1.0% | ||||||||
Domino’s Pizza, Inc. | 114 | 39,502 | ||||||
McDonald’s Corp. | 203 | 41,846 | ||||||
Yum! Brands, Inc. | 398 | 41,205 | ||||||
|
| |||||||
122,553 | ||||||||
Household Durables 2.1% | ||||||||
DR Horton, Inc. | 565 | 43,432 | ||||||
Lennar Corp. (Class A Stock) | 517 | 42,895 | ||||||
Mohawk Industries, Inc.* | 286 | 50,047 | ||||||
Newell Brands, Inc. | 1,754 | 40,640 | ||||||
PulteGroup, Inc. | 909 | 41,005 | ||||||
Whirlpool Corp. | 222 | 42,198 | ||||||
|
| |||||||
260,217 |
See Notes to Financial Statements.
20 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Household Products 1.0% | ||||||||
Clorox Co. (The) | 219 | $ | 39,650 | |||||
Colgate-Palmolive Co. | 545 | 40,984 | ||||||
Procter & Gamble Co. (The) | 330 | 40,765 | ||||||
|
| |||||||
121,399 | ||||||||
Independent Power & Renewable Electricity Producers 0.3% | ||||||||
AES Corp. (The) | 1,585 | 42,098 | ||||||
Industrial Conglomerates 1.1% | ||||||||
3M Co. | 253 | 44,290 | ||||||
General Electric Co. | 3,908 | 49,006 | ||||||
Honeywell International, Inc. | 211 | 42,696 | ||||||
|
| |||||||
135,992 | ||||||||
Insurance 2.9% | ||||||||
Aflac, Inc.(a) | 985 | 47,172 | ||||||
Allstate Corp. (The) | 367 | 39,122 | ||||||
American International Group, Inc. | 1,053 | 46,279 | ||||||
Assurant, Inc. | 314 | 38,691 | ||||||
Loews Corp. | 1,019 | 48,718 | ||||||
MetLife, Inc. | 923 | 53,165 | ||||||
Progressive Corp. (The) | 459 | 39,451 | ||||||
Travelers Cos., Inc. (The) | 291 | 42,341 | ||||||
|
| |||||||
354,939 | ||||||||
Interactive Media & Services 1.1% | ||||||||
Alphabet, Inc., | ||||||||
(Class A Stock)* | 24 | 48,526 | ||||||
(Class C Stock)* | 24 | 48,885 | ||||||
Facebook, Inc. (Class A Stock)* | 159 | 40,961 | ||||||
|
| |||||||
138,372 | ||||||||
Internet & Direct Marketing Retail 0.6% | ||||||||
Amazon.com, Inc.* | 12 | 37,115 | ||||||
eBay, Inc. | 703 | 39,663 | ||||||
|
| |||||||
76,778 | ||||||||
IT Services 3.4% | ||||||||
Accenture PLC (Ireland) (Class A Stock) | 151 | 37,886 | ||||||
Automatic Data Processing, Inc. | 269 | 46,811 | ||||||
Broadridge Financial Solutions, Inc. | 280 | 39,897 | ||||||
Cognizant Technology Solutions Corp. (Class A Stock) | 581 | 42,692 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
IT Services (cont'd.) | ||||||||
Fidelity National Information Services, Inc. | 324 | $ | 44,712 | |||||
Gartner, Inc.* | 268 | 47,983 | ||||||
International Business Machines Corp. | 297 | 35,322 | ||||||
Jack Henry & Associates, Inc. | 282 | 41,860 | ||||||
Paychex, Inc. | �� | 456 | 41,528 | |||||
VeriSign, Inc.* | 219 | 42,493 | ||||||
|
| |||||||
421,184 | ||||||||
Life Sciences Tools & Services 2.7% | ||||||||
Agilent Technologies, Inc. | 363 | 44,311 | ||||||
Bio-Rad Laboratories, Inc. (Class A Stock)* | 74 | 43,253 | ||||||
Illumina, Inc.* | 107 | 47,017 | ||||||
IQVIA Holdings, Inc.* | 234 | 45,113 | ||||||
Mettler-Toledo International, Inc.* | 37 | 41,294 | ||||||
PerkinElmer, Inc. | 298 | 37,575 | ||||||
Thermo Fisher Scientific, Inc. | 84 | 37,806 | ||||||
Waters Corp.* | 160 | 43,821 | ||||||
|
| |||||||
340,190 | ||||||||
Machinery 4.1% | ||||||||
Cummins, Inc. | 175 | 44,310 | ||||||
Dover Corp. | 365 | 44,990 | ||||||
IDEX Corp. | 199 | 38,839 | ||||||
Illinois Tool Works, Inc. | 203 | 41,042 | ||||||
Ingersoll Rand, Inc.* | 945 | 43,791 | ||||||
Otis Worldwide Corp. | 616 | 39,245 | ||||||
PACCAR, Inc. | 435 | 39,581 | ||||||
Parker-Hannifin Corp. | 155 | 44,479 | ||||||
Pentair PLC (United Kingdom) | 789 | 44,129 | ||||||
Snap-on, Inc.(a) | 246 | 49,965 | ||||||
Stanley Black & Decker, Inc. | 227 | 39,689 | ||||||
Westinghouse Air Brake Technologies Corp. | 535 | 38,750 | ||||||
|
| |||||||
508,810 | ||||||||
Media 1.5% | ||||||||
Comcast Corp. (Class A Stock) | 817 | 43,072 | ||||||
DISH Network Corp. (Class A Stock)* | 1,355 | 42,696 | ||||||
Fox Corp. (Class A Stock) | 1,393 | 46,401 | ||||||
News Corp. (Class A Stock) | 2,431 | 57,007 | ||||||
|
| |||||||
189,176 |
See Notes to Financial Statements.
22 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Metals & Mining 0.7% | ||||||||
Newmont Corp. | 694 | $ | 37,740 | |||||
Nucor Corp. | 784 | 46,899 | ||||||
|
| |||||||
84,639 | ||||||||
Multiline Retail 0.6% | ||||||||
Dollar Tree, Inc.* | 384 | 37,709 | ||||||
Target Corp. | 232 | 42,558 | ||||||
|
| |||||||
80,267 | ||||||||
Multi-Utilities 2.2% | ||||||||
CenterPoint Energy, Inc. | 1,895 | 36,839 | ||||||
Consolidated Edison, Inc. | 625 | 41,031 | ||||||
Dominion Energy, Inc. | 602 | 41,129 | ||||||
DTE Energy Co. | 320 | 37,670 | ||||||
Public Service Enterprise Group, Inc. | 741 | 39,888 | ||||||
Sempra Energy | 353 | 40,941 | ||||||
WEC Energy Group, Inc. | 492 | 39,675 | ||||||
|
| |||||||
277,173 | ||||||||
Oil, Gas & Consumable Fuels 1.5% | ||||||||
EOG Resources, Inc. | 786 | 50,744 | ||||||
Exxon Mobil Corp. | 899 | 48,879 | ||||||
Kinder Morgan, Inc. | 2,799 | 41,145 | ||||||
Williams Cos., Inc. (The) | 1,996 | 45,589 | ||||||
|
| |||||||
186,357 | ||||||||
Personal Products 0.4% | ||||||||
Estee Lauder Cos., Inc. (The) (Class A Stock) | 170 | 48,596 | ||||||
Pharmaceuticals 1.9% | ||||||||
Bristol-Myers Squibb Co. | 674 | 41,336 | ||||||
Johnson & Johnson | 255 | 40,407 | ||||||
Merck & Co., Inc. | 532 | 38,634 | ||||||
Perrigo Co. PLC (Ireland) | 996 | 40,199 | ||||||
Pfizer, Inc. | 1,185 | 39,686 | ||||||
Zoetis, Inc. (Class A Stock) | 263 | 40,828 | ||||||
|
| |||||||
241,090 | ||||||||
Professional Services 0.4% | ||||||||
Robert Half International, Inc. | 634 | 49,319 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Road & Rail 1.7% | ||||||||
CSX Corp. | 504 | $ | 46,141 | |||||
JB Hunt Transport Services, Inc. | 278 | 40,830 | ||||||
Norfolk Southern Corp. | 166 | 41,842 | ||||||
Old Dominion Freight Line, Inc. | 214 | 45,961 | ||||||
Union Pacific Corp. | 208 | 42,839 | ||||||
|
| |||||||
217,613 | ||||||||
Semiconductors & Semiconductor Equipment 4.2% | ||||||||
Applied Materials, Inc. | 400 | 47,276 | ||||||
Broadcom, Inc. | 99 | 46,517 | ||||||
Intel Corp. | 717 | 43,579 | ||||||
KLA Corp. | 142 | 44,195 | ||||||
Lam Research Corp. | 77 | 43,674 | ||||||
Microchip Technology, Inc. | 284 | 43,347 | ||||||
Micron Technology, Inc.* | 508 | 46,497 | ||||||
Qorvo, Inc.* | 235 | 41,061 | ||||||
QUALCOMM, Inc. | 262 | 35,682 | ||||||
Skyworks Solutions, Inc. | 272 | 48,367 | ||||||
Teradyne, Inc. | 308 | 39,612 | ||||||
Texas Instruments, Inc. | 258 | 44,446 | ||||||
|
| |||||||
524,253 | ||||||||
Software 4.9% | ||||||||
Adobe, Inc.* | 92 | 42,290 | ||||||
ANSYS, Inc.* | 114 | 38,873 | ||||||
Autodesk, Inc.* | 145 | 40,020 | ||||||
Cadence Design Systems, Inc.* | 312 | 44,020 | ||||||
Citrix Systems, Inc. | 339 | 45,284 | ||||||
Fortinet, Inc.* | 289 | 48,798 | ||||||
Intuit, Inc. | 121 | 47,207 | ||||||
Microsoft Corp. | 192 | 44,617 | ||||||
NortonLifeLock, Inc. | 2,098 | 40,932 | ||||||
Oracle Corp. | 648 | 41,802 | ||||||
salesforce.com, Inc.* | 195 | 42,217 | ||||||
ServiceNow, Inc.* | 76 | 40,543 | ||||||
Synopsys, Inc.* | 159 | 38,988 | ||||||
Tyler Technologies, Inc.* | 105 | 48,659 | ||||||
|
| |||||||
604,250 |
See Notes to Financial Statements.
24 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Specialty Retail 2.3% | ||||||||
AutoZone, Inc.* | 35 | $ | 40,597 | |||||
Best Buy Co., Inc. | 377 | 37,832 | ||||||
Home Depot, Inc. (The) | 155 | 40,043 | ||||||
Lowe’s Cos., Inc. | 251 | 40,097 | ||||||
O’Reilly Automotive, Inc.* | 92 | 41,154 | ||||||
Tractor Supply Co. | 270 | 42,919 | ||||||
Ulta Beauty, Inc.* | 144 | 46,416 | ||||||
|
| |||||||
289,058 | ||||||||
Technology Hardware, Storage & Peripherals 1.9% | ||||||||
Apple, Inc. | 316 | 38,318 | ||||||
Hewlett Packard Enterprise Co. | 3,849 | 56,041 | ||||||
HP, Inc. | 1,705 | 49,394 | ||||||
NetApp, Inc. | 665 | 41,629 | ||||||
Seagate Technology PLC | 751 | 54,996 | ||||||
|
| |||||||
240,378 | ||||||||
Textiles, Apparel & Luxury Goods 0.8% | ||||||||
Tapestry, Inc. | 1,281 | 53,981 | ||||||
VF Corp. | 514 | 40,673 | ||||||
|
| |||||||
94,654 | ||||||||
Tobacco 0.7% | ||||||||
Altria Group, Inc. | 929 | 40,504 | ||||||
Philip Morris International, Inc. | 531 | 44,615 | ||||||
|
| |||||||
85,119 | ||||||||
Trading Companies & Distributors 0.7% | ||||||||
Fastenal Co. | 829 | 38,441 | ||||||
WW Grainger, Inc. | 114 | 42,489 | ||||||
|
| |||||||
80,930 | ||||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 12,383,498 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS 1.0% | ||||||||
AFFILIATED MUTUAL FUND 0.6% | ||||||||
PGIM Institutional Money Market Fund | 76,871 | 76,832 | ||||||
|
|
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, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
TIME DEPOSIT 0.4% | ||||||||||||||||
Skandinaviska Enskilda Banken AB (Sweden) | 0.005 | % | 03/01/21 | 41 | $ | 41,176 | ||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS | 118,008 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 100.5% | 12,501,506 | |||||||||||||||
Liabilities in excess of other assets (0.5)% | (59,703 | ) | ||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% |
| $ | 12,441,803 | |||||||||||||
|
|
The following abbreviations are used in the semi-annual report:
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $74,407; cash collateral of $76,826 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
* | 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.
See Notes to Financial Statements.
26 |
The following is a summary of the inputs used as of February 28, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 346,941 | $ | — | $ | — | ||||||
Air Freight & Logistics | 85,511 | — | — | |||||||||
Auto Components | 89,412 | — | — | |||||||||
Automobiles | 84,192 | — | — | |||||||||
Banks | 585,701 | — | — | |||||||||
Beverages | 201,398 | — | — | |||||||||
Biotechnology | 276,628 | — | — | |||||||||
Building Products | 208,157 | — | — | |||||||||
Capital Markets | 359,736 | — | — | |||||||||
Chemicals | 297,059 | — | — | |||||||||
Commercial Services & Supplies | 162,499 | — | — | |||||||||
Communications Equipment | 201,681 | — | — | |||||||||
Construction & Engineering | 46,621 | — | — | |||||||||
Construction Materials | 47,162 | — | — | |||||||||
Consumer Finance | 47,836 | — | — | |||||||||
Containers & Packaging | 213,861 | — | — | |||||||||
Distributors | 129,364 | — | — | |||||||||
Diversified Telecommunication Services | 131,530 | — | — | |||||||||
Electric Utilities | 194,161 | — | — | |||||||||
Electrical Equipment | 135,488 | — | — | |||||||||
Electronic Equipment, Instruments & Components | 178,852 | — | — | |||||||||
Energy Equipment & Services | 46,953 | — | — | |||||||||
Entertainment | 119,352 | — | — | |||||||||
Equity Real Estate Investment Trusts (REITs) | 349,626 | — | — | |||||||||
Food & Staples Retailing | 164,868 | — | — | |||||||||
Food Products | 470,500 | — | — | |||||||||
Gas Utilities | 40,867 | — | — | |||||||||
Health Care Equipment & Supplies | 875,863 | — | — | |||||||||
Health Care Providers & Services | 439,423 | — | — | |||||||||
Health Care Technology | 36,852 | — | — | |||||||||
Hotels, Restaurants & Leisure | 122,553 | — | — | |||||||||
Household Durables | 260,217 | — | — | |||||||||
Household Products | 121,399 | — | — | |||||||||
Independent Power & Renewable Electricity Producers | 42,098 | — | — | |||||||||
Industrial Conglomerates | 135,992 | — | — | |||||||||
Insurance | 354,939 | — | — | |||||||||
Interactive Media & Services | 138,372 | — | — | |||||||||
Internet & Direct Marketing Retail | 76,778 | — | — |
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, 2021
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Assets (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
IT Services | $ | 421,184 | $ | — | $ | — | ||||||
Life Sciences Tools & Services | 340,190 | — | — | |||||||||
Machinery | 508,810 | — | — | |||||||||
Media | 189,176 | — | — | |||||||||
Metals & Mining | 84,639 | — | — | |||||||||
Multiline Retail | 80,267 | — | — | |||||||||
Multi-Utilities | 277,173 | — | — | |||||||||
Oil, Gas & Consumable Fuels | 186,357 | — | — | |||||||||
Personal Products | 48,596 | — | — | |||||||||
Pharmaceuticals | 241,090 | — | — | |||||||||
Professional Services | 49,319 | — | — | |||||||||
Road & Rail | 217,613 | — | — | |||||||||
Semiconductors & Semiconductor Equipment | 524,253 | — | — | |||||||||
Software | 604,250 | — | — | |||||||||
Specialty Retail | 289,058 | — | — | |||||||||
Technology Hardware, Storage & Peripherals | 240,378 | — | — | |||||||||
Textiles, Apparel & Luxury Goods | 94,654 | — | — | |||||||||
Tobacco | 85,119 | — | — | |||||||||
Trading Companies & Distributors | 80,930 | — | — | |||||||||
Affiliated Mutual Fund | 76,832 | — | — | |||||||||
Time Deposit | — | 41,176 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 12,460,330 | $ | 41,176 | $ | — | ||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of February 28, 2021 were as follows:
Health Care Equipment & Supplies | 7.0 | % | ||
Software | 4.9 | |||
Banks | 4.7 | |||
Semiconductors & Semiconductor Equipment | 4.2 | |||
Machinery | 4.1 | |||
Food Products | 3.8 | |||
Health Care Providers & Services | 3.5 | |||
IT Services | 3.4 | |||
Capital Markets | 2.9 | |||
Insurance | 2.9 | |||
Equity Real Estate Investment Trusts (REITs) | 2.8 | |||
Aerospace & Defense | 2.8 | |||
Life Sciences Tools & Services | 2.7 | |||
Chemicals | 2.4 | |||
Specialty Retail | 2.3 | |||
Multi-Utilities | 2.2 | |||
Biotechnology | 2.2 | |||
Household Durables | 2.1 | |||
Pharmaceuticals | 1.9 | |||
Technology Hardware, Storage & Peripherals | 1.9 | |||
Road & Rail | 1.7 | |||
Containers & Packaging | 1.7 | |||
Building Products | 1.7 | |||
Communications Equipment | 1.6 | |||
Beverages | 1.6 | |||
Electric Utilities | 1.6 | |||
Media | 1.5 | |||
Oil, Gas & Consumable Fuels | 1.5 |
See Notes to Financial Statements.
28 |
Industry Classification (cont’d.) | ||||
Electronic Equipment, Instruments & Components | 1.4 | % | ||
Food & Staples Retailing | 1.3 | |||
Commercial Services & Supplies | 1.3 | |||
Interactive Media & Services | 1.1 | |||
Industrial Conglomerates | 1.1 | |||
Electrical Equipment | 1.1 | |||
Diversified Telecommunication Services | 1.1 | |||
Distributors | 1.0 | |||
Hotels, Restaurants & Leisure | 1.0 | |||
Household Products | 1.0 | |||
Entertainment | 1.0 | |||
Textiles, Apparel & Luxury Goods | 0.8 | |||
Auto Components | 0.7 | |||
Air Freight & Logistics | 0.7 | |||
Tobacco | 0.7 | |||
Metals & Mining | 0.7 | |||
Automobiles | 0.7 | |||
Trading Companies & Distributors | 0.7 | |||
Multiline Retail | 0.6 | |||
Affiliated Mutual Fund (0.6% represents investments purchased with collateral from securities on loan) | 0.6 | |||
Internet & Direct Marketing Retail | 0.6 | |||
Professional Services | 0.4 | |||
Personal Products | 0.4 | |||
Consumer Finance | 0.4 | |||
Construction Materials | 0.4 | |||
Energy Equipment & Services | 0.4 | |||
Construction & Engineering | 0.4 | |||
Time Deposit | 0.4 | |||
Independent Power & Renewable Electricity Producers | 0.3 | |||
Gas Utilities | 0.3 | |||
Health Care Technology | 0.3 | |||
|
| |||
100.5 | ||||
Liabilities in excess of other assets | (0.5 | ) | ||
|
| |||
100.0 | % | |||
|
|
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions, where the legal right to set-off exists, is presented in the summary below:
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||||||||
Securities on Loan | $ | 74,407 | $ | (74,407 | ) | $ | — | |||||
|
|
|
|
|
|
(1) | Collateral amount disclosed by the Fund is limited to the market value of the financial instruments/transactions. |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 29 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Statement of Assets & Liabilities (unaudited)
as of February 28, 2021
Assets | ||||
Investments at value, including securities on loan of $74,407: | ||||
Unaffiliated investments (cost $10,381,391) | $ | 12,424,674 | ||
Affiliated investments (cost $76,837) | 76,832 | |||
Interest and dividends receivable | 18,880 | |||
|
| |||
Total Assets | 12,520,386 | |||
|
| |||
Liabilities | ||||
Payable to broker for collateral for securities on loan | 76,826 | |||
Management fee payable | 1,638 | |||
Other liabilities | 119 | |||
|
| |||
Total Liabilities | 78,583 | |||
|
| |||
Net Assets | $ | 12,441,803 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 200 | ||
Paid-in capital in excess of par | 10,206,775 | |||
Total distributable earnings (loss) | 2,234,828 | |||
|
| |||
Net assets, February 28, 2021 | $ | 12,441,803 | ||
|
| |||
Net asset value, offering price and redemption price per share, | $ | 62.21 | ||
|
|
See Notes to Financial Statements.
30 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Statement of Operations (unaudited)
Six Months Ended February 28, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 388 | ||
Unaffiliated dividend income | 101,904 | |||
Income from securities lending, net (including affiliated income of $365) | 368 | |||
Miscellaneous Income | 49 | |||
|
| |||
Total income | 102,709 | |||
|
| |||
Expenses | ||||
Management fee | 9,831 | |||
|
| |||
Total expenses | 9,831 | |||
|
| |||
Net investment income (loss) | 92,878 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(105)) | 914,482 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $57) | 635,295 | |||
|
| |||
Net gain (loss) on investment transactions | 1,549,777 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 1,642,655 | ||
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 31 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Statements of Changes in Net Assets
Six Months Ended February 28, 2021 (unaudited) | Year August 31, 2020 | |||||||
Increase (Decrease) in Net Assets |
| |||||||
Operations |
| |||||||
Net investment income (loss) | $ | 92,878 | $ | 206,373 | ||||
Net realized gain (loss) on investments | 914,482 | (609,299 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments | 635,295 | 1,189,934 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 1,642,655 | 787,008 | ||||||
|
|
|
| |||||
Dividends and Distributions |
| |||||||
Distributions from distributable earnings | (158,974 | ) | (208,630 | ) | ||||
|
|
|
| |||||
Total increase (decrease) | 1,483,681 | 578,378 | ||||||
Net Assets: |
| |||||||
Beginning of period | 10,958,122 | 10,379,744 | ||||||
|
|
|
| |||||
End of period | $ | 12,441,803 | $ | 10,958,122 | ||||
|
|
|
|
See Notes to Financial Statements.
32 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited)
as of February 28, 2021
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.9% | ||||||||
COMMON STOCKS 99.9% | ||||||||
Aerospace & Defense 0.5% | ||||||||
Kaman Corp.(a) | 428 | $ | 20,827 | |||||
Parsons Corp.* | 657 | 23,481 | ||||||
Vectrus, Inc.* | 462 | 25,225 | ||||||
|
| |||||||
69,533 | ||||||||
Air Freight & Logistics 0.6% | ||||||||
Air Transport Services Group, Inc.* | 960 | 25,478 | ||||||
Atlas Air Worldwide Holdings, Inc.* | 482 | 26,573 | ||||||
Forward Air Corp. | 323 | 27,704 | ||||||
|
| |||||||
79,755 | ||||||||
Auto Components 1.4% | ||||||||
Dorman Products, Inc.* | 259 | 25,825 | ||||||
Fox Factory Holding Corp.* | 206 | 26,193 | ||||||
Gentherm, Inc.* | 413 | 29,236 | ||||||
LCI Industries | 187 | 26,356 | ||||||
Patrick Industries, Inc. | 368 | 29,046 | ||||||
Standard Motor Products, Inc. | 615 | 25,836 | ||||||
XPEL, Inc.* | 511 | 24,707 | ||||||
|
| |||||||
187,199 | ||||||||
Automobiles 0.2% | ||||||||
Winnebago Industries, Inc. | 365 | 25,404 | ||||||
Banks 1.2% | ||||||||
Cambridge Bancorp | 364 | 27,744 | ||||||
Eastern Bankshares, Inc.* | 1,573 | 27,700 | ||||||
First Foundation, Inc. | 1,195 | 27,306 | ||||||
Independent Bank Corp. | 327 | 27,962 | ||||||
Investors Bancorp, Inc. | 2,152 | 28,708 | ||||||
National Bank Holdings Corp. (Class A Stock) | 725 | 28,094 | ||||||
|
| |||||||
167,514 | ||||||||
Beverages 0.6% | ||||||||
Coca-Cola Consolidated, Inc. | 96 | 24,639 | ||||||
MGP Ingredients, Inc. | 473 | 30,215 | ||||||
National Beverage Corp. | 460 | 21,924 | ||||||
|
| |||||||
76,778 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 33 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Biotechnology 14.1% | ||||||||
89bio, Inc.* | 1,223 | $ | 30,037 | |||||
ADMA Biologics, Inc.(a)* | 10,384 | 23,987 | ||||||
Aduro Biotech, Inc.*^ | 1,571 | 0 | ||||||
Adverum Biotechnologies, Inc.* | 1,862 | 23,889 | ||||||
Aeglea BioTherapeutics, Inc.* | 3,357 | 25,010 | ||||||
Akebia Therapeutics, Inc.* | 7,474 | 25,860 | ||||||
Akero Therapeutics, Inc.* | 826 | 25,110 | ||||||
Akouos, Inc.* | 1,499 | 30,535 | ||||||
Albireo Pharma, Inc.* | 705 | 24,576 | ||||||
Allogene Therapeutics, Inc.* | 777 | 26,970 | ||||||
Amicus Therapeutics, Inc.* | 1,312 | 16,111 | ||||||
Annexon, Inc.* | 1,005 | 29,256 | ||||||
Aravive, Inc.* | 4,310 | 29,351 | ||||||
Arcus Biosciences, Inc.* | 671 | 23,659 | ||||||
Ardelyx, Inc.* | 3,415 | 22,027 | ||||||
Arena Pharmaceuticals, Inc.* | 329 | 26,435 | ||||||
Assembly Biosciences, Inc.* | 4,239 | 21,534 | ||||||
Athenex, Inc.* | 1,915 | 23,171 | ||||||
Avid Bioservices, Inc.* | 1,744 | 35,892 | ||||||
Avrobio, Inc.* | 1,720 | 18,920 | ||||||
Axcella Health, Inc.* | 4,384 | 24,989 | ||||||
Black Diamond Therapeutics, Inc.* | 974 | 27,272 | ||||||
Blueprint Medicines Corp.* | 249 | 24,457 | ||||||
Calithera Biosciences, Inc.* | 7,990 | 23,331 | ||||||
Catalyst Pharmaceuticals, Inc.* | 6,913 | 26,892 | ||||||
Centogene NV (Germany)* | 2,197 | 25,397 | ||||||
Checkmate Pharmaceuticals, Inc.* | 1,554 | 20,668 | ||||||
Coherus Biosciences, Inc.* | 1,312 | 21,307 | ||||||
Constellation Pharmaceuticals, Inc.* | 720 | 18,144 | ||||||
ContraFect Corp.* | 4,732 | 24,843 | ||||||
Crinetics Pharmaceuticals, Inc.* | 1,683 | 25,733 | ||||||
CytomX Therapeutics, Inc.* | 3,612 | 28,354 | ||||||
Dicerna Pharmaceuticals, Inc.* | 994 | 26,818 | ||||||
Dyadic International, Inc.* | 4,499 | 23,890 | ||||||
Eagle Pharmaceuticals, Inc.* | 525 | 23,362 | ||||||
Eiger BioPharmaceuticals, Inc.* | 2,291 | 23,299 | ||||||
Emergent BioSolutions, Inc.(a)* | 241 | 23,136 | ||||||
Exicure, Inc.* | 10,542 | 22,876 | ||||||
Fennec Pharmaceuticals, Inc.* | 3,123 | 22,860 | ||||||
Flexion Therapeutics, Inc.* | 2,097 | 23,109 | ||||||
Gossamer Bio, Inc.* | 2,415 | 22,701 | ||||||
Immunovant, Inc.* | 614 | 9,689 |
See Notes to Financial Statements.
34 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Biotechnology (cont'd.) | ||||||||
Inozyme Pharma, Inc.* | 976 | $ | 19,520 | |||||
Ironwood Pharmaceuticals, Inc. (Class A Stock)(a)* | 2,456 | 22,669 | ||||||
iTeos Therapeutics, Inc.* | 810 | 33,680 | ||||||
Kindred Biosciences, Inc.* | 5,277 | 23,799 | ||||||
Kiniksa Pharmaceuticals Ltd. (Class A Stock)* | 1,182 | 24,314 | ||||||
Ligand Pharmaceuticals, Inc.(a)* | 165 | 24,456 | ||||||
MacroGenics, Inc.* | 1,073 | 26,836 | ||||||
Magenta Therapeutics, Inc.* | 2,682 | 28,188 | ||||||
MediciNova, Inc.* | 4,225 | 23,576 | ||||||
MEI Pharma, Inc.* | 8,409 | 31,534 | ||||||
MeiraGTx Holdings PLC* | 1,694 | 25,139 | ||||||
Minerva Neurosciences, Inc.* | 7,434 | 23,045 | ||||||
Morphic Holding, Inc.* | 812 | 29,362 | ||||||
Natera, Inc.* | 216 | 25,075 | ||||||
Neoleukin Therapeutics, Inc.* | 1,883 | 22,671 | ||||||
NextCure, Inc.* | 1,883 | 21,391 | ||||||
Ovid therapeutics, Inc.* | 9,327 | 27,515 | ||||||
Oyster Point Pharma, Inc.* | 1,257 | 24,901 | ||||||
Pandion Therapeutics, Inc.* | 1,420 | 85,484 | ||||||
Poseida Therapeutics, Inc.* | 2,824 | 31,177 | ||||||
Protara Therapeutics, Inc.* | 1,315 | 22,618 | ||||||
PTC Therapeutics, Inc.* | 382 | 21,812 | ||||||
Puma Biotechnology, Inc.* | 2,043 | 20,348 | ||||||
Radius Health, Inc.* | 1,205 | 22,425 | ||||||
Replimune Group, Inc.* | 569 | 19,704 | ||||||
Soleno Therapeutics, Inc.* | 12,512 | 30,154 | ||||||
Travere Therapeutics, Inc.* | 979 | 30,173 | ||||||
UNITY Biotechnology, Inc.* | 3,811 | 25,953 | ||||||
Veracyte, Inc.* | 463 | 26,882 | ||||||
Verastem, Inc.* | 11,985 | 28,165 | ||||||
Vericel Corp.* | 588 | 28,389 | ||||||
Viela Bio, Inc.* | 688 | 36,602 | ||||||
Voyager Therapeutics, Inc.* | 2,951 | 16,732 | ||||||
Xencor, Inc.* | 477 | 23,502 | ||||||
Zentalis Pharmaceuticals, Inc.* | 626 | 26,317 | ||||||
|
| |||||||
1,949,565 | ||||||||
Building Products 1.9% | ||||||||
Advanced Drainage Systems, Inc. | 302 | 33,226 | ||||||
Alpha Pro Tech Ltd. (Canada)(a)* | 1,842 | 25,751 | ||||||
Apogee Enterprises, Inc. | 681 | 25,469 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Building Products (cont'd.) | ||||||||
Builders FirstSource, Inc.* | 564 | $ | 24,401 | |||||
Cornerstone Building Brands, Inc.* | 2,035 | 23,179 | ||||||
CSW Industrials, Inc. | 208 | 26,119 | ||||||
Gibraltar Industries, Inc.* | 283 | 24,720 | ||||||
Masonite International Corp.* | 240 | 26,333 | ||||||
Simpson Manufacturing Co., Inc. | 256 | 24,950 | ||||||
UFP Industries, Inc.(a) | 440 | 26,840 | ||||||
|
| |||||||
260,988 | ||||||||
Capital Markets 2.5% | ||||||||
Artisan Partners Asset Management, Inc. (Class A Stock) | 472 | 22,420 | ||||||
Assetmark Financial Holdings, Inc.* | 1,045 | 24,693 | ||||||
Brightsphere Investment Group, Inc. | 1,241 | 22,462 | ||||||
Cohen & Steers, Inc. | 322 | 20,730 | ||||||
Cowen, Inc. (Class A Stock) | 962 | 32,564 | ||||||
Federated Hermes, Inc. (Class B Stock) | 836 | 22,338 | ||||||
GAMCO Investors, Inc. (Class A Stock) | 1,354 | 25,726 | ||||||
Houlihan Lokey, Inc. (Class A Stock) | 362 | 23,009 | ||||||
PJT Partners, Inc. (Class A Stock) | 307 | 21,404 | ||||||
Pzena Investment Management, Inc. (Class A Stock) | 3,035 | 27,983 | ||||||
Silvercrest Asset Management Group, Inc. (Class A Stock) | 1,687 | 23,685 | ||||||
StepStone Group, Inc. (Class A Stock)* | 704 | 25,351 | ||||||
StoneX Group, Inc.* | 458 | 26,422 | ||||||
Virtus Investment Partners, Inc. | 119 | 29,857 | ||||||
|
| |||||||
348,644 | ||||||||
Chemicals 2.7% | ||||||||
Balchem Corp. | 218 | 26,021 | ||||||
Chase Corp. | 247 | 26,597 | ||||||
Ferro Corp.* | 1,704 | 27,042 | ||||||
GCP Applied Technologies, Inc.* | 992 | 24,592 | ||||||
Hawkins, Inc. | 485 | 30,361 | ||||||
HB Fuller Co. | 505 | 28,315 | ||||||
Ingevity Corp.* | 341 | 23,693 | ||||||
Innospec, Inc. | 285 | 28,628 | ||||||
Koppers Holdings, Inc.* | 737 | 24,623 | ||||||
Orion Engineered Carbons SA (Luxembourg) | 1,454 | 25,736 | ||||||
PQ Group Holdings, Inc. | 1,793 | 27,540 | ||||||
Quaker Chemical Corp. | 95 | 26,826 | ||||||
Sensient Technologies Corp. | 324 | 25,223 | ||||||
Stepan Co. | 211 | 25,466 | ||||||
|
| |||||||
370,663 |
See Notes to Financial Statements.
36 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Commercial Services & Supplies 0.9% | ||||||||
Brady Corp. (Class A Stock) | 520 | $ | 27,253 | |||||
Cimpress PLC (Ireland)* | 243 | 24,077 | ||||||
Healthcare Services Group, Inc. | 871 | 24,780 | ||||||
Tetra Tech, Inc. | 193 | 26,705 | ||||||
UniFirst Corp. | 117 | 28,348 | ||||||
|
| |||||||
131,163 | ||||||||
Communications Equipment 1.5% | ||||||||
CalAmp Corp.* | 2,271 | 25,367 | ||||||
Calix, Inc.* | 720 | 28,447 | ||||||
Cambium Networks Corp.* | 753 | 31,844 | ||||||
Casa Systems, Inc.* | 3,075 | 25,246 | ||||||
Clearfield, Inc.* | 727 | 23,562 | ||||||
Extreme Networks, Inc.* | 3,275 | 30,032 | ||||||
Genasys, Inc.* | 3,004 | 20,637 | ||||||
Viavi Solutions, Inc.* | 1,603 | 25,945 | ||||||
|
| |||||||
211,080 | ||||||||
Construction & Engineering 1.5% | ||||||||
Comfort Systems USA, Inc. | 444 | 27,501 | ||||||
EMCOR Group, Inc. | 270 | 26,290 | ||||||
HC2 Holdings, Inc.* | 6,210 | 21,735 | ||||||
IES Holdings, Inc.* | 583 | 26,725 | ||||||
MasTec, Inc.* | 321 | 27,847 | ||||||
MYR Group, Inc.* | 393 | 23,167 | ||||||
NV5 Global, Inc.* | 275 | 28,397 | ||||||
Primoris Services Corp. | 835 | 27,947 | ||||||
|
| |||||||
209,609 | ||||||||
Consumer Finance 0.7% | ||||||||
Curo Group Holdings Corp. | 1,766 | 25,554 | ||||||
FirstCash, Inc. | 441 | 27,924 | ||||||
Green Dot Corp. (Class A Stock)* | 490 | 23,158 | ||||||
PROG Holdings, Inc. | 517 | 25,850 | ||||||
|
| |||||||
102,486 | ||||||||
Containers & Packaging 0.4% | ||||||||
Myers Industries, Inc. | 1,162 | 25,727 | ||||||
Pactiv Evergreen, Inc. | 1,636 | 22,871 | ||||||
|
| |||||||
48,598 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Distributors 0.2% | ||||||||
Core-Mark Holding Co., Inc. | 762 | $ | 24,826 | |||||
Diversified Consumer Services 0.4% | ||||||||
Perdoceo Education Corp.* | 2,038 | 26,229 | ||||||
Strategic Education, Inc. | 282 | 25,639 | ||||||
|
| |||||||
51,868 | ||||||||
Diversified Telecommunication Services 0.8% | ||||||||
IDT Corp. (Class B Stock)* | 1,779 | 31,933 | ||||||
Ooma, Inc.* | 1,678 | 26,513 | ||||||
ORBCOMM, Inc.* | 2,989 | 22,806 | ||||||
Vonage Holdings Corp.* | 1,806 | 23,875 | ||||||
|
| |||||||
105,127 | ||||||||
Electric Utilities 0.7% | ||||||||
Genie Energy Ltd. (Class B Stock) | 3,433 | 25,919 | ||||||
MGE Energy, Inc. | 384 | 24,461 | ||||||
Otter Tail Corp. | 612 | 24,798 | ||||||
Spark Energy, Inc. (Class A Stock) | 2,171 | 21,645 | ||||||
|
| |||||||
96,823 | ||||||||
Electrical Equipment 0.8% | ||||||||
Allied Motion Technologies, Inc. | 530 | 25,726 | ||||||
Atkore, Inc.* | 546 | 36,937 | ||||||
EnerSys | 273 | 24,647 | ||||||
Vicor Corp.* | 245 | 24,130 | ||||||
|
| |||||||
111,440 | ||||||||
Electronic Equipment, Instruments & Components 2.7% | ||||||||
Badger Meter, Inc. | 251 | 27,256 | ||||||
ePlus, Inc.* | 281 | 26,571 | ||||||
Fabrinet (Thailand)* | 292 | 25,792 | ||||||
FARO Technologies, Inc.* | 321 | 30,001 | ||||||
Insight Enterprises, Inc.* | 342 | 28,588 | ||||||
Intellicheck, Inc.* | 2,181 | 26,543 | ||||||
Iteris, Inc.* | 3,760 | 20,718 | ||||||
Luna Innovations, Inc.* | 2,279 | 26,755 | ||||||
Methode Electronics, Inc. | 644 | 25,071 | ||||||
Napco Security Technologies, Inc.* | 888 | 27,643 | ||||||
Novanta, Inc.* | 196 | 25,937 |
See Notes to Financial Statements.
38 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Electronic Equipment, Instruments & Components (cont'd.) | ||||||||
OSI Systems, Inc.* | 272 | $ | 25,737 | |||||
Plexus Corp.* | 321 | 26,958 | ||||||
Rogers Corp.* | 153 | 27,766 | ||||||
|
| |||||||
371,336 | ||||||||
Energy Equipment & Services 0.2% | ||||||||
DMC Global, Inc. | 512 | 32,251 | ||||||
Entertainment 0.3% | ||||||||
Glu Mobile, Inc.* | 2,806 | 35,019 | ||||||
Equity Real Estate Investment Trusts (REITs) 3.3% | ||||||||
Alexander’s, Inc. | 92 | 24,942 | ||||||
Broadstone Net Lease, Inc. (Class A Stock) | 1,367 | 24,729 | ||||||
EastGroup Properties, Inc. | 182 | 24,772 | ||||||
Four Corners Property Trust, Inc. | 943 | 25,546 | ||||||
Gladstone Commercial Corp. | 1,403 | 26,208 | ||||||
Gladstone Land Corp. | 1,515 | 27,103 | ||||||
Indus Realty Trust, Inc. | 396 | 24,029 | ||||||
LTC Properties, Inc. | 639 | 26,142 | ||||||
Monmouth Real Estate Investment Corp. | 1,462 | 25,322 | ||||||
National Health Investors, Inc. | 383 | 26,147 | ||||||
National Storage Affiliates Trust | 693 | 26,715 | ||||||
NexPoint Residential Trust, Inc. | 600 | 24,624 | ||||||
PS Business Parks, Inc. | 186 | 26,944 | ||||||
Saul Centers, Inc. | 817 | 28,938 | ||||||
Terreno Realty Corp. | 448 | 25,106 | ||||||
UMH Properties, Inc. | 1,665 | 28,422 | ||||||
Uniti Group, Inc. | 1,834 | 21,843 | ||||||
Universal Health Realty Income Trust | 396 | 24,532 | ||||||
|
| |||||||
462,064 | ||||||||
Food & Staples Retailing 0.5% | ||||||||
BJ’s Wholesale Club Holdings, Inc.* | 590 | 23,706 | ||||||
Natural Grocers by Vitamin Cottage, Inc. | 1,558 | 21,937 | ||||||
PriceSmart, Inc. | 268 | 25,848 | ||||||
|
| |||||||
71,491 | ||||||||
Food Products 1.2% | ||||||||
Freshpet, Inc.* | 170 | 26,499 | ||||||
J&J Snack Foods Corp. | 164 | 26,037 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Food Products (cont'd.) | ||||||||
John B Sanfilippo & Son, Inc.(a) | 317 | $ | 27,408 | |||||
Mission Produce, Inc.* | 1,579 | 33,096 | ||||||
Sanderson Farms, Inc. | 176 | 26,840 | ||||||
Tootsie Roll Industries, Inc.(a) | 735 | 22,645 | ||||||
|
| |||||||
162,525 | ||||||||
Gas Utilities 0.9% | ||||||||
Brookfield Infrastructure Corp. (Canada) (Class A Stock) | 383 | 25,362 | ||||||
ONE Gas, Inc. | 354 | 23,707 | ||||||
RGC Resources, Inc. | 1,081 | 24,550 | ||||||
South Jersey Industries, Inc. | 1,131 | 28,400 | ||||||
Southwest Gas Holdings, Inc. | 423 | 26,374 | ||||||
|
| |||||||
128,393 | ||||||||
Health Care Equipment & Supplies 5.8% | ||||||||
Accuray, Inc.* | 5,049 | 25,144 | ||||||
Antares Pharma, Inc.* | 5,618 | 23,876 | ||||||
AtriCure, Inc.* | 440 | 28,719 | ||||||
Atrion Corp. | 36 | 22,496 | ||||||
AxoGen, Inc.* | 1,378 | 30,454 | ||||||
BioLife Solutions, Inc.* | 611 | 23,970 | ||||||
Cardiovascular Systems, Inc.* | 551 | 22,756 | ||||||
CONMED Corp. | 235 | 28,919 | ||||||
CytoSorbents Corp.* | 2,666 | 25,114 | ||||||
Electromed, Inc.* | 2,495 | 26,347 | ||||||
Heska Corp.* | 154 | 29,014 | ||||||
Inari Medical, Inc.* | 236 | 24,686 | ||||||
Integer Holdings Corp.* | 310 | 27,339 | ||||||
iRadimed Corp.* | 1,115 | 24,864 | ||||||
LeMaitre Vascular, Inc. | 548 | 28,162 | ||||||
LivaNova PLC (United Kingdom)* | 416 | 32,257 | ||||||
Meridian Bioscience, Inc.* | 1,098 | 23,146 | ||||||
Merit Medical Systems, Inc.* | 422 | 23,514 | ||||||
Misonix, Inc.* | 1,845 | 30,922 | ||||||
Natus Medical, Inc.* | 941 | 24,381 | ||||||
Neogen Corp.* | 299 | 24,494 | ||||||
Nevro Corp.* | 146 | 24,116 | ||||||
NuVasive, Inc.* | 451 | 27,209 | ||||||
OraSure Technologies, Inc.* | 1,783 | 18,900 | ||||||
Quotient Ltd. (Switzerland)* | 4,170 | 18,723 | ||||||
Repro-Med Systems, Inc.* | 5,000 | 19,400 | ||||||
Rockwell Medical, Inc.* | 17,568 | 23,717 |
See Notes to Financial Statements.
40 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Health Care Equipment & Supplies (cont'd.) | ||||||||
Silk Road Medical, Inc.* | 432 | $ | 23,661 | |||||
STAAR Surgical Co.* | 286 | 29,747 | ||||||
Tela Bio, Inc.* | 1,812 | 27,850 | ||||||
Utah Medical Products, Inc. | 298 | 25,151 | ||||||
Zynex, Inc.* | 1,376 | 19,979 | ||||||
|
| |||||||
809,027 | ||||||||
Health Care Providers & Services 3.0% | ||||||||
Accolade, Inc.* | 465 | 20,609 | ||||||
AMN Healthcare Services, Inc.* | 313 | 22,808 | ||||||
Apollo Medical Holdings, Inc.* | 1,066 | 26,383 | ||||||
CorVel Corp.* | 251 | 25,477 | ||||||
Ensign Group, Inc. (The)(a) | 323 | 26,492 | ||||||
Hanger, Inc.* | 1,108 | 24,354 | ||||||
InfuSystem Holdings, Inc.* | 1,449 | 24,720 | ||||||
LHC Group, Inc.* | 117 | 21,260 | ||||||
ModivCare, Inc.* | 153 | 19,624 | ||||||
National Research Corp. | 534 | 27,592 | ||||||
Option Care Health, Inc.* | 1,411 | 27,077 | ||||||
Pennant Group, Inc. (The)* | 411 | 21,693 | ||||||
RadNet, Inc.* | 1,323 | 24,396 | ||||||
Select Medical Holdings Corp.* | 920 | 29,118 | ||||||
Tivity Health, Inc.* | 1,164 | 27,703 | ||||||
US Physical Therapy, Inc. | 194 | 22,745 | ||||||
Viemed Healthcare, Inc.* | 2,891 | 27,262 | ||||||
|
| |||||||
419,313 | ||||||||
Health Care Technology 1.5% | ||||||||
Allscripts Healthcare Solutions, Inc.* | 1,504 | 23,207 | ||||||
Evolent Health, Inc. (Class A Stock)* | 1,325 | 26,699 | ||||||
Inovalon Holdings, Inc. (Class A Stock)* | 994 | 24,412 | ||||||
Inspire Medical Systems, Inc.* | 120 | 27,935 | ||||||
OptimizeRx Corp.* | 551 | 29,302 | ||||||
Schrodinger, Inc.* | 267 | 27,362 | ||||||
Simulations Plus, Inc. | 337 | 24,170 | ||||||
Vocera Communications, Inc.* | 562 | 24,076 | ||||||
|
| |||||||
207,163 | ||||||||
Hotels, Restaurants & Leisure 1.8% | ||||||||
Accel Entertainment, Inc. (Class A Stock)* | 2,570 | 28,501 | ||||||
Cracker Barrel Old Country Store, Inc. | 184 | 28,496 | ||||||
Golden Entertainment, Inc.* | 1,282 | 30,294 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Hotels, Restaurants & Leisure (cont'd.) | ||||||||
Jack in the Box, Inc. | 254 | $ | 25,997 | |||||
Marriott Vacations Worldwide Corp. | 194 | 32,924 | ||||||
Monarch Casino & Resort, Inc.* | 439 | 29,703 | ||||||
Papa John’s International, Inc. | 263 | 23,720 | ||||||
Texas Roadhouse, Inc. (Class A Stock) | 294 | 26,719 | ||||||
Wingstop, Inc. | 164 | 22,328 | ||||||
|
| |||||||
248,682 | ||||||||
Household Durables 2.6% | ||||||||
Cavco Industries, Inc.* | 136 | 28,684 | ||||||
GoPro, Inc. (Class A Stock)(a)* | 2,895 | 21,770 | ||||||
Installed Building Products, Inc.* | 224 | 24,497 | ||||||
iRobot Corp.* | 236 | 29,290 | ||||||
KB Home | 601 | 24,268 | ||||||
LGI Homes, Inc.* | 228 | 24,909 | ||||||
Lovesac Co. (The)* | 450 | 25,961 | ||||||
Meritage Homes Corp.* | 267 | 22,511 | ||||||
Purple Innovation, Inc. (Class A Stock)* | 655 | 24,097 | ||||||
Skyline Champion Corp.* | 748 | 33,099 | ||||||
Sonos, Inc.* | 929 | 36,175 | ||||||
Taylor Morrison Home Corp. (Class A Stock)* | 847 | 23,301 | ||||||
TopBuild Corp.(a)* | 109 | 20,755 | ||||||
Universal Electronics, Inc.* | 427 | 24,847 | ||||||
|
| |||||||
364,164 | ||||||||
Household Products 0.6% | ||||||||
Central Garden & Pet Co.* | 585 | 26,676 | ||||||
Central Garden & Pet Co. (Class A Stock)* | 631 | 26,193 | ||||||
WD-40 Co. | 85 | 26,499 | ||||||
|
| |||||||
79,368 | ||||||||
Independent Power & Renewable Electricity Producers 0.5% | ||||||||
Clearway Energy, Inc., | ||||||||
(Class A Stock) | 841 | 21,992 | ||||||
(Class C Stock) | 765 | 21,007 | ||||||
Ormat Technologies, Inc. | 238 | 20,389 | ||||||
|
| |||||||
63,388 | ||||||||
Industrial Conglomerates 0.2% | ||||||||
Raven Industries, Inc. | 694 | 27,205 |
See Notes to Financial Statements.
42 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Insuranc 0.7% | ||||||||
HCI Group, Inc. | 453 | $ | 26,215 | |||||
James River Group Holdings Ltd. (Bermuda) | 534 | 24,516 | ||||||
RLI Corp. | 249 | 25,981 | ||||||
Universal Insurance Holdings, Inc. | 1,599 | 23,809 | ||||||
|
| |||||||
100,521 | ||||||||
Interactive Media & Services 0.6% | ||||||||
Cargurus, Inc. (Class A Stock)* | 831 | 21,564 | ||||||
QuinStreet, Inc.* | 1,158 | 27,665 | ||||||
Yelp, Inc. (Class A Stock)* | 819 | 30,885 | ||||||
|
| |||||||
80,114 | ||||||||
Internet & Direct Marketing Retail 0.7% | ||||||||
Overstock.com, Inc.* | 381 | 25,592 | ||||||
PetMed Express, Inc.(a) | 731 | 25,373 | ||||||
Shutterstock, Inc. | 350 | 30,881 | ||||||
Stamps.com, Inc.* | 108 | 19,648 | ||||||
|
| |||||||
101,494 | ||||||||
IT Services 3.1% | ||||||||
Brightcove, Inc.* | 1,441 | 31,385 | ||||||
Cass Information Systems, Inc. | 629 | 27,097 | ||||||
CSG Systems International, Inc. | 568 | 26,213 | ||||||
EVERTEC, Inc. (Puerto Rico) | 699 | 27,191 | ||||||
ExlService Holdings, Inc.* | 282 | 23,863 | ||||||
Grid Dynamics Holdings, Inc.* | 1,905 | 28,404 | ||||||
Hackett Group, Inc. (The) | 1,749 | 27,319 | ||||||
International Money Express, Inc.* | 1,721 | 25,350 | ||||||
MAXIMUS, Inc. | 323 | 26,253 | ||||||
NIC, Inc. | 908 | 31,517 | ||||||
Perspecta, Inc. | 939 | 27,419 | ||||||
PFSweb, Inc.* | 3,685 | 25,869 | ||||||
Rackspace Technology, Inc.* | 1,287 | 27,053 | ||||||
Sykes Enterprises, Inc.* | 627 | 25,619 | ||||||
TTEC Holdings, Inc.(a) | 338 | 28,439 | ||||||
Unisys Corp.* | 1,070 | 26,269 | ||||||
|
| |||||||
435,260 | ||||||||
Leisure Products 1.3% | ||||||||
Acushnet Holdings Corp. | 620 | 26,176 | ||||||
Johnson Outdoors, Inc. (Class A Stock) | 225 | 27,153 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Leisure Products (cont'd.) | ||||||||
Malibu Boats, Inc. (Class A Stock)* | 349 | $ | 26,015 | |||||
Marine Products Corp. | 1,603 | 26,946 | ||||||
MasterCraft Boat Holdings, Inc.* | 904 | 23,170 | ||||||
Sturm Ruger & Co., Inc. | 381 | 25,984 | ||||||
YETI Holdings, Inc.* | 366 | 25,170 | ||||||
|
| |||||||
180,614 | ||||||||
Life Sciences Tools & Services 0.2% | ||||||||
Medpace Holdings, Inc.* | 185 | 30,050 | ||||||
Machinery 3.3% | ||||||||
Alamo Group, Inc. | 174 | 26,558 | ||||||
Albany International Corp. (Class A Stock) | 359 | 28,379 | ||||||
Douglas Dynamics, Inc. | 601 | 28,956 | ||||||
Federal Signal Corp. | 726 | 26,434 | ||||||
Franklin Electric Co., Inc. | 338 | 25,370 | ||||||
Gorman-Rupp Co. (The) | 786 | 25,144 | ||||||
Helios Technologies, Inc. | 469 | 30,673 | ||||||
John Bean Technologies Corp. | 190 | 28,038 | ||||||
Kadant, Inc. | 163 | 28,362 | ||||||
Meritor, Inc.* | 855 | 25,966 | ||||||
Mueller Water Products, Inc. (Class A Stock) | 1,906 | 24,568 | ||||||
Omega Flex, Inc. | 167 | 28,808 | ||||||
Rexnord Corp. | 576 | 25,891 | ||||||
Shyft Group, Inc. (The) | 816 | 26,838 | ||||||
SPX Corp.* | 401 | 22,292 | ||||||
Tennant Co. | 352 | 26,822 | ||||||
Watts Water Technologies, Inc. (Class A Stock) | 186 | 21,221 | ||||||
|
| |||||||
450,320 | ||||||||
Media 1.3% | ||||||||
AMC Networks, Inc. (Class A Stock)(a)* | 471 | 30,893 | ||||||
Daily Journal Corp.* | 77 | 26,357 | ||||||
Gray Television, Inc.* | 1,464 | 26,572 | ||||||
Meredith Corp.* | 1,234 | 30,578 | ||||||
TechTarget, Inc.* | 351 | 29,354 | ||||||
WideOpenWest, Inc.* | 2,282 | 32,062 | ||||||
|
| |||||||
175,816 | ||||||||
Metals & Mining 0.2% | ||||||||
Materion Corp. | 382 | 26,159 |
See Notes to Financial Statements.
44 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Multiline Retail 0.4% | ||||||||
Big Lots, Inc.(a) | 501 | $ | 31,833 | |||||
Franchise Group, Inc. | 774 | 27,152 | ||||||
|
| |||||||
58,985 | ||||||||
Oil, Gas & Consumable Fuels 0.2% | ||||||||
Dorian LPG Ltd.* | 2,162 | 26,917 | ||||||
Paper & Forest Products 0.2% | ||||||||
Louisiana-Pacific Corp. | 583 | 27,757 | ||||||
Personal Products 0.6% | ||||||||
Lifevantage Corp.* | 2,763 | 24,176 | ||||||
Medifast, Inc. | 111 | 28,082 | ||||||
USANA Health Sciences, Inc.* | 287 | 27,856 | ||||||
|
| |||||||
80,114 | ||||||||
Pharmaceuticals 5.5% | ||||||||
Agile Therapeutics, Inc.* | 8,549 | 24,536 | ||||||
Amneal Pharmaceuticals, Inc.* | 5,288 | 28,502 | ||||||
Amphastar Pharmaceuticals, Inc.* | 1,347 | 23,613 | ||||||
ANI Pharmaceuticals, Inc.* | 798 | 23,222 | ||||||
Aquestive Therapeutics, Inc.* | 4,539 | 20,789 | ||||||
BioDelivery Sciences International, Inc.* | 6,107 | 25,649 | ||||||
Cara Therapeutics, Inc.* | 1,305 | 23,947 | ||||||
Cerecor, Inc.* | 7,964 | 26,839 | ||||||
Chiasma, Inc.* | 6,302 | 24,515 | ||||||
Collegium Pharmaceutical, Inc.* | 1,026 | 24,203 | ||||||
Corcept Therapeutics, Inc.* | 898 | 22,585 | ||||||
Durect Corp.* | 10,481 | 23,268 | ||||||
Harrow Health, Inc.* | 2,965 | 22,741 | ||||||
IMARA, Inc.* | 1,865 | 23,480 | ||||||
Innoviva, Inc.* | 2,085 | 23,831 | ||||||
Intra-Cellular Therapies, Inc.* | 756 | 26,785 | ||||||
Lyra Therapeutics, Inc.* | 2,368 | 35,330 | ||||||
NGM Biopharmaceuticals, Inc.* | 918 | 24,529 | ||||||
Pacira BioSciences, Inc.* | 367 | 26,974 | ||||||
Phathom Pharmaceuticals, Inc.* | 642 | 28,280 | ||||||
Phibro Animal Health Corp. (Class A Stock) | 1,201 | 25,906 | ||||||
Pliant Therapeutics, Inc.* | 941 | 31,138 | ||||||
Prestige Consumer Healthcare, Inc.* | 653 | 27,237 | ||||||
Provention Bio, Inc.* | 1,765 | 22,451 | ||||||
Relmada Therapeutics, Inc.* | 721 | 24,038 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Pharmaceuticals (cont'd.) | ||||||||
SIGA Technologies, Inc.* | 3,733 | $ | 23,593 | |||||
Strongbridge Biopharma PLC* | 8,483 | 26,637 | ||||||
Supernus Pharmaceuticals, Inc.* | 794 | 21,335 | ||||||
Verrica Pharmaceuticals, Inc.* | 2,078 | 28,489 | ||||||
Zogenix, Inc.* | 1,307 | 27,721 | ||||||
|
| |||||||
762,163 | ||||||||
Professional Services 2.3% | ||||||||
ASGN, Inc.* | 268 | 24,916 | ||||||
CBIZ, Inc.* | 947 | 28,552 | ||||||
CRA International, Inc. | 448 | 24,716 | ||||||
Exponent, Inc. | 250 | 24,117 | ||||||
Forrester Research, Inc.* | 610 | 27,560 | ||||||
Franklin Covey Co.* | 1,024 | 26,327 | ||||||
ICF International, Inc. | 284 | 23,700 | ||||||
Insperity, Inc. | 279 | 24,747 | ||||||
KBR, Inc. | 768 | 23,808 | ||||||
Kforce, Inc. | 556 | 28,551 | ||||||
ManTech International Corp. (Class A Stock) | 258 | 20,165 | ||||||
Mastech Digital, Inc.* | 1,459 | 23,344 | ||||||
TriNet Group, Inc.* | 303 | 24,322 | ||||||
|
| |||||||
324,825 | ||||||||
Real Estate Management & Development 0.6% | ||||||||
Cushman & Wakefield PLC* | 1,743 | 26,982 | ||||||
Marcus & Millichap, Inc.* | 630 | 23,858 | ||||||
RMR Group, Inc. (The) (Class A Stock) | 684 | 27,490 | ||||||
|
| |||||||
78,330 | ||||||||
Road & Rail 0.7% | ||||||||
Marten Transport Ltd. | 1,426 | 23,073 | ||||||
Saia, Inc.* | 144 | 28,876 | ||||||
Universal Logistics Holdings, Inc. | 1,121 | 26,243 | ||||||
Werner Enterprises, Inc.(a) | 582 | 24,979 | ||||||
|
| |||||||
103,171 | ||||||||
Semiconductors & Semiconductor Equipment 4.5% | ||||||||
Advanced Energy Industries, Inc. | 224 | 23,397 | ||||||
Amkor Technology, Inc. | 1,481 | 35,381 | ||||||
Axcelis Technologies, Inc.* | 649 | 23,929 |
See Notes to Financial Statements.
46 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Semiconductors & Semiconductor Equipment (cont'd.) | ||||||||
Brooks Automation, Inc. | 315 | $ | 26,195 | |||||
CEVA, Inc.* | 383 | 23,451 | ||||||
CMC Materials, Inc. | 156 | 26,598 | ||||||
Cohu, Inc.* | 544 | 23,637 | ||||||
CyberOptics Corp.* | 986 | 26,376 | ||||||
Diodes, Inc.* | 335 | 26,304 | ||||||
DSP Group, Inc.* | 1,408 | 21,923 | ||||||
FormFactor, Inc.* | 528 | 23,955 | ||||||
Ichor Holdings Ltd.* | 636 | 27,195 | ||||||
Lattice Semiconductor Corp.* | 634 | 30,508 | ||||||
MACOM Technology Solutions Holdings, Inc.* | 421 | 27,091 | ||||||
NeoPhotonics Corp.* | 2,112 | 20,296 | ||||||
NVE Corp. | 362 | 25,510 | ||||||
Onto Innovation, Inc.* | 443 | 27,670 | ||||||
PDF Solutions, Inc.* | 1,162 | 21,334 | ||||||
Power Integrations, Inc. | 276 | 24,390 | ||||||
Semtech Corp.* | 312 | 22,873 | ||||||
Silicon Laboratories, Inc.* | 182 | 28,345 | ||||||
SMART Global Holdings, Inc.* | 695 | 32,450 | ||||||
Synaptics, Inc.* | 225 | 30,157 | ||||||
Ultra Clean Holdings, Inc.* | 600 | 27,828 | ||||||
|
| |||||||
626,793 | ||||||||
Software 7.0% | ||||||||
A10 Networks, Inc.* | 2,646 | 24,714 | ||||||
ACI Worldwide, Inc.* | 665 | 25,443 | ||||||
Agilysys, Inc.* | 530 | 31,583 | ||||||
Alarm.com Holdings, Inc.* | 262 | 23,025 | ||||||
Altair Engineering, Inc. (Class A Stock)* | 453 | 27,900 | ||||||
American Software, Inc. (Class A Stock) | 1,271 | 25,674 | ||||||
Appfolio, Inc. (Class A Stock)* | 165 | 27,063 | ||||||
Benefitfocus, Inc.* | 1,851 | 28,135 | ||||||
Blackbaud, Inc. | 390 | 26,840 | ||||||
Bottomline Technologies DE, Inc.* | 504 | 22,620 | ||||||
Box, Inc. (Class A Stock)* | 1,460 | 26,791 | ||||||
ChannelAdvisor Corp.* | 1,187 | 26,826 | ||||||
Cloudera, Inc.* | 1,680 | 27,115 | ||||||
Cognyte Software Ltd. (Israel)* | 339 | 9,787 | ||||||
CommVault Systems, Inc.* | 461 | 29,380 | ||||||
Cornerstone OnDemand, Inc.* | 591 | 29,857 | ||||||
Ebix, Inc.(a) | 555 | 13,531 | ||||||
eGain Corp.* | 2,130 | 24,751 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Software (cont'd.) | ||||||||
Envestnet, Inc.* | 310 | $ | 19,846 | |||||
Intelligent Systems Corp.* | 651 | 25,832 | ||||||
InterDigital, Inc.(a) | 386 | 24,461 | ||||||
J2 Global, Inc.* | 253 | 28,179 | ||||||
Mimecast Ltd.* | 556 | 23,841 | ||||||
Mitek Systems, Inc.* | 1,410 | 21,545 | ||||||
OneSpan, Inc.* | 1,055 | 24,645 | ||||||
Ping Identity Holding Corp.* | 832 | 19,494 | ||||||
Progress Software Corp. | 599 | 25,481 | ||||||
QAD, Inc. (Class A Stock) | 384 | 24,653 | ||||||
Qualys, Inc.* | 182 | 17,683 | ||||||
Rimini Street, Inc.* | 3,499 | 27,187 | ||||||
Sapiens International Corp. NV (Israel) | 774 | 24,288 | ||||||
ShotSpotter, Inc.* | 504 | 21,158 | ||||||
Smith Micro Software, Inc.* | 3,822 | 25,225 | ||||||
SPS Commerce, Inc.* | 236 | 23,772 | ||||||
Tenable Holdings, Inc.* | 475 | 19,432 | ||||||
Upland Software, Inc.* | 528 | 26,099 | ||||||
Varonis Systems, Inc. (Class B Stock)* | 142 | 26,063 | ||||||
Verint Systems, Inc.* | 339 | 16,709 | ||||||
VirnetX Holding Corp.(a) | 4,588 | 31,932 | ||||||
Xperi Holding Corp. | 1,206 | 25,447 | ||||||
|
| |||||||
974,007 | ||||||||
Specialty Retail 2.5% | ||||||||
Aaron’s Co., Inc. (The)* | 1,227 | 26,945 | ||||||
Academy Sports & Outdoors, Inc.* | 1,082 | 25,925 | ||||||
America’s Car-Mart, Inc.* | 207 | 27,945 | ||||||
Asbury Automotive Group, Inc.* | 164 | 27,790 | ||||||
Boot Barn Holdings, Inc.* | 429 | 25,920 | ||||||
Lumber Liquidators Holdings, Inc.* | 838 | 20,757 | ||||||
Murphy USA, Inc. | 204 | 25,429 | ||||||
National Vision Holdings, Inc.* | 539 | 25,597 | ||||||
OneWater Marine, Inc. (Class A Stock)* | 757 | 26,957 | ||||||
Rent-A-Center, Inc. | 552 | 31,883 | ||||||
RH* | 51 | 25,009 | ||||||
Sleep Number Corp.* | 255 | 34,968 | ||||||
Winmark Corp. | 144 | 25,414 | ||||||
|
| |||||||
350,539 |
See Notes to Financial Statements.
48 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Technology Hardware, Storage & Peripherals 0.4% | ||||||||
Avid Technology, Inc.* | 1,351 | $ | 26,196 | |||||
Super Micro Computer, Inc.* | 739 | 24,113 | ||||||
|
| |||||||
50,309 | ||||||||
Textiles, Apparel & Luxury Goods 0.6% | ||||||||
Crocs, Inc.* | 347 | 26,622 | ||||||
Deckers Outdoor Corp.* | 84 | 27,393 | ||||||
Steven Madden Ltd. | 736 | 27,225 | ||||||
|
| |||||||
81,240 | ||||||||
Thrifts & Mortgage Finance 1.2% | ||||||||
Axos Financial, Inc.* | 623 | 28,826 | ||||||
Columbia Financial, Inc.* | 1,655 | 27,043 | ||||||
Federal Agricultural Mortgage Corp. (Class C Stock) | 324 | 27,945 | ||||||
Kearny Financial Corp. | 2,468 | 28,012 | ||||||
PennyMac Financial Services, Inc. | 420 | 24,868 | ||||||
Walker & Dunlop, Inc. | 285 | 28,403 | ||||||
|
| |||||||
165,097 | ||||||||
Tobacco 0.2% | ||||||||
Turning Point Brands, Inc. | 569 | 27,995 | ||||||
Trading Companies & Distributors 1.8% | ||||||||
Applied Industrial Technologies, Inc. | 332 | 28,343 | ||||||
Boise Cascade Co. | 476 | 23,771 | ||||||
CAI International, Inc. | 764 | 33,616 | ||||||
Herc Holdings, Inc.* | 368 | 32,296 | ||||||
Lawson Products, Inc.* | 492 | 26,076 | ||||||
McGrath RentCorp | 328 | 25,472 | ||||||
SiteOne Landscape Supply, Inc.* | 152 | 24,094 | ||||||
Systemax, Inc. | 652 | 23,537 | ||||||
Transcat, Inc.* | 691 | 30,978 | ||||||
|
| |||||||
248,183 | ||||||||
Water Utilities 0.9% | ||||||||
American States Water Co. | 318 | 23,230 | ||||||
California Water Service Group | 463 | 25,442 | ||||||
Middlesex Water Co. | 350 | 24,034 | ||||||
SJW Group | 377 | 23,630 | ||||||
York Water Co. (The) | 560 | 23,302 | ||||||
|
| |||||||
119,638 |
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, 2021
Description | Shares | Value | ||||||||||||||
COMMON STOCKS (Continued) | ||||||||||||||||
Wireless Telecommunication Services 0.2% | ||||||||||||||||
Shenandoah Telecommunications Co. | 581 | $ | 25,767 | |||||||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS |
| 13,822,630 | ||||||||||||||
|
| |||||||||||||||
SHORT-TERM INVESTMENTS 2.4% |
| |||||||||||||||
AFFILIATED MUTUAL FUND 2.3% | ||||||||||||||||
PGIM Institutional Money Market Fund |
| 321,496 | 321,335 | |||||||||||||
|
| |||||||||||||||
Interest | Maturity Date | Principal Amount (000)# | ||||||||||||||
TIME DEPOSIT 0.1% |
| |||||||||||||||
Brown Brothers Harriman & Co. (Cayman Islands) (cost $14,398) | 0.005 | % | 03/01/21 | 14 | 14,398 | |||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS |
| 335,733 | ||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 102.3% |
| 14,158,363 | ||||||||||||||
Liabilities in excess of other assets (2.3)% |
| (317,785 | ) | |||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% |
| $ | 13,840,578 | |||||||||||||
|
|
The following abbreviations are used in the semi-annual report:
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
^ | Indicates a Level 3 instrument. The aggregate value of Level 3 instruments is $0 and 0.0% of net assets. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $316,658; cash collateral of $321,190 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
* | Non-income producing security. |
See Notes to Financial Statements.
50 |
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, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 69,533 | $ | — | $ | — | ||||||
Air Freight & Logistics | 79,755 | — | — | |||||||||
Auto Components | 187,199 | — | — | |||||||||
Automobiles | 25,404 | — | — | |||||||||
Banks | 167,514 | — | — | |||||||||
Beverages | 76,778 | — | — | |||||||||
Biotechnology | 1,949,565 | — | — | |||||||||
Building Products | 260,988 | — | — | |||||||||
Capital Markets | 348,644 | — | — | |||||||||
Chemicals | 370,663 | — | — | |||||||||
Commercial Services & Supplies | 131,163 | — | — | |||||||||
Communications Equipment | 211,080 | — | — | |||||||||
Construction & Engineering | 209,609 | — | — | |||||||||
Consumer Finance | 102,486 | — | — | |||||||||
Containers & Packaging | 48,598 | — | — | |||||||||
Distributors | 24,826 | — | — | |||||||||
Diversified Consumer Services | 51,868 | — | — | |||||||||
Diversified Telecommunication Services | 105,127 | — | — | |||||||||
Electric Utilities | 96,823 | — | — | |||||||||
Electrical Equipment | 111,440 | — | — | |||||||||
Electronic Equipment, Instruments & Components | 371,336 | — | — | |||||||||
Energy Equipment & Services | 32,251 | — | — | |||||||||
Entertainment | 35,019 | — | — | |||||||||
Equity Real Estate Investment Trusts (REITs) | 462,064 | — | — | |||||||||
Food & Staples Retailing | 71,491 | — | — |
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, 2021
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Assets (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Food Products | $ | 162,525 | $ | — | $ | — | ||||||
Gas Utilities | 128,393 | — | — | |||||||||
Health Care Equipment & Supplies | 809,027 | — | — | |||||||||
Health Care Providers & Services | 419,313 | — | — | |||||||||
Health Care Technology | 207,163 | — | — | |||||||||
Hotels, Restaurants & Leisure | 248,682 | — | — | |||||||||
Household Durables | 364,164 | — | — | |||||||||
Household Products | 79,368 | — | — | |||||||||
Independent Power & Renewable Electricity Producers | 63,388 | — | — | |||||||||
Industrial Conglomerates | 27,205 | — | — | |||||||||
Insurance | 100,521 | — | — | |||||||||
Interactive Media & Services | 80,114 | — | — | |||||||||
Internet & Direct Marketing Retail | 101,494 | — | — | |||||||||
IT Services | 435,260 | — | — | |||||||||
Leisure Products | 180,614 | — | — | |||||||||
Life Sciences Tools & Services | 30,050 | — | — | |||||||||
Machinery | 450,320 | — | — | |||||||||
Media | 175,816 | — | — | |||||||||
Metals & Mining | 26,159 | — | — | |||||||||
Multiline Retail | 58,985 | — | — | |||||||||
Oil, Gas & Consumable Fuels | 26,917 | — | — | |||||||||
Paper & Forest Products | 27,757 | — | — | |||||||||
Personal Products | 80,114 | — | — | |||||||||
Pharmaceuticals | 762,163 | — | — | |||||||||
Professional Services | 324,825 | — | — | |||||||||
Real Estate Management & Development | 78,330 | — | — | |||||||||
Road & Rail | 103,171 | — | — | |||||||||
Semiconductors & Semiconductor Equipment | 626,793 | — | — | |||||||||
Software | 974,007 | — | — | |||||||||
Specialty Retail | 350,539 | — | — | |||||||||
Technology Hardware, Storage & Peripherals | 50,309 | — | — | |||||||||
Textiles, Apparel & Luxury Goods | 81,240 | — | — | |||||||||
Thrifts & Mortgage Finance | 165,097 | — | — | |||||||||
Tobacco | 27,995 | — | — | |||||||||
Trading Companies & Distributors | 248,183 | — | — | |||||||||
Water Utilities | 119,638 | — | — | |||||||||
Wireless Telecommunication Services | 25,767 | — | — | |||||||||
Affiliated Mutual Fund | 321,335 | — | — | |||||||||
Time Deposit | — | 14,398 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 14,143,965 | $ | 14,398 | $ | — | ||||||
|
|
|
|
|
|
See Notes to Financial Statements.
52 |
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of February 28, 2021 were as follows:
Biotechnology | 14.1 | % | ||
Software | 7.0 | |||
Health Care Equipment & Supplies | 5.8 | |||
Pharmaceuticals | 5.5 | |||
Semiconductors & Semiconductor Equipment | 4.5 | |||
Equity Real Estate Investment Trusts (REITs) | 3.3 | |||
Machinery | 3.3 | |||
IT Services | 3.1 | |||
Health Care Providers & Services | 3.0 | |||
Electronic Equipment, Instruments & Components | 2.7 | |||
Chemicals | 2.7 | |||
Household Durables | 2.6 | |||
Specialty Retail | 2.5 | |||
Capital Markets | 2.5 | |||
Professional Services | 2.3 | |||
Affiliated Mutual Fund (2.3% represents investments purchased with collateral from securities on loan) | 2.3 | |||
Building Products | 1.9 | |||
Hotels, Restaurants & Leisure | 1.8 | |||
Trading Companies & Distributors | 1.8 | |||
Communications Equipment | 1.5 | |||
Construction & Engineering | 1.5 | |||
Health Care Technology | 1.5 | |||
Auto Components | 1.4 | |||
Leisure Products | 1.3 | |||
Media | 1.3 | |||
Banks | 1.2 | |||
Thrifts & Mortgage Finance | 1.2 | |||
Food Products | 1.2 | |||
Commercial Services & Supplies | 0.9 | |||
Gas Utilities | 0.9 | |||
Water Utilities | 0.9 | |||
Electrical Equipment | 0.8 | |||
Diversified Telecommunication Services | 0.8 | |||
Road & Rail | 0.7 | |||
Consumer Finance | 0.7 | |||
Internet & Direct Marketing Retail | 0.7 | |||
Insurance | 0.7 | |||
Electric Utilities | 0.7 | |||
Textiles, Apparel & Luxury Goods | 0.6 | |||
Personal Products | 0.6 | |||
Interactive Media & Services | 0.6 | |||
Air Freight & Logistics | 0.6 | |||
Household Products | 0.6 | |||
Real Estate Management & Development | 0.6 | |||
Beverages | 0.6 | |||
Food & Staples Retailing | 0.5 | |||
Aerospace & Defense | 0.5 | |||
Independent Power & Renewable Electricity Producers | 0.5 | |||
Multiline Retail | 0.4 | |||
Diversified Consumer Services | 0.4 | |||
Technology Hardware, Storage & Peripherals | 0.4 | |||
Containers & Packaging | 0.4 | |||
Entertainment | 0.3 | |||
Energy Equipment & Services | 0.2 | |||
Life Sciences Tools & Services | 0.2 | |||
Tobacco | 0.2 | |||
Paper & Forest Products | 0.2 | |||
Industrial Conglomerates | 0.2 | |||
Oil, Gas & Consumable Fuels | 0.2 | |||
Metals & Mining | 0.2 | |||
Wireless Telecommunication Services | 0.2 | |||
Automobiles | 0.2 | |||
Distributors | 0.2 | |||
Time Deposit | 0.1 | |||
|
| |||
102.3 | ||||
Liabilities in excess of other assets | (2.3 | ) | ||
|
| |||
100.0 | % | |||
|
|
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, 2021
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions, where the legal right to set-off exists, is presented in the summary below:
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||||||||
Securities on Loan | $ | 316,658 | $ | (316,658 | ) | $ | — | |||||
|
|
|
|
|
|
(1) | Collateral amount disclosed by the Fund is limited to the market value of the financial instruments/transactions. |
See Notes to Financial Statements.
54 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Statement of Assets & Liabilities (unaudited)
as of February 28, 2021
Assets | ||||
Investments at value, including securities on loan of $316,658: | ||||
Unaffiliated investments (cost $11,040,240) | $ | 13,837,028 | ||
Affiliated investments (cost $321,233) | 321,335 | |||
Interest and dividends receivable | 6,956 | |||
|
| |||
Total Assets | 14,165,319 | |||
|
| |||
Liabilities | ||||
Payable to broker for collateral for securities on loan | 321,190 | |||
Management fee payable | 3,130 | |||
Other liabilities | 421 | |||
|
| |||
Total Liabilities | 324,741 | |||
|
| |||
Net Assets | $ | 13,840,578 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 200 | ||
Paid-in capital in excess of par | 10,026,684 | |||
Total distributable earnings (loss) | 3,813,694 | |||
|
| |||
Net assets, February 28, 2021 | $ | 13,840,578 | ||
|
| |||
Net asset value, offering price and redemption price per share, | $ | 69.20 | ||
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 55 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Statement of Operations (unaudited)
Six Months Ended February 28, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 8 | ||
Unaffiliated dividend income (net of $81 foreign withholding tax) | 42,729 | |||
Income from securities lending, net (including affiliated income of $533) | 1,698 | |||
Miscellaneous Income | 10 | |||
|
| |||
Total income | 44,445 | |||
|
| |||
Expenses | ||||
Management fee | 16,933 | |||
|
| |||
Total expenses | 16,933 | |||
|
| |||
Net investment income (loss) | 27,512 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(151)) | 1,800,636 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $13) | 1,864,466 | |||
|
| |||
Net gain (loss) on investment transactions | 3,665,102 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 3,692,614 | ||
|
|
See Notes to Financial Statements.
56 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Statements of Changes in Net Assets
Six Months Ended | Year Ended August 31, 2020 | |||||||
Increase (Decrease) in Net Assets |
| |||||||
Operations |
| |||||||
Net investment income (loss) | $ | 27,512 | $ | 72,636 | ||||
Net realized gain (loss) on investments | 1,800,636 | (637,993 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments | 1,864,466 | 1,292,987 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 3,692,614 | 727,630 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | (87,668 | ) | (85,196 | ) | ||||
|
|
|
| |||||
Total increase (decrease) | 3,604,946 | 642,434 | ||||||
Net Assets: | ||||||||
Beginning of period | 10,235,632 | 9,593,198 | ||||||
|
|
|
| |||||
End of period | $ | 13,840,578 | $ | 10,235,632 | ||||
|
|
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 57 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited)
as of February 28, 2021
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.4% | ||||||||
COMMON STOCKS 99.4% | ||||||||
Aerospace & Defense 0.9% | ||||||||
AAR Corp. | 397 | $ | 15,793 | |||||
Ducommun, Inc.* | 283 | 15,395 | ||||||
Kaman Corp. | 249 | 12,116 | ||||||
Moog, Inc. (Class A Stock) | 193 | 14,988 | ||||||
National Presto Industries, Inc. | 152 | 15,554 | ||||||
Parsons Corp.* | 375 | 13,403 | ||||||
Vectrus, Inc.* | 261 | 14,251 | ||||||
|
| |||||||
101,500 | ||||||||
Air Freight & Logistics 0.6% | ||||||||
Atlas Air Worldwide Holdings, Inc.* | 275 | 15,161 | ||||||
Echo Global Logistics, Inc.* | 479 | 13,345 | ||||||
Forward Air Corp. | 182 | 15,610 | ||||||
Hub Group, Inc. (Class A Stock)* | 246 | 14,165 | ||||||
Radiant Logistics, Inc.* | 2,311 | 15,645 | ||||||
|
| |||||||
73,926 | ||||||||
Airlines 0.4% | ||||||||
Mesa Air Group, Inc.* | 2,257 | 27,535 | ||||||
SkyWest, Inc. | 330 | 18,602 | ||||||
|
| |||||||
46,137 | ||||||||
Auto Components 1.0% | ||||||||
Cooper Tire & Rubber Co. | 375 | 21,465 | ||||||
Dana, Inc.* | 700 | 16,667 | ||||||
Goodyear Tire & Rubber Co. (The)* | 1,331 | 22,374 | ||||||
Modine Manufacturing Co.* | 1,079 | 14,966 | ||||||
Motorcar Parts of America, Inc.* | 692 | 14,726 | ||||||
Patrick Industries, Inc. | 210 | 16,575 | ||||||
Standard Motor Products, Inc. | 351 | 14,745 | ||||||
|
| |||||||
121,518 | ||||||||
Banks 20.7% | ||||||||
1st Constitution Bancorp | 954 | 16,743 | ||||||
ACNB Corp. | 555 | 15,324 | ||||||
Allegiance Bancshares, Inc. | 398 | 14,985 | ||||||
Altabancorp | 433 | 14,904 | ||||||
Amalgamated Bank (Class A Stock) | 967 | 16,981 | ||||||
American National Bankshares, Inc. | 488 | 15,128 | ||||||
Ameris Bancorp | 335 | 15,959 |
See Notes to Financial Statements.
58 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont'd.) | ||||||||
Ames National Corp. | 597 | $ | 13,647 | |||||
Auburn National BanCorp, Inc. | 359 | 14,037 | ||||||
Bank of Commerce Holdings | 1,449 | 15,751 | ||||||
Bank of Princeton (The) | 645 | 16,944 | ||||||
BankFinancial Corp. | 1,638 | 15,479 | ||||||
Bankwell Financial Group, Inc. | 693 | 17,186 | ||||||
Banner Corp. | 292 | 15,120 | ||||||
Bar Harbor Bankshares | 637 | 17,830 | ||||||
BayCom Corp.* | 975 | 16,663 | ||||||
BCB Bancorp, Inc. | 1,252 | 16,564 | ||||||
Berkshire Hills Bancorp, Inc. | 770 | 15,523 | ||||||
Bryn Mawr Bank Corp. | 407 | 15,397 | ||||||
Business First Bancshares, Inc. | 696 | 15,291 | ||||||
Byline Bancorp, Inc. | 901 | 17,948 | ||||||
C&F Financial Corp. | 354 | 15,399 | ||||||
Cambridge Bancorp | 206 | 15,701 | ||||||
Camden National Corp. | 392 | 15,888 | ||||||
Capital Bancorp, Inc.* | 1,101 | 17,561 | ||||||
Capital City Bank Group, Inc. | 604 | 14,913 | ||||||
Capstar Financial Holdings, Inc. | 1,073 | 17,393 | ||||||
Carter Bankshares, Inc.* | 1,308 | 15,474 | ||||||
CB Financial Services, Inc. | 768 | 15,629 | ||||||
CBTX, Inc. | 527 | 15,373 | ||||||
Central Valley Community Bancorp | 923 | 16,309 | ||||||
Chemung Financial Corp. | 430 | 15,140 | ||||||
ChoiceOne Financial Services, Inc. | 519 | 13,172 | ||||||
Citizens & Northern Corp. | 706 | 14,770 | ||||||
Civista Bancshares, Inc. | 814 | 15,653 | ||||||
CNB Financial Corp. | 694 | 16,108 | ||||||
Codorus Valley Bancorp, Inc. | 867 | 14,609 | ||||||
Colony Bankcorp, Inc. | 986 | 14,149 | ||||||
Community Bankers Trust Corp. | 2,057 | 15,962 | ||||||
Community Financial Corp. (The) | 546 | 16,544 | ||||||
Community Trust Bancorp, Inc. | 355 | 14,505 | ||||||
ConnectOne Bancorp, Inc. | 716 | 16,633 | ||||||
County Bancorp, Inc. | 665 | 15,036 | ||||||
Dime Community Bancshares, Inc. | 1,176 | 34,586 | ||||||
Eagle Bancorp Montana, Inc. | 701 | 15,261 | ||||||
Eagle Bancorp, Inc. | 328 | 16,036 | ||||||
Eastern Bankshares, Inc.* | 897 | 15,796 | ||||||
Enterprise Bancorp, Inc. | 498 | 14,442 | ||||||
Equity Bancshares, Inc. (Class A Stock)* | 682 | 17,732 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 59 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont'd.) | ||||||||
Esquire Financial Holdings, Inc.* | 596 | $ | 13,303 | |||||
Evans Bancorp, Inc. | 483 | 15,649 | ||||||
Farmers & Merchants Bancorp, Inc. | 613 | 14,130 | ||||||
Farmers National Banc Corp. | 1,063 | 14,712 | ||||||
Financial Institutions, Inc. | 663 | 18,153 | ||||||
First BanCorp (Puerto Rico) | 1,492 | 15,651 | ||||||
First Bancorp, Inc. (The) | 567 | 14,493 | ||||||
First Bancshares, Inc. (The) | 446 | 14,303 | ||||||
First Bank | 1,518 | 16,015 | ||||||
First Busey Corp. | 636 | 14,558 | ||||||
First Business Financial Services, Inc. | 708 | 15,718 | ||||||
First Choice Bancorp | 783 | 15,496 | ||||||
First Commonwealth Financial Corp. | 1,249 | 16,749 | ||||||
First Community Bankshares, Inc. | 647 | 16,602 | ||||||
First Community Corp. | 806 | 14,363 | ||||||
First Financial Corp. | 362 | 15,342 | ||||||
First Foundation, Inc. | 682 | 15,584 | ||||||
First Guaranty Bancshares, Inc. | 816 | 13,513 | ||||||
First Internet Bancorp | 454 | 14,868 | ||||||
First Interstate BancSystem, Inc. (Class A Stock) | �� | 353 | 16,033 | |||||
First Mid Bancshares, Inc. | 391 | 14,228 | ||||||
First Midwest Bancorp, Inc. | 818 | 16,180 | ||||||
First Northwest Bancorp | 896 | 14,587 | ||||||
First of Long Island Corp. (The) | 820 | 15,236 | ||||||
First Savings Financial Group, Inc. | 239 | 14,940 | ||||||
First United Corp. | 878 | 15,892 | ||||||
First Western Financial, Inc.* | 807 | 14,728 | ||||||
Flushing Financial Corp. | 763 | 15,832 | ||||||
FNCB Bancorp, Inc. | 2,367 | 16,664 | ||||||
Franklin Financial Services Corp. | 482 | 13,236 | ||||||
Guaranty Bancshares, Inc. | 484 | 14,762 | ||||||
Hanmi Financial Corp. | 1,275 | 21,828 | ||||||
HarborOne Bancorp, Inc. | 1,314 | 15,702 | ||||||
Hawthorn Bancshares, Inc. | 729 | 14,682 | ||||||
HBT Financial, Inc. | 908 | 14,655 | ||||||
Heartland Financial USA, Inc. | 337 | 15,751 | ||||||
Hilltop Holdings, Inc. | 446 | 14,736 | ||||||
Home BancShares, Inc.(a) | 674 | 16,473 | ||||||
HomeTrust Bancshares, Inc. | 747 | 17,286 | ||||||
Hope Bancorp, Inc. | 1,190 | 15,660 | ||||||
Horizon Bancorp, Inc. | 855 | 15,270 | ||||||
Howard Bancorp, Inc.* | 1,140 | 15,675 |
See Notes to Financial Statements.
60 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont'd.) | ||||||||
Independent Bank Corp. | 738 | $ | 15,254 | |||||
International Bancshares Corp. | 345 | 15,035 | ||||||
Investar Holding Corp. | 847 | 16,262 | ||||||
Investors Bancorp, Inc. | 1,227 | 16,368 | ||||||
Lakeland Bancorp, Inc. | 1,009 | 15,821 | ||||||
LCNB Corp. | 930 | 15,782 | ||||||
Level One Bancorp, Inc. | 718 | 15,365 | ||||||
Limestone Bancorp, Inc.* | 1,007 | 15,165 | ||||||
Macatawa Bank Corp. | 1,547 | 13,660 | ||||||
Mackinac Financial Corp. | 1,105 | 14,254 | ||||||
MainStreet Bancshares, Inc.* | 752 | 13,987 | ||||||
Mercantile Bank Corp. | 507 | 14,825 | ||||||
Meridian Corp. | 672 | 16,424 | ||||||
Metrocity Bankshares, Inc. | 984 | 14,061 | ||||||
Metropolitan Bank Holding Corp.* | 368 | 19,037 | ||||||
Mid Penn Bancorp, Inc. | 652 | 15,335 | ||||||
Middlefield Banc Corp. | 749 | 16,755 | ||||||
Midland States Bancorp, Inc. | 785 | 19,232 | ||||||
MidWestOne Financial Group, Inc. | 570 | 15,641 | ||||||
MVB Financial Corp. | 663 | 21,614 | ||||||
National Bank Holdings Corp. (Class A Stock) | 414 | 16,042 | ||||||
Northeast Bank | 600 | 15,582 | ||||||
Northrim BanCorp, Inc. | 400 | 15,396 | ||||||
Oak Valley Bancorp | 894 | 14,447 | ||||||
OceanFirst Financial Corp. | 730 | 15,863 | ||||||
OFG Bancorp (Puerto Rico) | 836 | 16,143 | ||||||
Ohio Valley Banc Corp. | 622 | 15,108 | ||||||
Old National Bancorp | 821 | 14,885 | ||||||
Old Second Bancorp, Inc. | 1,322 | 15,824 | ||||||
Origin Bancorp, Inc. | 484 | 16,582 | ||||||
Orrstown Financial Services, Inc. | 797 | 15,526 | ||||||
Parke Bancorp, Inc. | 783 | 14,211 | ||||||
Partners Bancorp | 2,271 | 16,147 | ||||||
PCB Bancorp | 1,146 | 15,964 | ||||||
Peapack Gladstone Financial Corp. | 580 | 15,956 | ||||||
Penns Woods Bancorp, Inc. | 633 | 15,084 | ||||||
Peoples Bancorp of North Carolina, Inc. | 643 | 15,033 | ||||||
Peoples Financial Services Corp. | 371 | 15,537 | ||||||
Plumas Bancorp | 588 | 14,706 | ||||||
Premier Financial Bancorp, Inc. | 950 | 14,763 | ||||||
QCR Holdings, Inc. | 363 | 15,028 | ||||||
RBB Bancorp | 900 | 16,920 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Banks (cont'd.) | ||||||||
Red River Bancshares, Inc. | 282 | $ | 14,636 | |||||
Reliant Bancorp, Inc. | 744 | 16,450 | ||||||
Renasant Corp. | 381 | 14,966 | ||||||
Republic Bancorp, Inc. (Class A Stock) | 362 | 15,218 | ||||||
Republic First Bancorp, Inc.* | 4,971 | 17,647 | ||||||
Richmond Mutual BanCorp, Inc. | 1,094 | 14,310 | ||||||
Salisbury Bancorp, Inc. | 391 | 15,957 | ||||||
SB Financial Group, Inc. | 811 | 14,022 | ||||||
Select Bancorp, Inc.* | 1,522 | 16,651 | ||||||
Shore Bancshares, Inc. | 1,041 | 15,927 | ||||||
Sierra Bancorp | 611 | 14,572 | ||||||
SmartFinancial, Inc. | 754 | 15,834 | ||||||
South Plains Financial, Inc. | 740 | 14,282 | ||||||
Southern National Bancorp of Virginia, Inc. | 1,192 | 16,926 | ||||||
Spirit of Texas Bancshares, Inc. | 820 | 17,023 | ||||||
Summit Financial Group, Inc. | 679 | 16,357 | ||||||
Towne Bank | 579 | 16,698 | ||||||
United Community Banks, Inc. | 464 | 15,340 | ||||||
United Security Bancshares | 1,971 | 14,704 | ||||||
Unity Bancorp, Inc. | 755 | 14,987 | ||||||
Valley National Bancorp | 1,338 | 16,390 | ||||||
WesBanco, Inc. | 504 | 16,269 | ||||||
West BanCorp, Inc. | 696 | 15,890 | ||||||
|
| |||||||
2,460,096 | ||||||||
Beverages 0.3% | ||||||||
MGP Ingredients, Inc. | 268 | 17,120 | ||||||
Primo Water Corp. | 923 | 13,189 | ||||||
|
| |||||||
30,309 | ||||||||
Biotechnology 3.2% | ||||||||
Abeona Therapeutics, Inc.* | 6,278 | 15,193 | ||||||
Adverum Biotechnologies, Inc.* | 1,062 | 13,625 | ||||||
Albireo Pharma, Inc.* | 402 | 14,014 | ||||||
Anika Therapeutics, Inc.* | 378 | 13,873 | ||||||
Annexon, Inc.* | 573 | 16,680 | ||||||
Assembly Biosciences, Inc.* | 2,418 | 12,283 | ||||||
Catalyst Biosciences, Inc.* | 2,141 | 12,910 | ||||||
Concert Pharmaceuticals, Inc.* | 1,314 | 8,791 | ||||||
Cyclerion Therapeutics, Inc.* | 4,406 | 16,919 | ||||||
GlycoMimetics, Inc.* | 3,568 | 11,846 | ||||||
Gossamer Bio, Inc.* | 1,377 | 12,944 |
See Notes to Financial Statements.
62 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Biotechnology (cont'd.) | ||||||||
Ideaya Biosciences, Inc.* | 844 | $ | 16,095 | |||||
iTeos Therapeutics, Inc.* | 462 | 19,210 | ||||||
IVERIC bio, Inc.* | 2,557 | 15,700 | ||||||
Kezar Life Sciences, Inc.* | 2,553 | 13,990 | ||||||
Myriad Genetics, Inc.* | 551 | 16,800 | ||||||
Natera, Inc.* | 123 | 14,279 | ||||||
OPKO Health, Inc.* | 2,914 | 13,113 | ||||||
Orgenesis, Inc.* | 2,062 | 13,795 | ||||||
TCR2 Therapeutics, Inc.* | 512 | 13,547 | ||||||
Vanda Pharmaceuticals, Inc.* | 1,103 | 20,571 | ||||||
Verastem, Inc.* | 6,836 | 16,065 | ||||||
Vericel Corp.* | 335 | 16,174 | ||||||
X4 Pharmaceuticals, Inc.* | 1,588 | 15,197 | ||||||
XBiotech, Inc.(a)* | 814 | 15,466 | ||||||
Xencor, Inc.* | 301 | 14,830 | ||||||
|
| |||||||
383,910 | ||||||||
Building Products 1.0% | ||||||||
American Woodmark Corp.* | 154 | 14,385 | ||||||
Apogee Enterprises, Inc. | 389 | 14,549 | ||||||
Caesarstone Ltd. (Israel) | 1,058 | 13,341 | ||||||
Insteel Industries, Inc. | 537 | 16,582 | ||||||
JELD-WEN Holding, Inc.* | 506 | 15,003 | ||||||
Quanex Building Products Corp. | 551 | 13,406 | ||||||
Resideo Technologies, Inc.* | 581 | 13,956 | ||||||
UFP Industries, Inc.(a) | 251 | 15,311 | ||||||
|
| |||||||
116,533 | ||||||||
Capital Markets 2.3% | ||||||||
AssetMark Financial Holdings, Inc.* | 596 | 14,083 | ||||||
Associated Capital Group, Inc. (Class A Stock) | 418 | 14,254 | ||||||
B. Riley Financial, Inc. | 291 | 19,154 | ||||||
BGC Partners, Inc. (Class A Stock) | 3,790 | 16,979 | ||||||
Blucora, Inc.* | 846 | 13,705 | ||||||
Cowen, Inc. (Class A Stock) | 549 | 18,584 | ||||||
Diamond Hill Investment Group, Inc. | 96 | 13,618 | ||||||
Donnelley Financial Solutions, Inc.* | 770 | 20,012 | ||||||
Federated Hermes, Inc. (Class B Stock) | 493 | 13,173 | ||||||
Oppenheimer Holdings, Inc. (Class A Stock) | 489 | 18,533 | ||||||
Piper Sandler Cos. | 143 | 15,204 | ||||||
Sculptor Capital Management, Inc. (Class A Stock) | 816 | 16,842 | ||||||
Silvercrest Asset Management Group, Inc. (Class A Stock) | 952 | 13,366 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Capital Markets (cont'd.) | ||||||||
StepStone Group, Inc. (Class A Stock)* | 402 | $ | 14,476 | |||||
Virtus Investment Partners, Inc. | 68 | 17,061 | ||||||
Westwood Holdings Group, Inc. | 1,168 | 20,148 | ||||||
WisdomTree Investments, Inc. | 2,951 | 15,640 | ||||||
|
| |||||||
274,832 | ||||||||
Chemicals 2.1% | ||||||||
Advanced Emissions Solutions, Inc.* | 2,689 | 15,327 | ||||||
AdvanSix, Inc.* | 629 | 17,486 | ||||||
AgroFresh Solutions, Inc.* | 7,171 | 17,139 | ||||||
Avient Corp. | 385 | 16,640 | ||||||
Balchem Corp. | 124 | 14,801 | ||||||
Ferro Corp.* | 972 | 15,426 | ||||||
Hawkins, Inc. | 277 | 17,340 | ||||||
HB Fuller Co. | 288 | 16,148 | ||||||
Innospec, Inc. | 161 | 16,172 | ||||||
Koppers Holdings, Inc.* | 421 | 14,066 | ||||||
Kronos Worldwide, Inc. | 972 | 14,045 | ||||||
Minerals Technologies, Inc. | 217 | 15,457 | ||||||
Sensient Technologies Corp. | 194 | 15,103 | ||||||
Stepan Co. | 120 | 14,483 | ||||||
Trecora Resources* | 2,072 | 14,711 | ||||||
Tredegar Corp. | 933 | 14,219 | ||||||
|
| |||||||
248,563 | ||||||||
Commercial Services & Supplies 2.1% | ||||||||
ABM Industries, Inc. | 370 | 15,977 | ||||||
ACCO Brands Corp. | 1,689 | 13,681 | ||||||
Brady Corp. (Class A Stock) | 297 | 15,566 | ||||||
BrightView Holdings, Inc.* | 887 | 14,112 | ||||||
CECO Environmental Corp.* | 1,942 | 15,924 | ||||||
Deluxe Corp. | 416 | 16,445 | ||||||
Ennis, Inc. | 771 | 15,281 | ||||||
Herman Miller, Inc. | 414 | 15,879 | ||||||
HNI Corp. | 434 | 15,446 | ||||||
KAR Auction Services, Inc. | 800 | 11,128 | ||||||
Kimball International, Inc. (Class B Stock) | 1,165 | 15,075 | ||||||
Knoll, Inc. | 908 | 14,809 | ||||||
Matthews International Corp. (Class A Stock) | 459 | 16,386 | ||||||
PICO Holdings, Inc.* | 1,561 | 14,268 | ||||||
Steelcase, Inc. (Class A Stock) | 1,039 | 14,484 | ||||||
UniFirst Corp. | 67 | 16,233 |
See Notes to Financial Statements.
64 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Commercial Services & Supplies (cont'd.) | ||||||||
VSE Corp. | 323 | $ | 12,455 | |||||
|
| |||||||
253,149 | ||||||||
Communications Equipment 0.7% | ||||||||
ADTRAN, Inc. | 835 | 14,061 | ||||||
CalAmp Corp.* | 1,350 | 15,079 | ||||||
DZS, Inc.* | 914 | 15,209 | ||||||
NETGEAR, Inc.* | 342 | 13,680 | ||||||
NetScout Systems, Inc.* | 472 | 13,320 | ||||||
Ribbon Communications, Inc.* | 2,034 | 17,574 | ||||||
|
| |||||||
88,923 | ||||||||
Construction & Engineering 1.7% | ||||||||
Aegion Corp. (Class A Stock)* | 719 | 18,586 | ||||||
API Group Corp., 144A* | 721 | 13,339 | ||||||
Arcosa, Inc. | 247 | 14,012 | ||||||
Argan, Inc.(a) | 333 | 16,657 | ||||||
Comfort Systems USA, Inc. | 253 | 15,671 | ||||||
EMCOR Group, Inc. | 149 | 14,508 | ||||||
Great Lakes Dredge & Dock Corp.* | 1,072 | 16,284 | ||||||
IES Holdings, Inc.* | 329 | 15,081 | ||||||
MasTec, Inc.* | 183 | 15,875 | ||||||
MYR Group, Inc.* | 224 | 13,205 | ||||||
Northwest Pipe Co.* | 475 | 16,164 | ||||||
Primoris Services Corp. | 477 | 15,965 | ||||||
Tutor Perini Corp.* | 878 | 12,907 | ||||||
|
| |||||||
198,254 | ||||||||
Construction Materials 0.1% | ||||||||
US Concrete, Inc.* | 311 | 16,004 | ||||||
Consumer Finance 0.8% | ||||||||
Encore Capital Group, Inc.* | 485 | 16,209 | ||||||
Enova International, Inc.* | 669 | 20,538 | ||||||
Navient Corp. | 1,247 | 15,438 | ||||||
Nelnet, Inc. (Class A Stock) | 213 | 15,464 | ||||||
Regional Management Corp. | 507 | 16,411 | ||||||
World Acceptance Corp.* | 132 | 16,705 | ||||||
|
| |||||||
100,765 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Containers & Packaging 0.5% | ||||||||
Greif, Inc., | ||||||||
(Class A Stock) | 307 | $ | 14,828 | |||||
(Class B Stock) | 295 | 14,602 | ||||||
Myers Industries, Inc. | 698 | 15,454 | ||||||
UFP Technologies, Inc.* | 311 | 15,401 | ||||||
|
| |||||||
60,285 | ||||||||
Distributors 0.2% | ||||||||
Core-Mark Holding Co., Inc. | 435 | 14,172 | ||||||
Weyco Group, Inc. | 848 | 14,883 | ||||||
|
| |||||||
29,055 | ||||||||
Diversified Consumer Services 0.6% | ||||||||
Adtalem Global Education, Inc.* | 408 | 16,034 | ||||||
American Public Education, Inc.* | 492 | 14,485 | ||||||
Carriage Services, Inc. (Class A Stock) | 414 | 13,645 | ||||||
Stride, Inc.* | 577 | 13,877 | ||||||
WW International, Inc.* | 553 | 16,308 | ||||||
|
| |||||||
74,349 | ||||||||
Diversified Financial Services 0.6% | ||||||||
Alerus Financial Corp. | 524 | 14,415 | ||||||
A-Mark Precious Metals, Inc. | 524 | 14,902 | ||||||
Banco Latinoamericano de Comercio Exterior SA (Panama) (Class E Stock) | 887 | 13,536 | ||||||
Cannae Holdings, Inc.* | 348 | 12,998 | ||||||
Marlin Business Services Corp. | 1,140 | 17,328 | ||||||
|
| |||||||
73,179 | ||||||||
Diversified Telecommunication Services 0.7% | ||||||||
ATN International, Inc. | 305 | 14,847 | ||||||
Consolidated Communications Holdings, Inc.* | 2,614 | 13,750 | ||||||
IDT Corp. (Class B Stock)* | 1,015 | 18,219 | ||||||
Liberty Latin America Ltd., | ||||||||
(Class A Stock)* | 1,235 | 13,548 | ||||||
(Class C Stock)* | 1,242 | 13,612 | ||||||
Vonage Holdings Corp.* | 1,027 | 13,577 | ||||||
|
| |||||||
87,553 | ||||||||
Electric Utilities 0.4% | ||||||||
MGE Energy, Inc. | 219 | 13,950 | ||||||
Otter Tail Corp. | 349 | 14,142 |
See Notes to Financial Statements.
66 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Electric Utilities (cont'd.) | ||||||||
Portland General Electric Co. | 346 | $ | 14,587 | |||||
|
| |||||||
42,679 | ||||||||
Electrical Equipment 1.0% | ||||||||
AZZ, Inc. | 294 | 15,020 | ||||||
Encore Wire Corp. | 245 | 16,055 | ||||||
EnerSys | 156 | 14,084 | ||||||
LSI Industries, Inc. | 1,457 | 13,142 | ||||||
Powell Industries, Inc. | 479 | 14,911 | ||||||
Preformed Line Products Co. | 218 | 15,993 | ||||||
Thermon Group Holdings, Inc.* | 926 | 18,918 | ||||||
Ultralife Corp.* | 2,186 | 14,887 | ||||||
|
| |||||||
123,010 | ||||||||
Electronic Equipment, Instruments & Components 2.4% | ||||||||
Bel Fuse, Inc. (Class B Stock) | 873 | 15,496 | ||||||
Belden, Inc. | 313 | 13,838 | ||||||
Benchmark Electronics, Inc. | 542 | 15,393 | ||||||
CTS Corp.(a) | 465 | 14,959 | ||||||
Daktronics, Inc. | 2,510 | 13,579 | ||||||
ePlus, Inc.* | 152 | 14,373 | ||||||
FARO Technologies, Inc.* | 190 | 17,757 | ||||||
Insight Enterprises, Inc.* | 183 | 15,297 | ||||||
Kimball Electronics, Inc.* | 720 | 16,906 | ||||||
Knowles Corp.* | 674 | 14,012 | ||||||
Methode Electronics, Inc. | 364 | 14,170 | ||||||
PC Connection, Inc. | 275 | 12,653 | ||||||
Plexus Corp.* | 183 | 15,368 | ||||||
Rogers Corp.* | 87 | 15,789 | ||||||
Sanmina Corp.* | 400 | 14,248 | ||||||
ScanSource, Inc.* | 515 | 14,647 | ||||||
TTM Technologies, Inc.* | 934 | 13,188 | ||||||
Vishay Intertechnology, Inc.(a) | 643 | 15,348 | ||||||
Vishay Precision Group, Inc.* | 412 | 13,316 | ||||||
|
| |||||||
280,337 | ||||||||
Energy Equipment & Services 1.8% | ||||||||
Bristow Group, Inc.* | 550 | 14,641 | ||||||
ChampionX Corp.* | 908 | 19,313 | ||||||
DMC Global, Inc. | 292 | 18,393 | ||||||
Exterran Corp.* | 3,112 | 17,023 | ||||||
Helix Energy Solutions Group, Inc.* | 3,370 | 16,513 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Energy Equipment & Services (cont'd.) | ||||||||
Nabors Industries Ltd.(a) | 248 | $ | 27,530 | |||||
National Energy Services Reunited Corp.* | 1,482 | 19,637 | ||||||
Newpark Resources, Inc.* | 5,737 | 19,850 | ||||||
Oil States International, Inc.* | 2,414 | 17,695 | ||||||
Solaris Oilfield Infrastructure, Inc. (Class A Stock) | 1,489 | 17,585 | ||||||
US Silica Holdings, Inc. | 1,598 | 21,269 | ||||||
|
| |||||||
209,449 | ||||||||
Equity Real Estate Investment Trusts (REITs) 6.0% | ||||||||
Acadia Realty Trust | 977 | 18,475 | ||||||
Alexander & Baldwin, Inc. | 919 | 16,055 | ||||||
Alpine Income Property Trust, Inc. | 903 | 16,543 | ||||||
American Assets Trust, Inc. | 511 | 15,882 | ||||||
Armada Hoffler Properties, Inc. | 1,284 | 16,576 | ||||||
Broadstone Net Lease, Inc. (Class A Stock) | 780 | 14,110 | ||||||
CatchMark Timber Trust, Inc. (Class A Stock) | 1,516 | 15,478 | ||||||
Centerspace | 202 | 13,863 | ||||||
Chatham Lodging Trust* | 1,336 | 18,610 | ||||||
City Office REIT, Inc. (Canada) | 1,508 | 15,321 | ||||||
Colony Capital, Inc. | 3,079 | 18,228 | ||||||
Columbia Property Trust, Inc. | 1,043 | 14,727 | ||||||
CorePoint Lodging, Inc. | 1,902 | 17,327 | ||||||
CTO Realty Growth, Inc. | 310 | 16,043 | ||||||
DiamondRock Hospitality Co.* | 1,679 | 16,991 | ||||||
Farmland Partners, Inc. | 1,228 | 14,687 | ||||||
Franklin Street Properties Corp. | 3,146 | 15,604 | ||||||
GEO Group, Inc. (The)(a) | 1,819 | 13,097 | ||||||
Getty Realty Corp. | 535 | 14,969 | ||||||
Gladstone Commercial Corp. | 800 | 14,944 | ||||||
Gladstone Land Corp. | 864 | 15,457 | ||||||
Global Net Lease, Inc. | 867 | 16,109 | ||||||
Hersha Hospitality Trust (Class A Stock)* | 1,710 | 19,015 | ||||||
Lexington Realty Trust | 1,398 | 14,987 | ||||||
Monmouth Real Estate Investment Corp. | 834 | 14,445 | ||||||
National Health Investors, Inc. | 219 | 14,951 | ||||||
NexPoint Residential Trust, Inc. | 342 | 14,036 | ||||||
Office Properties Income Trust | 592 | 14,972 | ||||||
One Liberty Properties, Inc. | 721 | 15,437 | ||||||
Pebblebrook Hotel Trust | 723 | 16,383 | ||||||
Piedmont Office Realty Trust, Inc. (Class A Stock) | 894 | 15,252 | ||||||
PotlatchDeltic Corp. | 265 | 13,449 | ||||||
Preferred Apartment Communities, Inc. (Class A Stock) | 1,802 | 14,830 |
See Notes to Financial Statements.
68 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) (cont'd.) | ||||||||
Retail Opportunity Investments Corp. | 1,006 | $ | 15,905 | |||||
Retail Value, Inc. | 923 | 15,414 | ||||||
RLJ Lodging Trust | 1,148 | 18,024 | ||||||
RPT Realty | 1,531 | 16,795 | ||||||
Sabra Health Care REIT, Inc. | 841 | 14,482 | ||||||
Service Properties Trust | 1,359 | 17,450 | ||||||
Summit Hotel Properties, Inc.* | 1,689 | 17,481 | ||||||
UMH Properties, Inc. | 949 | 16,199 | ||||||
Universal Health Realty Income Trust | 226 | 14,001 | ||||||
Urstadt Biddle Properties, Inc. (Class A Stock) | 1,116 | 17,990 | ||||||
Whitestone REIT (Class B Stock) | 1,662 | 15,540 | ||||||
Xenia Hotels & Resorts, Inc. | 956 | 19,091 | ||||||
|
| |||||||
715,225 | ||||||||
Food & Staples Retailing 0.9% | ||||||||
Andersons, Inc. (The) | 581 | 15,187 | ||||||
Ingles Markets, Inc. (Class A Stock)(a) | 331 | 17,199 | ||||||
Natural Grocers by Vitamin Cottage, Inc. | 888 | 12,503 | ||||||
PriceSmart, Inc. | 152 | 14,660 | ||||||
SpartanNash Co. | 783 | 14,274 | ||||||
Village Super Market, Inc. (Class A Stock) | 674 | 15,536 | ||||||
Weis Markets, Inc.(a) | 307 | 16,409 | ||||||
|
| |||||||
105,768 | ||||||||
Food Products 0.3% | ||||||||
Fresh Del Monte Produce, Inc. | 605 | 15,573 | ||||||
Seneca Foods Corp. (Class A Stock)* | 371 | 20,204 | ||||||
|
| |||||||
35,777 | ||||||||
Gas Utilities 0.8% | ||||||||
Brookfield Infrastructure Corp. (Canada) (Class A Stock) | 219 | 14,502 | ||||||
ONE Gas, Inc. | 202 | 13,528 | ||||||
RGC Resources, Inc. | 616 | 13,989 | ||||||
South Jersey Industries, Inc. | 645 | 16,196 | ||||||
Southwest Gas Holdings, Inc. | 242 | 15,089 | ||||||
Spire, Inc. | 238 | 15,808 | ||||||
|
| |||||||
89,112 | ||||||||
Health Care Equipment & Supplies 2.0% | ||||||||
AngioDynamics, Inc.* | 788 | 16,509 | ||||||
Avanos Medical, Inc.* | 306 | 14,070 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Health Care Equipment & Supplies (cont'd.) | ||||||||
FONAR Corp.* | 801 | $ | 15,531 | |||||
Inari Medical, Inc.* | 135 | 14,121 | ||||||
Integer Holdings Corp.* | 175 | 15,433 | ||||||
IntriCon Corp.* | 723 | 16,600 | ||||||
Invacare Corp. | 1,474 | 13,413 | ||||||
LeMaitre Vascular, Inc. | 313 | 16,085 | ||||||
Meridian Bioscience, Inc.* | 619 | 13,048 | ||||||
Misonix, Inc.* | 1,052 | 17,632 | ||||||
Natus Medical, Inc.* | 537 | 13,914 | ||||||
OraSure Technologies, Inc.* | 968 | 10,261 | ||||||
Orthofix Medical, Inc.* | 326 | 15,162 | ||||||
SeaSpine Holdings Corp.* | 839 | 15,874 | ||||||
Surgalign Holdings, Inc.* | 6,933 | 16,917 | ||||||
Utah Medical Products, Inc. | 170 | 14,348 | ||||||
|
| |||||||
238,918 | ||||||||
Health Care Providers & Services 1.4% | ||||||||
Covetrus, Inc.* | 422 | 15,682 | ||||||
Enzo Biochem, Inc.* | 4,749 | 13,867 | ||||||
Five Star Senior Living, Inc.* | 1,990 | 13,293 | ||||||
Hanger, Inc.* | 638 | 14,023 | ||||||
MEDNAX, Inc.* | 608 | 14,853 | ||||||
National HealthCare Corp. | 203 | 14,119 | ||||||
Option Care Health, Inc.* | 744 | 14,277 | ||||||
Owens & Minor, Inc. | 474 | 16,121 | ||||||
Patterson Cos., Inc. | 445 | 13,822 | ||||||
Tivity Health, Inc.* | 664 | 15,803 | ||||||
Triple-S Management Corp. (Puerto Rico) (Class B Stock)* | 602 | 15,231 | ||||||
|
| |||||||
161,091 | ||||||||
Health Care Technology 0.5% | ||||||||
Computer Programs & Systems, Inc. | 480 | 15,096 | ||||||
Evolent Health, Inc. (Class A Stock)* | 756 | 15,234 | ||||||
HealthStream, Inc.* | 577 | 13,444 | ||||||
NextGen Healthcare, Inc.* | 629 | 11,762 | ||||||
|
| |||||||
55,536 | ||||||||
Hotels, Restaurants & Leisure 1.0% | ||||||||
Biglari Holdings, Inc. (Class B Stock)* | 129 | 15,111 | ||||||
Carrols Restaurant Group, Inc.* | 2,193 | 13,553 | ||||||
Del Taco Restaurants, Inc. | 1,457 | 14,628 | ||||||
El Pollo Loco Holdings, Inc.* | 741 | 13,583 |
See Notes to Financial Statements.
70 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Hotels, Restaurants & Leisure (cont'd.) | ||||||||
Jack in the Box, Inc. | 145 | $ | 14,841 | |||||
Monarch Casino & Resort, Inc.* | 250 | 16,915 | ||||||
Nathan’s Famous, Inc. | 259 | 15,478 | ||||||
Papa John’s International, Inc. | 150 | 13,528 | ||||||
|
| |||||||
117,637 | ||||||||
Household Durables 2.0% | ||||||||
Beazer Homes USA, Inc.* | 761 | 13,447 | ||||||
Century Communities, Inc.* | 286 | 15,824 | ||||||
Ethan Allen Interiors, Inc. | 608 | 15,577 | ||||||
GoPro, Inc. (Class A Stock)(a)* | 1,651 | 12,416 | ||||||
Green Brick Partners, Inc.* | 632 | 12,469 | ||||||
Hooker Furniture Corp. | 447 | 15,113 | ||||||
La-Z-Boy, Inc. | 333 | 14,189 | ||||||
Legacy Housing Corp.* | 960 | 15,082 | ||||||
Lifetime Brands, Inc. | 906 | 11,751 | ||||||
M/I Homes, Inc.* | 269 | 13,423 | ||||||
MDC Holdings, Inc. | 264 | 14,935 | ||||||
Meritage Homes Corp.* | 153 | 12,900 | ||||||
Taylor Morrison Home Corp. (Class A Stock)* | 483 | 13,287 | ||||||
Tri Pointe Homes, Inc.* | 688 | 13,072 | ||||||
Turtle Beach Corp.(a)* | 581 | 17,372 | ||||||
Universal Electronics, Inc.* | 244 | 14,198 | ||||||
VOXX International Corp. (Class A Stock)* | 691 | 14,324 | ||||||
|
| |||||||
239,379 | ||||||||
Household Products 0.3% | ||||||||
Oil-Dri Corp. of America | 431 | 14,473 | ||||||
WD-40 Co. | 49 | 15,276 | ||||||
|
| |||||||
29,749 | ||||||||
Industrial Conglomerates 0.1% | ||||||||
Raven Industries, Inc. | 396 | 15,523 | ||||||
Insurance 2.8% | ||||||||
Argo Group International Holdings Ltd. (Bermuda) | 327 | 15,111 | ||||||
CNO Financial Group, Inc.(a) | 658 | 15,831 | ||||||
Crawford & Co. (Class A Stock) | 1,844 | 17,334 | ||||||
Donegal Group, Inc. (Class A Stock) | 1,033 | 14,152 | ||||||
Employers Holdings, Inc. | 447 | 14,881 | ||||||
Enstar Group Ltd. (Bermuda)* | 67 | 14,243 | ||||||
Heritage Insurance Holdings, Inc. | 1,423 | 13,817 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Insurance (cont'd.) | ||||||||
Horace Mann Educators Corp. | 344 | $ | 13,258 | |||||
Independence Holding Co. | 364 | 13,836 | ||||||
Investors Title Co. | 101 | 15,329 | ||||||
National Western Life Group, Inc. (Class A Stock) | 73 | 15,245 | ||||||
NI Holdings, Inc.* | 871 | 15,530 | ||||||
ProAssurance Corp.(a) | 702 | 17,374 | ||||||
Protective Insurance Corp. (Class B Stock) | 1,006 | 23,047 | ||||||
Safety Insurance Group, Inc. | 189 | 14,946 | ||||||
Selective Insurance Group, Inc. | 206 | 13,973 | ||||||
State Auto Financial Corp. | 739 | 13,849 | ||||||
Stewart Information Services Corp. | 294 | 13,877 | ||||||
Third Point Reinsurance Ltd. (Bermuda)* | 1,476 | 15,070 | ||||||
Tiptree, Inc. | 2,925 | 14,654 | ||||||
United Insurance Holdings Corp. | 2,496 | 15,525 | ||||||
Watford Holdings Ltd. (Bermuda)* | 422 | 14,614 | ||||||
|
| |||||||
335,496 | ||||||||
Interactive Media & Services 0.5% | ||||||||
Cars.com, Inc.* | 1,067 | 12,452 | ||||||
DHI Group, Inc.* | 5,562 | 17,298 | ||||||
QuinStreet, Inc.* | 653 | 15,600 | ||||||
Yelp, Inc. (Class A Stock)* | 459 | 17,309 | ||||||
|
| |||||||
62,659 | ||||||||
Internet & Direct Marketing Retail 0.6% | ||||||||
Duluth Holdings, Inc. (Class B Stock)* | 1,151 | 16,091 | ||||||
Groupon, Inc. (Class A Stock)* | 432 | 18,749 | ||||||
Lands’ End, Inc.* | 476 | 15,727 | ||||||
Overstock.com, Inc.* | 217 | 14,576 | ||||||
|
| |||||||
65,143 | ||||||||
IT Services 0.9% | ||||||||
BM Technologies, Inc.* | 142 | 1,637 | ||||||
Conduent, Inc.* | 2,786 | 14,989 | ||||||
IBEX Holdings Ltd.* | 730 | 16,067 | ||||||
Information Services Group, Inc.* | 4,086 | 14,873 | ||||||
ServiceSource International, Inc.* | 8,038 | 12,901 | ||||||
StarTek, Inc.* | 1,831 | 14,849 | ||||||
Sykes Enterprises, Inc.* | 358 | 14,628 | ||||||
Unisys Corp.* | 611 | 15,000 | ||||||
|
| |||||||
104,944 |
See Notes to Financial Statements.
72 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Leisure Products 0.8% | ||||||||
Acushnet Holdings Corp. | 354 | $ | 14,946 | |||||
American Outdoor Brands, Inc.* | 742 | 14,847 | ||||||
Escalade, Inc. | 684 | 13,516 | ||||||
Johnson Outdoors, Inc. (Class A Stock) | 128 | 15,447 | ||||||
Nautilus, Inc.* | 637 | 11,727 | ||||||
Smith & Wesson Brands, Inc. | 825 | 14,198 | ||||||
Sturm Ruger & Co., Inc. | 218 | 14,868 | ||||||
|
| |||||||
99,549 | ||||||||
Life Sciences Tools & Services 0.1% | ||||||||
Harvard Bioscience, Inc.* | 3,207 | 14,079 | ||||||
Machinery 3.6% | ||||||||
Alamo Group, Inc. | 96 | 14,652 | ||||||
Altra Industrial Motion Corp. | 274 | 15,870 | ||||||
Astec Industries, Inc.(a) | 224 | 15,214 | ||||||
CIRCOR International, Inc.* | 372 | 13,247 | ||||||
Columbus McKinnon Corp. | 349 | 17,569 | ||||||
Eastern Co. (The) | 594 | 15,147 | ||||||
EnPro Industries, Inc. | 178 | 14,300 | ||||||
Federal Signal Corp. | 414 | 15,074 | ||||||
Franklin Electric Co., Inc. | 201 | 15,087 | ||||||
Gencor Industries, Inc.* | 1,179 | 16,742 | ||||||
Gorman-Rupp Co. (The) | 449 | 14,363 | ||||||
Graham Corp. | 878 | 13,469 | ||||||
Helios Technologies, Inc. | 267 | 17,462 | ||||||
Hillenbrand, Inc. | 365 | 16,958 | ||||||
Hurco Cos., Inc. | 467 | 14,678 | ||||||
LB Foster Co. (Class A Stock)* | 951 | 16,119 | ||||||
Luxfer Holdings PLC (United Kingdom) | 804 | 15,405 | ||||||
Miller Industries, Inc. | 351 | 13,854 | ||||||
Mueller Industries, Inc. | 374 | 15,199 | ||||||
Mueller Water Products, Inc. (Class A Stock) | 1,189 | 15,326 | ||||||
Park-Ohio Holdings Corp. | 493 | 15,939 | ||||||
REV Group, Inc. | 1,306 | 16,221 | ||||||
Rexnord Corp. | 347 | 15,598 | ||||||
SPX Corp.* | 246 | 13,675 | ||||||
Standex International Corp. | 174 | 17,062 | ||||||
TriMas Corp.* | 420 | 14,108 | ||||||
Wabash National Corp. | 877 | 14,541 | ||||||
Watts Water Technologies, Inc. (Class A Stock) | 115 | 13,120 | ||||||
|
| |||||||
425,999 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Marine 0.7% | ||||||||
Costamare, Inc. (Monaco) | 1,790 | $ | 17,274 | |||||
Eagle Bulk Shipping, Inc.* | 686 | 20,127 | ||||||
Genco Shipping & Trading Ltd. | 1,747 | 18,344 | ||||||
Matson, Inc. | 218 | 15,101 | ||||||
SEACOR Holdings, Inc.* | 344 | 14,623 | ||||||
|
| |||||||
85,469 | ||||||||
Media 2.1% | ||||||||
AMC Networks, Inc. (Class A Stock)(a)* | 269 | 17,644 | ||||||
Boston Omaha Corp. (Class A Stock)* | 509 | 21,368 | ||||||
Daily Journal Corp.* | 44 | 15,061 | ||||||
Entercom Communications Corp. (Class A Stock) | 3,450 | 15,422 | ||||||
Entravision Communications Corp. (Class A Stock) | 4,659 | 14,583 | ||||||
EW Scripps Co. (The) (Class A Stock) | 965 | 18,161 | ||||||
Fluent, Inc.* | 2,765 | 17,502 | ||||||
Gray Television, Inc.* | 835 | 15,155 | ||||||
Hemisphere Media Group, Inc. (Class A Stock)* | 1,468 | 16,221 | ||||||
Meredith Corp.* | 704 | 17,445 | ||||||
Saga Communications, Inc. (Class A Stock) | 673 | 13,918 | ||||||
Scholastic Corp. | 494 | 14,227 | ||||||
TEGNA, Inc. | 891 | 16,243 | ||||||
Tribune Publishing Co.* | 875 | 14,858 | ||||||
WideOpenWest, Inc.* | 1,301 | 18,279 | ||||||
|
| |||||||
246,087 | ||||||||
Metals & Mining 1.1% | ||||||||
Alcoa Corp.* | 756 | 18,560 | ||||||
Caledonia Mining Corp. PLC (South Africa) | 975 | 13,806 | ||||||
Gold Resource Corp. | 5,458 | 14,682 | ||||||
Materion Corp. | 218 | 14,929 | ||||||
Olympic Steel, Inc. | 886 | 15,806 | ||||||
Schnitzer Steel Industries, Inc. (Class A Stock) | 516 | 17,823 | ||||||
SunCoke Energy, Inc. | 2,669 | 17,055 | ||||||
Worthington Industries, Inc. | 270 | 17,250 | ||||||
|
| |||||||
129,911 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) 3.0% | ||||||||
Anworth Mortgage Asset Corp. | 5,914 | 16,382 | ||||||
Apollo Commercial Real Estate Finance, Inc. | 1,229 | 16,333 | ||||||
Arbor Realty Trust, Inc. | 1,018 | 16,970 | ||||||
Ares Commercial Real Estate Corp. | 1,236 | 17,069 | ||||||
Arlington Asset Investment Corp. (Class A Stock)* | 3,636 | 14,580 |
See Notes to Financial Statements.
74 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Mortgage Real Estate Investment Trusts (REITs) (cont'd.) | ||||||||
Broadmark Realty Capital, Inc. | 1,378 | $ | 14,138 | |||||
Capstead Mortgage Corp. | 2,509 | 14,377 | ||||||
Cherry Hill Mortgage Investment Corp. | 1,576 | 15,476 | ||||||
Chimera Investment Corp. | 1,380 | 15,925 | ||||||
Colony Credit Real Estate, Inc. | 1,741 | 14,363 | ||||||
Dynex Capital, Inc. | 791 | 14,887 | ||||||
Ellington Financial, Inc. | 849 | 13,346 | ||||||
Granite Point Mortgage Trust, Inc. | 1,500 | 16,740 | ||||||
Great Ajax Corp. | 1,388 | 15,615 | ||||||
KKR Real Estate Finance Trust, Inc. | 818 | 15,076 | ||||||
MFA Financial, Inc. | 3,702 | 14,882 | ||||||
Orchid Island Capital, Inc. (Class A Stock) | 2,684 | 15,379 | ||||||
PennyMac Mortgage Investment Trust | 812 | 15,404 | ||||||
Ready Capital Corp. | 1,190 | 15,613 | ||||||
Redwood Trust, Inc. | 1,613 | 15,872 | ||||||
TPG RE Finance Trust, Inc. | 1,342 | 14,011 | ||||||
Two Harbors Investment Corp. | 2,268 | 16,375 | ||||||
Western Asset Mortgage Capital Corp. | 4,844 | 15,792 | ||||||
|
| |||||||
354,605 | ||||||||
Multiline Retail 0.2% | ||||||||
Big Lots, Inc.(a) | 286 | 18,172 | ||||||
Multi-Utilities 0.2% | ||||||||
Black Hills Corp. | 240 | 14,199 | ||||||
NorthWestern Corp. | 261 | 15,263 | ||||||
|
| |||||||
29,462 | ||||||||
Oil, Gas & Consumable Fuels 2.0% | ||||||||
Adams Resources & Energy, Inc. | 571 | 16,616 | ||||||
Antero Resources Corp.* | 2,132 | 19,188 | ||||||
Ardmore Shipping Corp. (Ireland)* | 4,460 | 17,572 | ||||||
Bonanza Creek Energy, Inc.* | 684 | 21,840 | ||||||
Brigham Minerals, Inc. (Class A Stock) | 1,052 | 15,054 | ||||||
Comstock Resources, Inc.* | 3,054 | 17,438 | ||||||
Diamond S Shipping, Inc.* | 2,190 | 17,739 | ||||||
Dorian LPG Ltd.* | 1,279 | 15,924 | ||||||
International Seaways, Inc. | 853 | 14,791 | ||||||
Nordic American Tankers Ltd. (Norway)(a) | 5,097 | 15,138 | ||||||
Overseas Shipholding Group, Inc. (Class A Stock)* | 6,868 | 15,110 | ||||||
Scorpio Tankers, Inc. (Monaco) | 1,200 | 17,712 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Oil, Gas & Consumable Fuels (cont'd.) | ||||||||
SFL Corp. Ltd. (Norway) | 2,199 | $ | 16,580 | |||||
World Fuel Services Corp. | 469 | 14,577 | ||||||
|
| |||||||
235,279 | ||||||||
Paper & Forest Products 0.6% | ||||||||
Clearwater Paper Corp.* | 354 | 12,394 | ||||||
Domtar Corp. | 458 | 16,969 | ||||||
Neenah, Inc. | 264 | 14,604 | ||||||
Schweitzer-Mauduit International, Inc. | 357 | 16,672 | ||||||
Verso Corp. (Class A Stock) | 1,265 | 15,812 | ||||||
|
| |||||||
76,451 | ||||||||
Personal Products 0.3% | ||||||||
BellRing Brands, Inc. (Class A Stock)* | 598 | 13,587 | ||||||
Edgewell Personal Care Co. | 412 | 12,603 | ||||||
Nature’s Sunshine Products, Inc.* | 928 | 15,293 | ||||||
|
| |||||||
41,483 | ||||||||
Pharmaceuticals 0.7% | ||||||||
ANI Pharmaceuticals, Inc.* | 455 | 13,240 | ||||||
Cymabay Therapeutics, Inc.* | 2,522 | 12,106 | ||||||
Lannett Co., Inc.* | 1,747 | 10,587 | ||||||
Pliant Therapeutics, Inc.* | 537 | 17,769 | ||||||
Prestige Consumer Healthcare, Inc.* | 373 | 15,558 | ||||||
Supernus Pharmaceuticals, Inc.* | 495 | 13,301 | ||||||
|
| |||||||
82,561 | ||||||||
Professional Services 1.9% | ||||||||
ASGN, Inc.* | 153 | 14,224 | ||||||
Barrett Business Services, Inc. | 218 | 15,522 | ||||||
BGSF, Inc. | 1,177 | 16,407 | ||||||
CBIZ, Inc.* | 540 | 16,281 | ||||||
CRA International, Inc. | 260 | 14,344 | ||||||
GP Strategies Corp.* | 1,159 | 15,218 | ||||||
Heidrick & Struggles International, Inc. | 458 | 16,438 | ||||||
Insperity, Inc. | 159 | 14,103 | ||||||
KBR, Inc. | 437 | 13,547 | ||||||
Kelly Services, Inc. (Class A Stock)* | 686 | 14,282 | ||||||
Korn Ferry | 301 | 18,527 | ||||||
ManTech International Corp. (Class A Stock) | 147 | 11,489 | ||||||
Mistras Group, Inc.* | 1,758 | 13,994 |
See Notes to Financial Statements.
76 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Professional Services (cont'd.) | ||||||||
Resources Connection, Inc. | 1,184 | $ | 15,108 | |||||
TrueBlue, Inc.* | 743 | 15,477 | ||||||
|
| |||||||
224,961 | ||||||||
Real Estate Management & Development 0.8% | ||||||||
Cushman & Wakefield PLC* | 983 | 15,217 | ||||||
Forestar Group, Inc.* | 657 | 13,988 | ||||||
FRP Holdings, Inc.* | 315 | 14,219 | ||||||
Kennedy-Wilson Holdings, Inc. | 828 | 15,533 | ||||||
Marcus & Millichap, Inc.* | 358 | 13,558 | ||||||
Realogy Holdings Corp.* | 918 | 13,843 | ||||||
Tejon Ranch Co.* | 866 | 14,133 | ||||||
|
| |||||||
100,491 | ||||||||
Road & Rail 0.5% | ||||||||
ArcBest Corp. | 293 | 17,284 | ||||||
Covenant Logistics Group, Inc. (Class A Stock)* | 916 | 16,653 | ||||||
Heartland Express, Inc. | 741 | 13,486 | ||||||
Werner Enterprises, Inc. | 332 | 14,250 | ||||||
|
| |||||||
61,673 | ||||||||
Semiconductors & Semiconductor Equipment 0.9% | ||||||||
Amkor Technology, Inc. | 820 | 19,590 | ||||||
Axcelis Technologies, Inc.* | 370 | 13,642 | ||||||
Diodes, Inc.* | 194 | 15,233 | ||||||
NeoPhotonics Corp.* | 1,205 | 11,580 | ||||||
Onto Innovation, Inc.* | 253 | 15,802 | ||||||
Photronics, Inc.* | 1,236 | 14,721 | ||||||
Rambus, Inc.* | 683 | 14,329 | ||||||
|
| |||||||
104,897 | ||||||||
Software 0.9% | ||||||||
Asure Software, Inc.* | 1,795 | 13,983 | ||||||
Cloudera, Inc.* | 1,054 | 17,012 | ||||||
Cognyte Software Ltd. (Israel)* | 194 | 5,601 | ||||||
InterDigital, Inc.(a) | 221 | 14,005 | ||||||
Park City Group, Inc.* | 2,233 | 13,577 | ||||||
SecureWorks Corp. (Class A Stock)* | 905 | 13,059 | ||||||
Verint Systems, Inc.* | 194 | 9,562 | ||||||
VirnetX Holding Corp. | 2,617 | 18,214 | ||||||
|
| |||||||
105,013 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Specialty Retail 3.7% | ||||||||
Aaron’s Co., Inc. (The)* | 700 | $ | 15,372 | |||||
Abercrombie & Fitch Co. (Class A Stock) | 599 | 16,395 | ||||||
American Eagle Outfitters, Inc. | 614 | 15,780 | ||||||
America’s Car-Mart, Inc.* | 118 | 15,930 | ||||||
Asbury Automotive Group, Inc.* | 94 | 15,928 | ||||||
Buckle, Inc. (The)(a) | 423 | 16,260 | ||||||
Cato Corp. (The) (Class A Stock) | 1,273 | 15,709 | ||||||
Citi Trends, Inc. | 254 | 19,784 | ||||||
Conn’s, Inc.* | 1,062 | 15,070 | ||||||
Container Store Group, Inc. (The)* | 1,112 | 17,047 | ||||||
Genesco, Inc.* | 374 | 16,808 | ||||||
Group 1 Automotive, Inc. | 96 | 14,634 | ||||||
Haverty Furniture Cos., Inc. | 433 | 15,662 | ||||||
Hibbett Sports, Inc.* | 267 | 17,157 | ||||||
Lumber Liquidators Holdings, Inc.* | 473 | 11,716 | ||||||
MarineMax, Inc.* | 330 | 14,734 | ||||||
ODP Corp. (The)* | 308 | 11,787 | ||||||
Rent-A-Center, Inc. | 315 | 18,194 | ||||||
Sally Beauty Holdings, Inc.* | 978 | 15,746 | ||||||
Shoe Carnival, Inc. | 348 | 17,038 | ||||||
Signet Jewelers Ltd.* | 400 | 19,912 | ||||||
Sleep Number Corp.* | 146 | 20,021 | ||||||
Sonic Automotive, Inc. (Class A Stock) | 332 | 15,309 | ||||||
Tilly’s, Inc. (Class A Stock)* | 1,603 | 16,543 | ||||||
Urban Outfitters, Inc.* | 522 | 17,696 | ||||||
Winmark Corp. | 82 | 14,472 | ||||||
Zumiez, Inc.* | 326 | 14,696 | ||||||
|
| |||||||
435,400 | ||||||||
Technology Hardware, Storage & Peripherals 0.1% | ||||||||
Super Micro Computer, Inc.* | 422 | 13,770 | ||||||
Textiles, Apparel & Luxury Goods 1.5% | ||||||||
Fossil Group, Inc.* | 1,246 | 18,864 | ||||||
G-III Apparel Group Ltd.* | 550 | 15,834 | ||||||
Kontoor Brands, Inc. | 363 | 15,337 | ||||||
Lakeland Industries, Inc.* | 546 | �� | 17,139 | |||||
Movado Group, Inc. | 712 | 16,234 | ||||||
Rocky Brands, Inc. | 409 | 17,828 | ||||||
Steven Madden Ltd. | 420 | 15,536 | ||||||
Superior Group of Cos, Inc. | 573 | 13,649 | ||||||
Unifi, Inc.* | 794 | 19,794 |
See Notes to Financial Statements.
78 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Textiles, Apparel & Luxury Goods (cont'd.) | ||||||||
Vera Bradley, Inc.* | 1,580 | $ | 14,994 | |||||
Wolverine World Wide, Inc. | 470 | 16,427 | ||||||
|
| |||||||
181,636 | ||||||||
Thrifts & Mortgage Finance 4.9% | ||||||||
Axos Financial, Inc.* | 356 | 16,472 | ||||||
Bridgewater Bancshares, Inc.* | 1,003 | 14,493 | ||||||
ESSA Bancorp, Inc. | 970 | 15,239 | ||||||
Essent Group Ltd. | 325 | 13,400 | ||||||
Flagstar Bancorp, Inc. | 313 | 13,581 | ||||||
FS Bancorp, Inc. | 247 | 14,976 | ||||||
Home Bancorp, Inc. | 498 | 16,110 | ||||||
HomeStreet, Inc. | 397 | 17,055 | ||||||
Luther Burbank Corp. | 1,434 | 14,641 | ||||||
Merchants Bancorp | 485 | 16,505 | ||||||
Meridian Bancorp, Inc. | 931 | 15,594 | ||||||
Meta Financial Group, Inc. | 379 | 16,786 | ||||||
MMA Capital Holdings, Inc.* | 609 | 13,520 | ||||||
Mr. Cooper Group, Inc.* | 481 | 15,128 | ||||||
Northfield Bancorp, Inc. | 1,119 | 15,319 | ||||||
Northwest Bancshares, Inc. | 1,074 | 15,165 | ||||||
OP Bancorp | 1,741 | 16,000 | ||||||
PCSB Financial Corp. | 951 | 15,368 | ||||||
PDL Community Bancorp* | 1,528 | 15,555 | ||||||
PennyMac Financial Services, Inc. | 240 | 14,210 | ||||||
Pioneer Bancorp, Inc.* | 1,376 | 14,861 | ||||||
Premier Financial Corp. | 578 | 17,722 | ||||||
Provident Bancorp, Inc. | 1,329 | 16,280 | ||||||
Provident Financial Services, Inc. | 744 | 15,051 | ||||||
Prudential Bancorp, Inc. | 1,158 | 15,691 | ||||||
Radian Group, Inc. | 701 | 14,300 | ||||||
Riverview Bancorp, Inc. | 2,579 | 17,021 | ||||||
Security National Financial Corp. (Class A Stock)* | 1,580 | 14,236 | ||||||
Southern Missouri Bancorp, Inc. | 450 | 16,533 | ||||||
Standard AVB Financial Corp. | 446 | 14,571 | ||||||
Territorial Bancorp, Inc. | 559 | 13,740 | ||||||
Timberland Bancorp, Inc. | 536 | 14,874 | ||||||
TrustCo Bank Corp. | 2,193 | 15,088 | ||||||
Walker & Dunlop, Inc. | 163 | 16,245 | ||||||
Washington Federal, Inc. | 515 | 15,563 | ||||||
Waterstone Financial, Inc. | 755 | 14,670 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Thrifts & Mortgage Finance (cont'd.) | ||||||||
Western New England Bancorp, Inc. | 2,240 | $ | 17,942 | |||||
WSFS Financial Corp. | 317 | 16,845 | ||||||
|
| |||||||
586,350 | ||||||||
Tobacco 0.1% | ||||||||
Universal Corp. | 304 | 15,449 | ||||||
Trading Companies & Distributors 2.0% | ||||||||
Applied Industrial Technologies, Inc. | 188 | 16,050 | ||||||
Beacon Roofing Supply, Inc.* | 335 | 16,023 | ||||||
Boise Cascade Co. | 271 | 13,534 | ||||||
CAI International, Inc. | 436 | 19,184 | ||||||
GMS, Inc.* | 424 | 15,518 | ||||||
Lawson Products, Inc.* | 281 | 14,893 | ||||||
McGrath RentCorp | 202 | 15,687 | ||||||
MRC Global, Inc.* | 2,089 | 18,258 | ||||||
Rush Enterprises, Inc., | ||||||||
(Class A Stock) | 307 | 13,026 | ||||||
(Class B Stock) | 349 | 13,245 | ||||||
Systemax, Inc. | 372 | 13,429 | ||||||
Titan Machinery, Inc.* | 651 | 15,949 | ||||||
Triton International Ltd. (Bermuda) | 303 | 17,507 | ||||||
Veritiv Corp.* | 678 | 16,123 | ||||||
WESCO International, Inc.* | 179 | 14,370 | ||||||
|
| |||||||
232,796 | ||||||||
Water Utilities 0.4% | ||||||||
Artesian Resources Corp. (Class A Stock) | 386 | 14,282 | ||||||
Consolidated Water Co. Ltd. (Cayman Islands) | 1,161 | 15,035 | ||||||
SJW Group | 215 | 13,476 | ||||||
|
| |||||||
42,793 | ||||||||
Wireless Telecommunication Services 0.1% | ||||||||
Spok Holdings, Inc. | 1,190 | 12,757 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS |
| 11,823,365 | ||||||
|
|
See Notes to Financial Statements.
80 |
Description | Shares | Value | ||||||||||||||
SHORT-TERM INVESTMENTS 2.5% | ||||||||||||||||
AFFILIATED MUTUAL FUND 2.0% | ||||||||||||||||
PGIM Institutional Money Market Fund |
| 230,368 | $ | 230,253 | ||||||||||||
|
| |||||||||||||||
Interest | Maturity | Principal | ||||||||||||||
TIME DEPOSIT 0.5% | ||||||||||||||||
BNP Paribas (France) | 0.005 | % | 03/01/21 | 60 | 60,003 | |||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS | 290,256 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 101.9% | 12,113,621 | |||||||||||||||
Liabilities in excess of other assets (1.9)% |
| (221,697 | ) | |||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% |
| $ | 11,891,924 | |||||||||||||
|
|
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.
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $225,786; cash collateral of $230,168 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
* | 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.
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, 2021
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, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Common Stocks | ||||||||||||
Aerospace & Defense | $ | 101,500 | $ | — | $ | — | ||||||
Air Freight & Logistics | 73,926 | — | — | |||||||||
Airlines | 46,137 | — | — | |||||||||
Auto Components | 121,518 | — | — | |||||||||
Banks | 2,460,096 | — | — | |||||||||
Beverages | 30,309 | — | — | |||||||||
Biotechnology | 383,910 | — | — | |||||||||
Building Products | 116,533 | — | — | |||||||||
Capital Markets | 274,832 | — | — | |||||||||
Chemicals | 248,563 | — | — | |||||||||
Commercial Services & Supplies | 253,149 | — | — | |||||||||
Communications Equipment | 88,923 | — | — | |||||||||
Construction & Engineering | 198,254 | — | — | |||||||||
Construction Materials | 16,004 | — | — | |||||||||
Consumer Finance | 100,765 | — | — | |||||||||
Containers & Packaging | 60,285 | — | — | |||||||||
Distributors | 29,055 | — | — | |||||||||
Diversified Consumer Services | 74,349 | — | — | |||||||||
Diversified Financial Services | 73,179 | — | — | |||||||||
Diversified Telecommunication Services | 87,553 | — | — | |||||||||
Electric Utilities | 42,679 | — | — | |||||||||
Electrical Equipment | 123,010 | — | — | |||||||||
Electronic Equipment, Instruments & Components | 280,337 | — | — | |||||||||
Energy Equipment & Services | 209,449 | — | — | |||||||||
Equity Real Estate Investment Trusts (REITs) | 715,225 | — | — | |||||||||
Food & Staples Retailing | 105,768 | — | — | |||||||||
Food Products | 35,777 | — | — | |||||||||
Gas Utilities | 89,112 | — | — | |||||||||
Health Care Equipment & Supplies | 238,918 | — | — | |||||||||
Health Care Providers & Services | 161,091 | — | — | |||||||||
Health Care Technology | 55,536 | — | — | |||||||||
Hotels, Restaurants & Leisure | 117,637 | — | — | |||||||||
Household Durables | 239,379 | — | — | |||||||||
Household Products | 29,749 | — | — |
See Notes to Financial Statements.
82 |
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Assets (continued) | ||||||||||||
Common Stocks (continued) | ||||||||||||
Industrial Conglomerates | $ | 15,523 | $ | — | $ | — | ||||||
Insurance | 335,496 | — | — | |||||||||
Interactive Media & Services | 62,659 | — | — | |||||||||
Internet & Direct Marketing Retail | 65,143 | — | — | |||||||||
IT Services | 103,307 | 1,637 | — | |||||||||
Leisure Products | 99,549 | — | — | |||||||||
Life Sciences Tools & Services | 14,079 | — | — | |||||||||
Machinery | 425,999 | — | — | |||||||||
Marine | 85,469 | — | — | |||||||||
Media | 246,087 | — | — | |||||||||
Metals & Mining | 129,911 | — | — | |||||||||
Mortgage Real Estate Investment Trusts (REITs) | 354,605 | — | — | |||||||||
Multiline Retail | 18,172 | — | — | |||||||||
Multi-Utilities | 29,462 | — | — | |||||||||
Oil, Gas & Consumable Fuels | 235,279 | — | — | |||||||||
Paper & Forest Products | 76,451 | — | — | |||||||||
Personal Products | 41,483 | — | — | |||||||||
Pharmaceuticals | 82,561 | — | — | |||||||||
Professional Services | 224,961 | — | — | |||||||||
Real Estate Management & Development | 100,491 | — | — | |||||||||
Road & Rail | 61,673 | — | — | |||||||||
Semiconductors & Semiconductor Equipment | 104,897 | — | — | |||||||||
Software | 105,013 | — | — | |||||||||
Specialty Retail | 435,400 | — | — | |||||||||
Technology Hardware, Storage & Peripherals | 13,770 | — | — | |||||||||
Textiles, Apparel & Luxury Goods | 181,636 | — | — | |||||||||
Thrifts & Mortgage Finance | 586,350 | — | — | |||||||||
Tobacco | 15,449 | — | — | |||||||||
Trading Companies & Distributors | 232,796 | — | — | |||||||||
Water Utilities | 42,793 | — | — | |||||||||
Wireless Telecommunication Services | 12,757 | — | — | |||||||||
Affiliated Mutual Fund | 230,253 | — | — | |||||||||
Time Deposit | — | 60,003 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 12,051,981 | $ | 61,640 | $ | — | ||||||
|
|
|
|
|
|
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, 2021
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of February 28, 2021 were as follows:
Banks | 20.7 | % | ||
Equity Real Estate Investment Trusts (REITs) | 6.0 | |||
Thrifts & Mortgage Finance | 4.9 | |||
Specialty Retail | 3.7 | |||
Machinery | 3.6 | |||
Biotechnology | 3.2 | |||
Mortgage Real Estate Investment Trusts (REITs) | 3.0 | |||
Insurance | 2.8 | |||
Electronic Equipment, Instruments & Components | 2.4 | |||
Capital Markets | 2.3 | |||
Commercial Services & Supplies | 2.1 | |||
Chemicals | 2.1 | |||
Media | 2.1 | |||
Household Durables | 2.0 | |||
Health Care Equipment & Supplies | 2.0 | |||
Oil, Gas & Consumable Fuels | 2.0 | |||
Trading Companies & Distributors | 2.0 | |||
Affiliated Mutual Fund (2.0% represents investments purchased with collateral from securities on loan) | 2.0 | |||
Professional Services | 1.9 | |||
Energy Equipment & Services | 1.8 | |||
Construction & Engineering | 1.7 | |||
Textiles, Apparel & Luxury Goods | 1.5 | |||
Health Care Providers & Services | 1.4 | |||
Metals & Mining | 1.1 | |||
Electrical Equipment | 1.0 | |||
Auto Components | 1.0 | |||
Hotels, Restaurants & Leisure | 1.0 | |||
Building Products | 1.0 | |||
Food & Staples Retailing | 0.9 | |||
IT Services | 0.9 | |||
Software | 0.9 | |||
Semiconductors & Semiconductor Equipment | 0.9 | |||
Aerospace & Defense | 0.9 | |||
Consumer Finance | 0.8 | |||
Real Estate Management & Development | 0.8 | |||
Leisure Products | 0.8 | |||
Gas Utilities | 0.8 | |||
Communications Equipment | 0.7 | |||
Diversified Telecommunication Services | 0.7 | |||
Marine | 0.7 | |||
Pharmaceuticals | 0.7 | |||
Air Freight & Logistics | 0.6 | |||
Diversified Consumer Services | 0.6 | |||
Diversified Financial Services | 0.6 | |||
Internet & Direct Marketing Retail | 0.6 | |||
Paper & Forest Products | 0.6 | |||
Interactive Media & Services | 0.5 | |||
Road & Rail | 0.5 | |||
Containers & Packaging | 0.5 | |||
Time Deposit | 0.5 | |||
Health Care Technology | 0.5 | |||
Airlines | 0.4 | |||
Water Utilities | 0.4 | |||
Electric Utilities | 0.4 | |||
Personal Products | 0.3 | |||
Food Products | 0.3 | |||
Beverages | 0.3 | |||
Household Products | 0.3 | |||
Multi-Utilities | 0.2 | |||
Distributors | 0.2 | |||
Multiline Retail | 0.2 | |||
Construction Materials | 0.1 | |||
Industrial Conglomerates | 0.1 | |||
Tobacco | 0.1 | |||
Life Sciences Tools & Services | 0.1 | |||
Technology Hardware, Storage & Peripherals | 0.1 | |||
Wireless Telecommunication Services | 0.1 | |||
|
| |||
101.9 | ||||
Liabilities in excess of other assets | (1.9) | |||
|
| |||
100.0 | % | |||
|
|
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting
See Notes to Financial Statements.
84 |
and related netting arrangements for financial instruments/transactions, where the legal right to set-off exists, is presented in the summary below:
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||||||||
Securities on Loan | $ | 225,786 | $ | (225,786 | ) | $ | — | |||||
|
|
|
|
|
|
(1) | Collateral amount disclosed by the Fund is limited to the market value of the financial instruments/transactions. |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 85 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Statement of Assets & Liabilities (unaudited)
as of February 28, 2021
Assets | ||||
Investments at value, including securities on loan of $225,786: | ||||
Unaffiliated investments (cost $9,599,837) | $ | 11,883,368 | ||
Affiliated investments (cost $230,195) | 230,253 | |||
Interest and dividends receivable | 11,454 | |||
|
| |||
Total Assets | 12,125,075 | |||
|
| |||
Liabilities | ||||
Payable to broker for collateral for securities on loan | 230,168 | |||
Management fee payable | 2,597 | |||
Other liabilities | 386 | |||
|
| |||
Total Liabilities | 233,151 | |||
|
| |||
Net Assets | $ | 11,891,924 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 200 | ||
Paid-in capital in excess of par | 10,042,537 | |||
Total distributable earnings (loss) | 1,849,187 | |||
|
| |||
Net assets, February 28, 2021 | $ | 11,891,924 | ||
|
| |||
Net asset value, offering price and redemption price per share, | $ | 59.46 | ||
|
|
See Notes to Financial Statements.
86 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Statement of Operations (unaudited)
Six Months Ended February 28, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $117 foreign withholding tax) | $ | 88,476 | ||
Income from securities lending, net (including affiliated income of $294) | 770 | |||
Miscellaneous Income | 98 | |||
|
| |||
Total income | 89,344 | |||
|
| |||
Expenses | ||||
Management fee | 14,089 | |||
|
| |||
Total expenses | 14,089 | |||
|
| |||
Net investment income (loss) | 75,255 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(91)) | 857,889 | |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $6) | 2,736,973 | |||
|
| |||
Net gain (loss) on investment transactions | 3,594,862 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 3,670,117 | ||
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 87 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Statements of Changes in Net Assets
Six Months Ended February 28, 2021 (unaudited) | Year August 31, 2020 | |||||||
Increase (Decrease) in Net Assets |
| |||||||
Operations |
| |||||||
Net investment income (loss) | $ | 75,255 | $ | 141,662 | ||||
Net realized gain (loss) on investments | 857,889 | (1,278,715 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments | 2,736,973 | 399,673 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 3,670,117 | (737,380 | ) | |||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | (113,416 | ) | (280,842 | ) | ||||
|
|
|
| |||||
Total increase (decrease) | 3,556,701 | (1,018,222 | ) | |||||
Net Assets: | ||||||||
Beginning of period | 8,335,223 | 9,353,445 | ||||||
|
|
|
| |||||
End of period | $ | 11,891,924 | $ | 8,335,223 | ||||
|
|
|
|
See Notes to Financial Statements.
88 |
PGIM QMA Strategic Alpha International Equity ETF
Schedule of Investments (unaudited)
as of February 28, 2021
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 99.2% | ||||||||
COMMON STOCKS 97.9% | ||||||||
Australia 5.4% | ||||||||
AGL Energy Ltd. | 11,261 | $ | 81,189 | |||||
Ampol Ltd. | 4,258 | 80,532 | ||||||
APA Group | 12,531 | 89,574 | ||||||
Aurizon Holdings Ltd. | 29,461 | 86,368 | ||||||
BHP Group Ltd. | 2,400 | 90,727 | ||||||
BHP Group PLC | 2,902 | 91,757 | ||||||
Brambles Ltd. | 11,027 | 83,999 | ||||||
Coca-Cola Amatil Ltd. | 8,725 | 89,893 | ||||||
Coles Group Ltd. | 6,368 | 75,115 | ||||||
Computershare Ltd. | 8,227 | 84,003 | ||||||
CSL Ltd. | 415 | 83,851 | ||||||
Dexus | 13,550 | 92,792 | ||||||
Goodman Group | 6,704 | 85,423 | ||||||
Newcrest Mining Ltd. | 4,757 | 90,189 | ||||||
REA Group Ltd. | 755 | 79,472 | ||||||
Rio Tinto Ltd. | 986 | 96,496 | ||||||
Scentre Group | 41,966 | 92,997 | ||||||
SEEK Ltd. | 3,787 | 74,887 | ||||||
Sonic Healthcare Ltd. | 3,138 | 76,613 | ||||||
South32 Ltd. | 47,136 | 100,465 | ||||||
Telstra Corp. Ltd. | 35,246 | 83,530 | ||||||
Vicinity Centres | 73,839 | 93,177 | ||||||
Wesfarmers Ltd. | 2,277 | 86,270 | ||||||
Woodside Petroleum Ltd. | 4,494 | 84,961 | ||||||
Woolworths Group Ltd. | 2,841 | 86,129 | ||||||
|
| |||||||
2,160,409 | ||||||||
Austria 0.7% | ||||||||
Erste Group Bank AG* | 2,803 | 92,294 | ||||||
Raiffeisen Bank International AG | 4,223 | 85,702 | ||||||
voestalpine AG | 2,376 | 94,144 | ||||||
|
| |||||||
272,140 | ||||||||
Belgium 1.1% | ||||||||
Ageas SA/NV | 1,642 | 92,045 | ||||||
Etablissements Franz Colruyt NV | 1,480 | 88,642 | ||||||
Groupe Bruxelles Lambert SA | 893 | 88,523 | ||||||
Proximus SADP | 4,223 | 82,543 | ||||||
UCB SA | 867 | 86,239 | ||||||
|
| |||||||
437,992 |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 89 |
PGIM QMA Strategic Alpha International Equity ETF
Schedule of Investments (unaudited) (continued)
as of February 28, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Denmark 2.0% | ||||||||
AP Moller - Maersk A/S, | ||||||||
(Class A Stock) | 52 | $ | 104,368 | |||||
(Class B Stock) | 48 | 103,115 | ||||||
Carlsberg A/S (Class B Stock) | 576 | 90,654 | ||||||
Demant A/S* | 2,122 | 87,418 | ||||||
Genmab A/S* | 205 | 68,852 | ||||||
GN Store Nord A/S | 1,015 | 85,308 | ||||||
H Lundbeck A/S | 2,141 | 81,531 | ||||||
Novo Nordisk A/S (Class B Stock) | 1,082 | 76,886 | ||||||
ROCKWOOL International A/S (Class B Stock) | 246 | 89,169 | ||||||
|
| |||||||
787,301 | ||||||||
Finland 1.5% | ||||||||
Elisa OYJ | 1,479 | 88,064 | ||||||
Kesko OYJ (Class B Stock) | 3,440 | 87,327 | ||||||
Kone OYJ (Class B Stock)* | 1,099 | 87,622 | ||||||
Neste OYJ | 1,361 | 89,430 | ||||||
Nordea Bank Abp | 9,369 | 84,681 | ||||||
Orion OYJ (Class B Stock) | 2,087 | 85,539 | ||||||
Stora Enso OYJ (Class R Stock) | 4,736 | 93,285 | ||||||
|
| |||||||
615,948 | ||||||||
France 7.3% | ||||||||
Amundi SA, 144A* | 1,138 | 86,502 | ||||||
Arkema SA | 820 | 90,528 | ||||||
Atos SE* | 1,130 | 88,103 | ||||||
BioMerieux | 617 | 78,315 | ||||||
Bouygues SA | 2,176 | 88,110 | ||||||
Bureau Veritas SA | 3,368 | 90,985 | ||||||
Capgemini SE | 531 | 85,306 | ||||||
Carrefour SA | 4,742 | 82,647 | ||||||
Cie de Saint-Gobain* | 1,743 | 93,416 | ||||||
Cie Generale des Etablissements Michelin SCA | 645 | 93,192 | ||||||
Credit Agricole SA* | 6,706 | 93,978 | ||||||
Danone SA | 1,342 | 91,420 | ||||||
Gecina SA | 567 | 78,468 | ||||||
Hermes International | 81 | 90,225 | ||||||
Iliad SA | 485 | 85,787 | ||||||
Ipsen SA | 1,057 | 90,102 | ||||||
Klepierre SA | 4,054 | 95,626 | ||||||
La Francaise des Jeux SAEM, 144A | 2,028 | 91,489 | ||||||
Legrand SA | 982 | 85,213 |
See Notes to Financial Statements.
90 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
France (cont'd.) | ||||||||
L’Oreal SA | 237 | $ | 86,586 | |||||
LVMH Moet Hennessy Louis Vuitton SE | 140 | 88,681 | ||||||
Orange SA | 7,463 | 85,975 | ||||||
Pernod Ricard SA | 459 | 87,141 | ||||||
Publicis Groupe SA | 1,578 | 92,417 | ||||||
Sanofi | 952 | 87,067 | ||||||
Sartorius Stedim Biotech | 182 | 79,492 | ||||||
Schneider Electric SE | 587 | 87,008 | ||||||
SEB SA | 453 | 81,275 | ||||||
Teleperformance | 262 | 92,654 | ||||||
Thales SA | 966 | 91,424 | ||||||
TOTAL SE | 1,962 | 90,843 | ||||||
Vinci SA | 880 | 91,354 | ||||||
Wendel SE | 745 | 85,124 | ||||||
|
| |||||||
2,906,453 | ||||||||
Germany 6.6% | ||||||||
Allianz SE | 379 | 91,365 | ||||||
BASF SE | 1,137 | 92,915 | ||||||
Bayerische Motoren Werke AG | 980 | 84,543 | ||||||
Bechtle AG | 447 | 84,297 | ||||||
Brenntag SE | 1,141 | 88,465 | ||||||
Continental AG | 656 | 94,109 | ||||||
Covestro AG, 144A | 1,272 | 92,023 | ||||||
Daimler AG | 1,146 | 91,604 | ||||||
Deutsche Post AG | 1,634 | 80,950 | ||||||
Deutsche Telekom AG | 5,082 | 92,159 | ||||||
Deutsche Wohnen SE | 1,860 | 87,411 | ||||||
Evonik Industries AG | 2,656 | 89,376 | ||||||
Fresenius Medical Care AG & Co. KGaA | 1,230 | 85,126 | ||||||
Fresenius SE & Co. KGaA | 2,080 | 88,941 | ||||||
GEA Group AG | 2,493 | 86,087 | ||||||
HeidelbergCement AG | 1,151 | 90,935 | ||||||
Henkel AG & Co. KGaA | 985 | 87,232 | ||||||
Knorr-Bremse AG | 698 | 88,883 | ||||||
LANXESS AG | 1,211 | 89,597 | ||||||
LEG Immobilien AG | 636 | 86,820 | ||||||
Merck KGaA | 510 | 82,794 | ||||||
Rational AG | 94 | 80,412 | ||||||
RWE AG | 2,280 | 86,214 | ||||||
SAP SE | 718 | 88,415 | ||||||
Siemens AG | 537 | 82,920 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Germany (cont'd.) | ||||||||
Siemens Healthineers AG, 144A | 1,656 | $ | 91,570 | |||||
Telefonica Deutschland Holding AG | 31,359 | 83,618 | ||||||
United Internet AG | 1,961 | 86,313 | ||||||
Volkswagen AG | 398 | 93,016 | ||||||
Vonovia SE | 1,384 | 88,069 | ||||||
|
| |||||||
2,636,179 | ||||||||
Hong Kong 4.4% | ||||||||
BOC Hong Kong Holdings Ltd. | 28,854 | 95,976 | ||||||
CK Asset Holdings Ltd. | 16,983 | 99,733 | ||||||
CK Hutchison Holdings Ltd. | 12,596 | 95,163 | ||||||
CK Infrastructure Holdings Ltd. | 15,058 | 87,264 | ||||||
CLP Holdings Ltd. | 9,691 | 94,518 | ||||||
Hang Lung Properties Ltd. | 31,888 | 82,634 | ||||||
Henderson Land Development Co. Ltd. | 19,683 | 85,518 | ||||||
HKT Trust & HKT Ltd. | 66,768 | 90,729 | ||||||
Hongkong Land Holdings Ltd. | 19,707 | 94,988 | ||||||
Jardine Matheson Holdings Ltd. | 1,776 | 92,920 | ||||||
Jardine Strategic Holdings Ltd. | 3,706 | 95,911 | ||||||
Link REIT | 10,177 | 96,043 | ||||||
Power Assets Holdings Ltd. | 16,881 | 93,802 | ||||||
Sino Land Co. Ltd. | 60,909 | 92,191 | ||||||
Sun Hung Kai Properties Ltd. | 5,939 | 95,404 | ||||||
Swire Pacific Ltd. (Class A Stock) | 13,300 | 97,481 | ||||||
Swire Properties Ltd. | 30,550 | 98,270 | ||||||
WH Group Ltd., 144A | 107,156 | 96,153 | ||||||
Wharf Real Estate Investment Co. Ltd. | 14,324 | 85,596 | ||||||
|
| |||||||
1,770,294 | ||||||||
Ireland 0.6% | ||||||||
DCC PLC | 1,094 | 87,944 | ||||||
James Hardie Industries PLC | 2,866 | 80,513 | ||||||
Smurfit Kappa Group PLC | 1,806 | 85,331 | ||||||
|
| |||||||
253,788 | ||||||||
Israel 0.7% | ||||||||
Check Point Software Technologies Ltd.* | 772 | 85,105 | ||||||
ICL Group Ltd. | 15,191 | 88,208 | ||||||
Israel Discount Bank Ltd. (Class A Stock) | 23,482 | 87,329 | ||||||
|
| |||||||
260,642 |
See Notes to Financial Statements.
92 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Italy 2.4% | ||||||||
Assicurazioni Generali SpA | 4,914 | $ | 92,196 | |||||
DiaSorin SpA | 395 | 77,398 | ||||||
Enel SpA | 8,901 | 84,241 | ||||||
Eni SpA | 8,186 | 93,652 | ||||||
Intesa Sanpaolo SpA* | 35,327 | 90,959 | ||||||
Mediobanca Banca di Credito Finanziario SpA* | 8,314 | 86,449 | ||||||
Moncler SpA* | 1,481 | 91,668 | ||||||
Recordati Industria Chimica e Farmaceutica SpA | 1,704 | 86,638 | ||||||
Snam SpA | 16,932 | 87,764 | ||||||
Telecom Italia SpA | 180,369 | 85,504 | ||||||
Terna Rete Elettrica Nazionale SpA | 12,415 | 86,401 | ||||||
|
| |||||||
962,870 | ||||||||
Japan 38.7% | ||||||||
Advantest Corp. | 1,003 | 82,333 | ||||||
AGC, Inc. | 2,407 | 88,065 | ||||||
Air Water, Inc. | 5,188 | 85,270 | ||||||
Aisin Seiki Co. Ltd. | 2,622 | 89,167 | ||||||
Ajinomoto Co., Inc. | 3,938 | 78,283 | ||||||
Alfresa Holdings Corp. | 4,363 | 84,072 | ||||||
Amada Co. Ltd. | 7,472 | 90,495 | ||||||
Asahi Group Holdings Ltd. | 1,881 | 81,384 | ||||||
Asahi Kasei Corp. | 8,855 | 95,200 | ||||||
Astellas Pharma, Inc. | 5,369 | 84,316 | ||||||
Azbil Corp. | 1,915 | 81,293 | ||||||
Bandai Namco Holdings, Inc. | 1,059 | 80,939 | ||||||
Bank of Kyoto Ltd. (The) | 1,433 | 85,903 | ||||||
Bridgestone Corp. | 2,231 | 87,088 | ||||||
Brother Industries Ltd. | 4,399 | 86,375 | ||||||
Canon, Inc. | 4,010 | 86,242 | ||||||
Casio Computer Co. Ltd. | 4,835 | 93,076 | ||||||
Chiba Bank Ltd. (The) | 12,633 | 80,471 | ||||||
Chubu Electric Power Co., Inc. | 7,218 | 88,536 | ||||||
Chugai Pharmaceutical Co. Ltd. | 1,673 | 74,755 | ||||||
Concordia Financial Group Ltd. | 22,442 | 86,530 | ||||||
Cosmos Pharmaceutical Corp. | 597 | 85,410 | ||||||
Dai Nippon Printing Co. Ltd. | 4,915 | 88,253 | ||||||
Daikin Industries Ltd. | 406 | 78,919 | ||||||
Daiwa House Industry Co. Ltd. | 2,877 | 81,051 | ||||||
Daiwa Securities Group, Inc. | 17,527 | 85,107 | ||||||
Denso Corp. | 1,416 | 84,858 | ||||||
Disco Corp. | 273 | 85,541 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Japan (cont'd.) | ||||||||
Eisai Co. Ltd. | 1,239 | $ | 85,072 | |||||
ENEOS Holdings, Inc. | 20,365 | 89,354 | ||||||
FANUC Corp. | 330 | 81,544 | ||||||
Fast Retailing Co. Ltd. | 93 | 91,608 | ||||||
Fuji Electric Co. Ltd. | 2,236 | 92,717 | ||||||
FUJIFILM Holdings Corp. | 1,653 | 94,129 | ||||||
Fujitsu Ltd. | 585 | 84,297 | ||||||
Hakuhodo DY Holdings, Inc. | 5,255 | 86,470 | ||||||
Hino Motors Ltd. | 8,951 | 83,972 | ||||||
Hirose Electric Co. Ltd. | 620 | 90,387 | ||||||
Hitachi Ltd. | 1,922 | 87,919 | ||||||
Honda Motor Co. Ltd. | 3,096 | 84,563 | ||||||
Hoshizaki Corp. | 882 | 77,282 | ||||||
Hoya Corp. | 722 | 81,957 | ||||||
Hulic Co. Ltd. | 7,914 | 88,201 | ||||||
Iida Group Holdings Co. Ltd. | 3,619 | 81,890 | ||||||
Inpex Corp. | 12,420 | 91,348 | ||||||
Isuzu Motors Ltd. | 8,171 | 85,393 | ||||||
ITOCHU Corp. | 2,858 | 84,940 | ||||||
Japan Post Bank Co. Ltd.(a) | 9,130 | 86,850 | ||||||
Japan Post Holdings Co. Ltd. | 9,872 | 84,333 | ||||||
Japan Real Estate Investment Corp. | 14 | 85,239 | ||||||
Japan Retail Fund Investment Corp. | 88 | 86,931 | ||||||
Japan Tobacco, Inc. | 4,880 | 88,128 | ||||||
JSR Corp. | 2,791 | 83,132 | ||||||
Kajima Corp. | 6,423 | 81,828 | ||||||
Kakaku.com, Inc. | 2,630 | 83,394 | ||||||
Kansai Electric Power Co., Inc. (The) | 8,893 | 88,642 | ||||||
KDDI Corp. | 2,783 | 85,896 | ||||||
Kikkoman Corp. | 1,259 | 83,032 | ||||||
Kirin Holdings Co. Ltd. | 4,436 | 86,914 | ||||||
Komatsu Ltd. | 2,913 | 87,176 | ||||||
Kubota Corp. | 4,179 | 94,385 | ||||||
Kuraray Co. Ltd. | 7,855 | 87,839 | ||||||
Kurita Water Industries Ltd. | 2,265 | 91,582 | ||||||
Kyocera Corp. | 1,244 | 80,035 | ||||||
Kyushu Electric Power Co., Inc. | 10,203 | 87,581 | ||||||
Lion Corp. | 4,426 | 84,953 | ||||||
Lixil Corp. | 3,263 | 91,436 | ||||||
Makita Corp. | 1,973 | 83,940 | ||||||
Marubeni Corp. | 11,908 | 88,443 | ||||||
Mazda Motor Corp. | 11,408 | 89,791 |
See Notes to Financial Statements.
94 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Japan (cont'd.) | ||||||||
McDonald’s Holdings Co. Japan Ltd. | 1,845 | $ | 91,389 | |||||
Medipal Holdings Corp. | 4,320 | 85,512 | ||||||
MEIJI Holdings Co. Ltd. | 1,348 | 85,487 | ||||||
MINEBEA MITSUMI, Inc. | 3,560 | 87,334 | ||||||
MISUMI Group, Inc. | 2,681 | 81,742 | ||||||
Mitsubishi Chemical Holdings Corp. | 12,930 | 89,738 | ||||||
Mitsubishi Corp. | 3,355 | 94,517 | ||||||
Mitsubishi Electric Corp. | 5,598 | 82,372 | ||||||
Mitsubishi Estate Co. Ltd. | 4,733 | 81,610 | ||||||
Mitsubishi Gas Chemical Co., Inc. | 3,852 | 89,583 | ||||||
Mitsubishi Heavy Industries Ltd. | 3,012 | 86,691 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 18,057 | 94,524 | ||||||
Mitsui & Co. Ltd. | 4,362 | 92,625 | ||||||
Mitsui Chemicals, Inc. | 3,142 | 96,681 | ||||||
Mitsui Fudosan Co. Ltd. | 3,899 | 87,787 | ||||||
Mizuho Financial Group, Inc. | 5,875 | 85,925 | ||||||
Murata Manufacturing Co. Ltd. | 970 | 82,636 | ||||||
Nabtesco Corp. | 1,878 | 79,634 | ||||||
NEC Corp. | 1,412 | 76,829 | ||||||
NGK Insulators Ltd. | 4,930 | 86,950 | ||||||
NGK Spark Plug Co. Ltd. | 4,938 | 83,477 | ||||||
NH Foods Ltd. | 1,865 | 78,470 | ||||||
Nintendo Co. Ltd. | 133 | 80,789 | ||||||
Nippon Building Fund, Inc. | 15 | 91,608 | ||||||
Nippon Express Co. Ltd. | 1,214 | 90,200 | ||||||
Nippon Telegraph & Telephone Corp. | 3,225 | 83,443 | ||||||
Nippon Yusen KK | 3,302 | 94,635 | ||||||
Nisshin Seifun Group, Inc. | 5,380 | 86,458 | ||||||
Nissin Foods Holdings Co. Ltd. | 1,132 | 85,488 | ||||||
Nitori Holdings Co. Ltd. | 419 | 78,124 | ||||||
Nitto Denko Corp. | 992 | 84,594 | ||||||
Nomura Holdings, Inc. | 14,751 | 85,632 | ||||||
Nomura Real Estate Holdings, Inc. | 3,895 | 87,660 | ||||||
Nomura Real Estate Master Fund, Inc. | 56 | 83,794 | ||||||
NSK Ltd. | 8,540 | 83,561 | ||||||
NTT Data Corp. | 5,735 | 87,428 | ||||||
Obayashi Corp. | 10,214 | 87,484 | ||||||
Olympus Corp. | 4,129 | 86,380 | ||||||
Omron Corp.(a) | 963 | 77,513 | ||||||
Ono Pharmaceutical Co. Ltd. | 3,104 | 83,398 | ||||||
ORIX Corp. | 5,629 | 95,132 | ||||||
Orix JREIT, Inc. | 51 | 86,742 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Japan (cont'd.) | ||||||||
Osaka Gas Co. Ltd. | 4,862 | $ | 86,936 | |||||
Otsuka Holdings Co. Ltd. | 2,122 | 84,088 | ||||||
Pan Pacific International Holdings Corp. | 3,679 | 86,112 | ||||||
Panasonic Corp. | 6,382 | 81,755 | ||||||
Persol Holdings Co. Ltd. | 4,404 | 87,051 | ||||||
Recruit Holdings Co. Ltd. | 1,835 | 90,911 | ||||||
Resona Holdings, Inc. | 20,787 | 83,405 | ||||||
Rinnai Corp. | 851 | 86,062 | ||||||
Ryohin Keikaku Co. Ltd. | 3,731 | 83,934 | ||||||
Santen Pharmaceutical Co. Ltd. | 6,074 | 83,308 | ||||||
SCSK Corp. | 1,516 | 89,172 | ||||||
Secom Co. Ltd. | 959 | 83,003 | ||||||
Sega Sammy Holdings, Inc. | 5,134 | 86,165 | ||||||
Seiko Epson Corp. | 5,299 | 86,697 | ||||||
Sekisui House Ltd. | 4,501 | 84,324 | ||||||
Seven & i Holdings Co. Ltd. | 2,288 | 86,652 | ||||||
Shimadzu Corp. | 2,346 | 84,293 | ||||||
Shimizu Corp. | 11,730 | 88,584 | ||||||
Shionogi & Co. Ltd. | 1,581 | 80,285 | ||||||
Shizuoka Bank Ltd. (The) | 11,774 | 85,934 | ||||||
SMC Corp. | 140 | 82,612 | ||||||
SoftBank Corp. | 5,929 | 80,151 | ||||||
Sohgo Security Services Co. Ltd. | 1,893 | 85,242 | ||||||
Sompo Holdings, Inc. | 2,221 | 85,010 | ||||||
Square Enix Holdings Co. Ltd. | 1,375 | 77,912 | ||||||
Stanley Electric Co. Ltd. | 2,689 | 79,589 | ||||||
Subaru Corp. | 4,575 | 85,345 | ||||||
Sumitomo Chemical Co. Ltd. | 18,492 | 89,342 | ||||||
Sumitomo Corp. | 6,152 | 88,908 | ||||||
Sumitomo Dainippon Pharma Co. Ltd. | 5,388 | 85,070 | ||||||
Sumitomo Electric Industries Ltd. | 6,003 | 87,093 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 2,532 | 88,885 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 2,584 | 84,893 | ||||||
Sumitomo Realty & Development Co. Ltd. | 2,638 | 90,825 | ||||||
Sundrug Co. Ltd. | 2,378 | 89,235 | ||||||
Suntory Beverage & Food Ltd. | 2,566 | 87,744 | ||||||
Suzuken Co. Ltd. | 2,218 | 84,479 | ||||||
Suzuki Motor Corp. | 1,842 | 79,472 | ||||||
Taiheiyo Cement Corp. | 3,689 | 91,779 | ||||||
Taisei Corp. | 2,502 | 88,137 | ||||||
Takeda Pharmaceutical Co. Ltd. | 2,574 | 86,496 | ||||||
TDK Corp. | 590 | 84,353 |
See Notes to Financial Statements.
96 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Japan (cont'd.) | ||||||||
Teijin Ltd. | 5,082 | $ | 87,247 | |||||
Terumo Corp. | 2,117 | 78,468 | ||||||
THK Co. Ltd. | 2,549 | 82,141 | ||||||
TIS, Inc. | 4,092 | 84,992 | ||||||
Tohoku Electric Power Co., Inc. | 10,160 | 89,309 | ||||||
Tokyo Electron Ltd. | 222 | 90,699 | ||||||
Tokyo Gas Co. Ltd. | 4,252 | 87,836 | ||||||
Toray Industries, Inc. | 13,490 | 88,157 | ||||||
Toshiba Corp. | 2,597 | 81,739 | ||||||
Tosoh Corp. | 4,377 | 80,071 | ||||||
TOTO Ltd. | 1,359 | 81,722 | ||||||
Toyo Suisan Kaisha Ltd. | 2,087 | 88,888 | ||||||
Toyota Industries Corp. | 1,017 | 86,821 | ||||||
Toyota Motor Corp. | 1,157 | 85,455 | ||||||
Toyota Tsusho Corp. | 1,987 | 83,137 | ||||||
Tsuruha Holdings, Inc. | 669 | 86,045 | ||||||
Unicharm Corp. | 1,938 | 76,651 | ||||||
United Urban Investment Corp. | 64 | 87,779 | ||||||
USS Co. Ltd. | 4,650 | 88,293 | ||||||
Welcia Holdings Co. Ltd. | 2,719 | 86,854 | ||||||
Yakult Honsha Co. Ltd. | 1,747 | 86,371 | ||||||
Yamada Holdings Co. Ltd. | 17,446 | 83,306 | ||||||
Yamaha Corp. | 1,614 | 89,789 | ||||||
Yamaha Motor Co. Ltd. | 3,942 | 85,759 | ||||||
Yamato Holdings Co. Ltd. | 3,277 | 86,141 | ||||||
Yaskawa Electric Corp. | 1,637 | 81,700 | ||||||
|
| |||||||
15,441,644 | ||||||||
Jordan 0.2% | ||||||||
Hikma Pharmaceuticals PLC | 2,723 | 84,827 | ||||||
Luxembourg 0.2% | ||||||||
SES SA (Class A Stock) | 10,296 | 82,188 | ||||||
Netherlands 1.7% | ||||||||
Akzo Nobel NV | 873 | 90,122 | ||||||
Koninklijke Ahold Delhaize NV | 3,255 | 85,773 | ||||||
Koninklijke KPN NV | 26,209 | 85,634 | ||||||
Koninklijke Philips NV* | 1,715 | 93,022 | ||||||
NN Group NV | 1,895 | 87,341 | ||||||
QIAGEN NV* | 1,491 | 73,757 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Netherlands (cont'd.) | ||||||||
Randstad NV* | 1,361 | $ | 90,875 | |||||
Wolters Kluwer NV | 1,069 | 84,714 | ||||||
|
| |||||||
691,238 | ||||||||
Norway 0.7% | ||||||||
Equinor ASA | 4,936 | 92,935 | ||||||
Orkla ASA | 9,620 | 88,604 | ||||||
Yara International ASA | 1,809 | 86,918 | ||||||
|
| |||||||
268,457 | ||||||||
Portugal 0.2% | ||||||||
Jeronimo Martins SGPS SA | 5,631 | 87,304 | ||||||
Singapore 2.3% | ||||||||
CapitaLand Ltd. | 37,255 | 88,849 | ||||||
DBS Group Holdings Ltd. | 4,971 | 99,316 | ||||||
Genting Singapore Ltd. | 151,804 | 97,339 | ||||||
Mapletree Logistics Trust | 61,868 | 85,838 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 11,527 | 95,006 | ||||||
Singapore Technologies Engineering Ltd. | 28,791 | 81,187 | ||||||
United Overseas Bank Ltd. | 4,999 | 92,527 | ||||||
UOL Group Ltd. | 14,788 | 81,958 | ||||||
Venture Corp. Ltd. | 5,918 | 85,215 | ||||||
Wilmar International Ltd. | 21,862 | 86,569 | ||||||
|
| |||||||
893,804 | ||||||||
Spain 2.0% | ||||||||
ACS Actividades de Construccion y Servicios SA | 2,736 | 83,650 | ||||||
CaixaBank SA | 32,097 | 93,215 | ||||||
Enagas SA | 4,327 | 90,658 | ||||||
Endesa SA | 3,431 | 85,070 | ||||||
Grifols SA | 3,311 | 83,174 | ||||||
Iberdrola SA | 7,010 | 88,174 | ||||||
Industria de Diseno Textil SA | 2,901 | 95,591 | ||||||
Red Electrica Corp. SA | 5,031 | 84,163 | ||||||
Repsol SA | 7,932 | 99,675 | ||||||
|
| |||||||
803,370 | ||||||||
Sweden 6.3% | ||||||||
Alfa Laval AB* | 3,151 | 97,509 | ||||||
Assa Abloy AB (Class B Stock) | 3,533 | 88,577 |
See Notes to Financial Statements.
98 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Sweden (cont'd.) | ||||||||
Atlas Copco AB, | ||||||||
(Class A Stock) | 1,596 | $ | 91,123 | |||||
(Class B Stock) | 1,825 | 88,485 | ||||||
Boliden AB | 2,405 | 95,273 | ||||||
Electrolux AB (Class B Stock) | 3,643 | 86,050 | ||||||
Epiroc AB, | ||||||||
(Class A Stock) | 4,326 | 91,808 | ||||||
(Class B Stock) | 4,768 | 93,848 | ||||||
Essity AB (Class B Stock) | 2,855 | 85,813 | ||||||
Hexagon AB (Class B Stock) | 987 | 82,243 | ||||||
Husqvarna AB (Class B Stock) | 7,108 | 86,957 | ||||||
ICA Gruppen AB | 1,812 | 86,030 | ||||||
Industrivarden AB, | ||||||||
(Class A Stock)* | 2,617 | 92,978 | ||||||
(Class C Stock)* | 2,743 | 90,601 | ||||||
Investor AB (Class B Stock) | 1,148 | 84,945 | ||||||
L E Lundbergforetagen AB (Class B Stock)* | 1,744 | 86,788 | ||||||
Nibe Industrier AB (Class B Stock) | 2,588 | 81,313 | ||||||
Sandvik AB* | 3,573 | 95,927 | ||||||
Securitas AB (Class B Stock) | 6,022 | 92,321 | ||||||
Skandinaviska Enskilda Banken AB (Class A Stock) | 7,816 | 89,954 | ||||||
Skanska AB (Class B Stock) | 3,474 | 84,259 | ||||||
SKF AB (Class B Stock) | 3,472 | 94,613 | ||||||
Svenska Handelsbanken AB (Class A Stock)* | 8,757 | 92,321 | ||||||
Swedish Match AB | 1,240 | 89,168 | ||||||
Tele2 AB (Class B Stock) | 6,899 | 87,056 | ||||||
Telefonaktiebolaget LM Ericsson (Class B Stock) | 6,820 | 85,130 | ||||||
Telia Co. AB | 21,421 | 86,532 | ||||||
Volvo AB (Class B Stock)* | 3,798 | 97,290 | ||||||
|
| |||||||
2,504,912 | ||||||||
Switzerland 5.7% | ||||||||
ABB Ltd. | 2,844 | 81,664 | ||||||
Adecco Group AG | 1,341 | 84,147 | ||||||
Baloise Holding AG | 522 | 91,184 | ||||||
Cie Financiere Richemont SA | 925 | 89,058 | ||||||
Coca-Cola HBC AG | 2,835 | 88,395 | ||||||
Credit Suisse Group AG | 6,592 | 95,114 | ||||||
Geberit AG | 147 | 86,650 | ||||||
Kuehne + Nagel International AG | 384 | 91,056 | ||||||
LafargeHolcim Ltd.* | 1,713 | 94,458 | ||||||
Logitech International SA | 790 | 84,259 |
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, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Switzerland (cont'd.) | ||||||||
Nestle SA | 808 | $ | 84,384 | |||||
Novartis AG | 1,003 | 86,214 | ||||||
Roche Holding AG | 263 | 86,144 | ||||||
Schindler Holding AG, | ||||||||
(Ordinary Shares) | 333 | 88,663 | ||||||
(Participation Certificates) | 329 | 89,768 | ||||||
SGS SA | 28 | 79,877 | ||||||
Sonova Holding AG* | 310 | 79,336 | ||||||
STMicroelectronics NV | 2,384 | 91,959 | ||||||
Straumann Holding AG | 72 | 86,987 | ||||||
Swatch Group AG (The), | ||||||||
(Bearer Shares) | 314 | 93,615 | ||||||
(Ordinary Shares) | 1,644 | 94,341 | ||||||
Swiss Life Holding AG | 180 | 89,500 | ||||||
Swiss Prime Site AG | 920 | 86,068 | ||||||
Swisscom AG | 173 | 86,819 | ||||||
UBS Group AG | 5,917 | 91,716 | ||||||
Zurich Insurance Group AG | 216 | 88,214 | ||||||
|
| |||||||
2,289,590 | ||||||||
United Kingdom 7.2% | ||||||||
Ashtead Group PLC | 1,682 | 90,922 | ||||||
AstraZeneca PLC | 877 | 84,856 | ||||||
Auto Trader Group PLC, 144A* | 10,317 | 79,084 | ||||||
British American Tobacco PLC | 2,467 | 85,427 | ||||||
British Land Co. PLC (The) | 13,867 | 94,588 | ||||||
BT Group PLC (Class A Stock)* | 51,165 | 88,070 | ||||||
Bunzl PLC | 2,819 | 87,857 | ||||||
Burberry Group PLC* | 3,502 | 88,578 | ||||||
Coca-Cola European Partners PLC | 1,689 | 86,055 | ||||||
Evraz PLC | 12,310 | 97,928 | ||||||
Ferguson PLC | 792 | 93,040 | ||||||
GlaxoSmithKline PLC | 5,103 | 84,660 | ||||||
Imperial Brands PLC | 4,216 | 78,297 | ||||||
Intertek Group PLC | 1,107 | 82,604 | ||||||
J Sainsbury PLC | 30,749 | 96,903 | ||||||
JD Sports Fashion PLC* | 7,376 | 85,334 | ||||||
Kingfisher PLC* | 23,655 | 87,466 | ||||||
Melrose Industries PLC* | 38,009 | 87,851 | ||||||
Mondi PLC | 3,826 | 91,922 | ||||||
National Grid PLC | 7,534 | 84,643 | ||||||
RELX PLC | 3,559 | 83,921 |
See Notes to Financial Statements.
100 |
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
United Kingdom (cont'd.) | ||||||||
Rio Tinto PLC | 1,044 | $ | 89,990 | |||||
RSA Insurance Group PLC | 9,634 | 90,653 | ||||||
Sage Group PLC (The) | 10,927 | 85,038 | ||||||
Schroders PLC | 1,835 | 89,555 | ||||||
Segro PLC | 6,823 | 86,484 | ||||||
Severn Trent PLC | 2,791 | 85,156 | ||||||
Smiths Group PLC | 4,063 | 82,871 | ||||||
Spirax-Sarco Engineering PLC | 543 | 81,022 | ||||||
Standard Life Aberdeen PLC | 20,169 | 87,333 | ||||||
Tesco PLC | 27,413 | 85,855 | ||||||
Vodafone Group PLC | 52,837 | 89,822 | ||||||
Wm Morrison Supermarkets PLC | 37,548 | 89,375 | ||||||
|
| |||||||
2,883,160 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 39,094,510 | |||||||
|
| |||||||
PREFERRED STOCKS 1.3% | ||||||||
Germany 1.1% | ||||||||
Bayerische Motoren Werke AG | 1,272 | 86,022 | ||||||
FUCHS PETROLUB SE | 1,558 | 85,230 | ||||||
Henkel AG & Co. KGaA | 876 | 86,225 | ||||||
Porsche Automobil Holding SE | 1,245 | 99,713 | ||||||
Volkswagen AG | 423 | 88,304 | ||||||
|
| |||||||
445,494 | ||||||||
Italy 0.2% | ||||||||
Telecom Italia SpA | 173,716 | 93,103 | ||||||
|
| |||||||
TOTAL PREFERRED STOCKS | 538,597 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 39,633,107 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS 0.7% | ||||||||
AFFILIATED MUTUAL FUND 0.2% | ||||||||
PGIM Institutional Money Market Fund | 86,028 | 85,985 | ||||||
|
|
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, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
TIME DEPOSIT 0.5% | ||||||||||||||||
Royal Bank of Canada (Canada) | 0.005 | % | 03/01/21 | 181 | $ | 181,111 | ||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS | 267,096 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 99.9% | 39,900,203 | |||||||||||||||
Other assets in excess of liabilities 0.1% | 39,474 | |||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% |
| $ | 39,939,677 | |||||||||||||
|
|
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.
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $83,338; cash collateral of $85,984 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Fund may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
* | 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.
See Notes to Financial Statements.
102 |
The following is a summary of the inputs used as of February 28, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Common Stocks | ||||||||||||
Australia | $ | 2,160,409 | $ | — | $ | — | ||||||
Austria | 272,140 | — | — | |||||||||
Belgium | 437,992 | — | — | |||||||||
Denmark | 787,301 | — | — | |||||||||
Finland | 615,948 | — | — | |||||||||
France | 2,906,453 | — | — | |||||||||
Germany | 2,636,179 | — | — | |||||||||
Hong Kong | 1,770,294 | — | — | |||||||||
Ireland | 253,788 | — | — | |||||||||
Israel | 260,642 | — | — | |||||||||
Italy | 962,870 | — | — | |||||||||
Japan | 15,441,644 | — | — | |||||||||
Jordan | 84,827 | — | — | |||||||||
Luxembourg | 82,188 | — | — | |||||||||
Netherlands | 691,238 | — | — | |||||||||
Norway | 268,457 | — | — | |||||||||
Portugal | 87,304 | — | — | |||||||||
Singapore | 893,804 | — | — | |||||||||
Spain | 803,370 | — | — | |||||||||
Sweden | 2,504,912 | — | — | |||||||||
Switzerland | 2,289,590 | — | — | |||||||||
United Kingdom | 2,883,160 | — | — | |||||||||
Preferred Stocks | ||||||||||||
Germany | 445,494 | — | — | |||||||||
Italy | 93,103 | — | — | |||||||||
Affiliated Mutual Fund | 85,985 | — | — | |||||||||
Time Deposit | — | 181,111 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 39,719,092 | $ | 181,111 | $ | — | ||||||
|
|
|
|
|
|
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, 2021
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, 2021 were as follows:
Machinery | 7.0 | % | ||
Banks | 5.4 | |||
Real Estate Management & Development | 4.7 | |||
Chemicals | 4.7 | |||
Pharmaceuticals | 4.6 | |||
Equity Real Estate Investment Trusts (REITs) | 3.6 | |||
Diversified Telecommunication Services | 3.5 | |||
Food & Staples Retailing | 3.5 | |||
Automobiles | 2.8 | |||
Food Products | 2.8 | |||
Electric Utilities | 2.6 | |||
Health Care Equipment & Supplies | 2.3 | |||
Trading Companies & Distributors | 2.2 | |||
Insurance | 2.2 | |||
Professional Services | 2.2 | |||
Metals & Mining | 2.1 | |||
Electronic Equipment, Instruments & Components | 2.1 | |||
Oil, Gas & Consumable Fuels | 2.0 | |||
Auto Components | 2.0 | |||
Building Products | 1.9 | |||
IT Services | 1.9 | |||
Industrial Conglomerates | 1.8 | |||
Beverages | 1.7 | |||
Construction & Engineering | 1.7 | |||
Household Durables | 1.7 | |||
Textiles, Apparel & Luxury Goods | 1.6 | |||
Diversified Financial Services | 1.6 | |||
Capital Markets | 1.6 | |||
Specialty Retail | 1.5 | |||
Health Care Providers & Services | 1.3 | |||
Gas Utilities | 1.1 | |||
Technology Hardware, Storage & Peripherals | 1.1 | |||
Commercial Services & Supplies | 1.1 | |||
Electrical Equipment | 1.1 | % | ||
Household Products | 1.1 | |||
Marine | 1.0 | |||
Construction Materials | 0.9 | |||
Semiconductors & Semiconductor Equipment | 0.9 | |||
Wireless Telecommunication Services | 0.9 | |||
Tobacco | 0.9 | |||
Interactive Media & Services | 0.8 | |||
Hotels, Restaurants & Leisure | 0.7 | |||
Media | 0.7 | |||
Software | 0.6 | |||
Leisure Products | 0.6 | |||
Multiline Retail | 0.6 | |||
Multi-Utilities | 0.6 | |||
Biotechnology | 0.6 | |||
Paper & Forest Products | 0.5 | |||
Time Deposit | 0.5 | |||
Road & Rail | 0.4 | |||
Aerospace & Defense | 0.4 | |||
Air Freight & Logistics | 0.4 | |||
Entertainment | 0.4 | |||
Life Sciences Tools & Services | 0.4 | |||
Personal Products | 0.2 | |||
Affiliated Mutual Fund (0.2% represents investments purchased with collateral from securities on loan) | 0.2 | |||
Containers & Packaging | 0.2 | |||
Water Utilities | 0.2 | |||
Communications Equipment | 0.2 | |||
|
| |||
99.9 | ||||
Other assets in excess of liabilities | 0.1 | |||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
104 |
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund entered into financial instruments/transactions during the period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions, where the legal right to set-off exists, is presented in the summary below:
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||||||||
Securities on Loan | $ | 83,338 | $ | (83,338 | ) | $ | — | |||||
|
|
|
|
|
|
(1) | Collateral amount disclosed by the Fund is limited to the market value of the financial instruments/transactions. |
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, 2021
Assets | ||||
Investments at value, including securities on loan of $83,338: | ||||
Unaffiliated investments (cost $35,800,548) | $ | 39,814,218 | ||
Affiliated investments (cost $85,993) | 85,985 | |||
Foreign currency, at value (cost $123,297) | 121,978 | |||
Interest and dividends receivable | 101,007 | |||
|
| |||
Total Assets | 40,123,188 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 88,073 | |||
Payable to broker for collateral for securities on loan | 85,984 | |||
Management fee payable | 9,079 | |||
Other liabilities | 375 | |||
|
| |||
Total Liabilities | 183,511 | |||
|
| |||
Net Assets | $ | 39,939,677 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 700 | ||
Paid-in capital in excess of par | 34,905,030 | |||
Total distributable earnings (loss) | 5,033,947 | |||
|
| |||
Net assets, February 28, 2021 | $ | 39,939,677 | ||
|
| |||
Net asset value, offering price and redemption price per share, | $ | 57.06 | ||
|
|
See Notes to Financial Statements.
106 |
PGIM QMA Strategic Alpha International Equity ETF
Statement of Operations (unaudited)
Six Months Ended February 28, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 10 | ||
Unaffiliated dividend income (net of $44,637 foreign withholding tax) | 358,211 | |||
Income from securities lending, net (including affiliated income of $321) | 2,440 | |||
|
| |||
Total income | 360,661 | |||
|
| |||
Expenses | ||||
Management fee | 54,787 | |||
Miscellaneous expenses | 138 | |||
|
| |||
Total expenses | 54,925 | |||
|
| |||
Net investment income (loss) | 305,736 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investments and Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(137)) | 3,013,850 | |||
Foreign currency transactions | 14,324 | |||
|
| |||
3,028,174 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $33) | 1,326,643 | |||
Foreign currencies | (9,326 | ) | ||
|
| |||
1,317,317 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 4,345,491 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 4,651,227 | ||
|
|
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 107 |
PGIM QMA Strategic Alpha International Equity ETF
Statements of Changes in Net Assets
Six Months Ended February 28, 2021 (unaudited) | Year August 31, 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 305,736 | $ | 764,674 | ||||
Net realized gain (loss) on investments | 3,028,174 | (1,502,255 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 1,317,317 | 2,813,063 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 4,651,227 | 2,075,482 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | (572,789 | ) | (901,215 | ) | ||||
|
|
|
| |||||
Total increase (decrease) | 4,078,438 | 1,174,267 | ||||||
Net Assets: | ||||||||
Beginning of period | 35,861,239 | 34,686,972 | ||||||
|
|
|
| |||||
End of period | $ | 39,939,677 | $ | 35,861,239 | ||||
|
|
|
|
See Notes to Financial Statements.
108 |
Notes to Financial Statements (unaudited)
1. Organization
PGIM ETF Trust (the “Trust”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (“1940 Act”). The Trust was organized as a Delaware statutory trust on October 23, 2017 and currently consists of six separate series: PGIM Ultra Short Bond ETF, PGIM Active High Yield Bond ETF, PGIM QMA Strategic Alpha Large-Cap Core ETF, PGIM QMA Strategic Alpha Small-Cap Growth ETF, PGIM QMA Strategic Alpha Small-Cap Value ETF and PGIM QMA Strategic Alpha International Equity ETF. Each series operates as an exchange-traded fund.
These financial statements relate only to the following Funds: PGIM QMA Strategic Alpha Large- Cap Core ETF, PGIM QMA Strategic Alpha Small-Cap Growth ETF, PGIM QMA Strategic Alpha Small-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 (each, a “Fund” and collectively, the “Funds”). The Funds are classified as diversified funds under the 1940 Act.
The investment objective of each Fund is to seek long-term growth of capital.
2. 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 is a summary of significant accounting policies followed by the Funds in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Funds consistently follow such policies in the preparation of their financial statements.
Securities Valuation: The Funds hold securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Funds’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. 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 each 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
PGIM QMA Strategic Alpha ETFs | 109 |
Notes to Financial Statements (unaudited) (continued)
representative of fair value. 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. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
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 Fund 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 FASB ASC Topic 820—Fair Value Measurements and Disclosures.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, 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 in open-end funds (other than exchange-traded 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. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
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
110 |
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.
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 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 forward currency transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on each 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).
Rights: The Funds hold rights acquired either through a direct purchase or pursuant to corporate actions. Rights entitle the holder to buy a proportionate amount of common stock, or such other security that the issuer may specify, at a specific price and time through the expiration dates. Such rights are held as long positions by the Funds until exercised, sold or expired. Rights are valued at fair value in accordance with the Board approved fair valuation procedures.
Master Netting Arrangements: The Trust, on behalf of the Funds, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a
PGIM QMA Strategic Alpha ETFs | 111 |
Notes to Financial Statements (unaudited) (continued)
portion of the Fund. A master netting arrangement between a Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Funds lend their portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral.
The Funds recognize income, net of any rebate and securities lending agent fees, for lending their securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based upon the nature of the payment on the Statement of Operations. The Funds also continue to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
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 the ex-date, or for certain foreign securities, when a Fund becomes aware of such dividends.
112 |
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 continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of their 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 the ex-date. Permanent GAAP/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-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.
3. Agreements
Pursuant to a management agreement with the Trust on behalf of the Funds (the Management Agreement), PGIM Investments manages each Fund’s investment operations and administers its business affairs. PGIM Investments is also responsible for supervising each Fund’s subadviser.
Pursuant to the management agreement relating to each Fund, there is a unitary fee structure for the funds whereby PGIM Investments is responsible for substantially all expenses of each Fund, except taxes, brokerage expenses, interest expenses, distribution fees or expenses, expenses incident to shareholder meetings and extraordinary expenses. Each Fund may also pay for any costs or expenses of investing in other funds. For more information of the unitary management fee structure please refer to the Funds’ Statement of Additional Information.
The unitary fee paid to the Manager is accrued daily and payable monthly, at an annual rate of each Fund’s average daily net assets specified below. The Manager has contractually agreed, beginning from each Fund’s inception date, to waive any management fees it receives from the Funds in an amount equal to the subadvisory fees paid by the Funds to the PGIM Institutional Money Market Fund due to the Funds’ investment of its excess overnight cash in the PGIM Institutional Money Market Fund. This
PGIM QMA Strategic Alpha ETFs | 113 |
Notes to Financial Statements (unaudited) (continued)
waiver will remain in effect for as long as the Funds remain invested or intend to invest in the PGIM Institutional Money Market Fund.
Fund | Unitary fee rate | |||
PGIM QMA Strategic Alpha Large-Cap Core ETF | 0.17 | % | ||
PGIM QMA Strategic Alpha Small-Cap Growth ETF | 0.29 | % | ||
PGIM QMA Strategic Alpha Small-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”) (the “subadviser”). The Manager pays for the services of the subadviser.
Brown Brothers Harriman & Co. (“BBH”) serves as the Custodian, Transfer Agent, Administrative Agent and Securities Lending Agent for the Trust. The Manager is responsible for compensating BBH under the Custodian and Administrative and Transfer Agency Agreements. As securities lending agent, BBH is responsible for marketing to approved borrowers available securities from the Funds’ portfolio. BBH receives as compensation for its services a portion of the amount earned by the Funds for lending securities.
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 Agreement”) between the Trust and the Distributor. The Distributor is a subsidiary of 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 Investments, PGIM, Inc., PIMS and QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
Each Fund may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
114 |
The Funds may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-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. For the period ended February 28, 2021, no 17a-7 transactions were entered into by the Funds.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments, U.S. Government securities and in-kind transactions) for the reporting period ended February 28, 2021, were as follows:
Fund | Cost of Purchases | Proceeds from Sales | ||||||
PGIM QMA Strategic Alpha Large-Cap Core ETF | $ | 5,551,478 | $ | 5,599,311 | ||||
PGIM QMA Strategic Alpha Small-Cap Growth ETF | $ | 6,400,762 | $ | 6,341,047 | ||||
PGIM QMA Strategic Alpha Small-Cap Value ETF | $ | 5,052,197 | $ | 5,038,007 | ||||
PGIM QMA Strategic Alpha International Equity ETF | $ | 19,957,174 | $ | 19,687,808 |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting year ended February 28, 2021, is presented as follows:
PGIM QMA Strategic Alpha Large-Cap Core ETF
Value Beginning | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||
Short-Term Investments—Affiliated Mutual Funds: |
| |||||||||||||||||||||||||||
PGIM Institutional Money Market Fund(1)(b)(wa) |
| |||||||||||||||||||||||||||
$834,998 | $ | 3,466,005 | $ | 4,224,123 | $ | 57 | $ | (105 | ) | $ | 76,832 | �� | 76,871 | $ | 365 | (2) |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Value Beginning | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||
Short-Term Investments—Affiliated Mutual Funds: |
| |||||||||||||||||||||||||||
PGIM Institutional Money Market Fund(1)(b)(wa) |
| |||||||||||||||||||||||||||
$908,543 | $ | 2,306,680 | $ | 2,893,750 | $ | 13 | $ | (151 | ) | $ | 321,335 | 321,496 | $ | 533 | (2) |
PGIM QMA Strategic Alpha ETFs | 115 |
Notes to Financial Statements (unaudited) (continued)
PGIM QMA Strategic Alpha Small-Cap Value ETF
Value Beginning | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||
Short-Term Investments—Affiliated Mutual Funds: |
| |||||||||||||||||||||||||||
PGIM Institutional Money Market Fund(1)(b)(wa) |
| |||||||||||||||||||||||||||
$438,488 | $ | 1,357,819 | $ | 1,565,969 | $ | 6 | $ | (91 | ) | $ | 230,253 | 230,368 | $ | 294 | (2) |
PGIM QMA Strategic Alpha International Equity ETF
Value Beginning | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||
Short-Term Investments—Affiliated Mutual Funds: |
| |||||||||||||||||||||||||||
PGIM Institutional Money Market Fund(1)(b)(wa) |
| |||||||||||||||||||||||||||
$417,228 | $ | 2,532,666 | $ | 2,863,805 | $ | 33 | $ | (137 | ) | $ | 85,985 | 86,028 | $ | 321 | (2) |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(wa) | PGIM Investments LLC, the manager of the Fund, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
(b) | Represents security purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
6. Tax Information
The United States federal income tax basis of the Funds’ investments and the net unrealized appreciation as of February 28, 2021 were as follows:
PGIM QMA Strategic Alpha Large-Cap Core ETF
Tax Basis | $ | 10,459,976 | ||
|
| |||
Gross Unrealized Appreciation | 2,237,034 | |||
Gross Unrealized Depreciation | (195,504 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 2,041,530 | ||
|
|
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Tax Basis | $ | 11,367,433 | ||
|
| |||
Gross Unrealized Appreciation | 3,162,903 | |||
Gross Unrealized Depreciation | (371,973 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 2,790,930 | ||
|
|
116 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Tax Basis | $ | 9,837,846 | ||
|
| |||
Gross Unrealized Appreciation | 2,516,285 | |||
Gross Unrealized Depreciation | (240,510 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 2,275,775 | ||
|
|
PGIM QMA Strategic Alpha International Equity ETF
Tax Basis | $ | 35,885,435 | ||
|
| |||
Gross Unrealized Appreciation | 5,180,197 | |||
Gross Unrealized Depreciation | (1,165,429 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 4,014,768 | ||
|
|
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the following Funds had a capital loss carryforward as of August 31, 2020 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.
Capital Loss Carryforward | ||||
PGIM QMA Strategic Alpha Large-Cap Core ETF | $ | 702,000 | ||
PGIM QMA Strategic Alpha Small-Cap Growth ETF | 763,000 | |||
PGIM QMA Strategic Alpha Small-Cap Value ETF | 1,287,000 | |||
PGIM QMA Strategic Alpha International Equity ETF | 1,842,000 |
The Manager has analyzed the Funds’ 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 Funds’ financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, each Funds’ U.S. federal and state tax returns for each of the two fiscal years up to the most recent fiscal year ended August 31, 2020 are subject to such review.
7. 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 aggregations of a specified number of shares called a “Creation Unit”. An Authorized Participant is a member or participant of a clearing agency registered with the
PGIM QMA Strategic Alpha ETFs | 117 |
Notes to Financial Statements (unaudited) (continued)
SEC, which has a written agreement with the Funds or one of their service providers that allows the Authorized Participant to place orders for the purchase and redemption of Creation Units.
A creation transaction, which is subject to acceptance by the Distributor and each Fund, generally takes place when an Authorized Participant deposits into each Fund a designated portfolio of securities, assets or other positions (a “creation basket”, and an amount of cash (including any cash representing the value of substituted securities, assets or other positions), if any, which together approximate the holdings of each Fund in exchange for a specified number of Creation Units. Similarly, shares can be redeemed only in Creation Units, generally for a designated portfolio of securities, assets or other propositions (the “redemption basket”) held by each Fund and an amount of cash (including any portion of such securities for which cash may be substituted). The Funds may, in certain circumstances, offer Creation Units partially or solely for cash. Except when aggregated in Creation Units, shares are not redeemable by the Funds. Creation and redemption baskets may differ and the Funds may accept “custom baskets”. A Creation Unit of PGIM QMA Strategic Alpha Large-Cap Core ETF, PGIM QMA Strategic Alpha Small-Cap Growth ETF, PGIM QMA Strategic Alpha Small-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.
Authorized Participants generally are required to pay a fixed creation transaction fee and/or a fixed redemption transaction fee, as applicable, for each transaction in a Creation Unit regardless of the number of Creation Units created or redeemed on that day. The Funds may adjust the transaction fee from time to time. An additional charge or a variable charge may be applied to certain creation and redemption transactions, including non-standard orders and whole or partial cash purchases or redemptions when deemed appropriate.
The Trust is authorized to issue an unlimited number of shares of beneficial interest, $0.001 par value per share.
118 |
As of February 28, 2021, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Funds as follows:
Fund | Number of Shares | Percentage of Outstanding Shares | ||||||
PGIM QMA Strategic Alpha Large- Cap Core ETF | 192,174 | 96.1 | % | |||||
PGIM QMA Strategic Alpha Small- Cap Growth ETF | 195,010 | 97.5 | % | |||||
PGIM QMA Strategic Alpha Small- Cap Value ETF | 189,981 | 95.0 | % | |||||
PGIM QMA Strategic Alpha International Equity ETF | 695,000 | 99.3 | % |
At reporting period end, the number of shareholders holding greater than 5% of the Funds are as follows:
Affiliated | Unaffiliated | |||||||
Fund | Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | ||||
PGIM QMA Strategic Alpha Large-Cap Core ETF | 1 | 96.0% | 0 | 0.0% | ||||
PGIM QMA Strategic Alpha Small-Cap Growth ETF | 1 | 97.5% | 0 | 0.0% | ||||
PGIM QMA Strategic Alpha Small-Cap Value ETF | 1 | 95.0% | 0 | 0.0% | ||||
PGIM QMA Strategic Alpha International Equity ETF | 3 | 99.3% | 0 | 0.0% |
Transactions in shares of beneficial interest were as follows:
PGIM QMA Strategic Alpha Large-Cap Core ETF
Reporting period ended February 28, 2021:
Shares | Amount | |||||||
Shares sold | — | $ | — | |||||
Shares purchased | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | — | $ | — | |||||
|
|
|
|
Reporting period ended August 31, 2020:
Shares | Amount | |||||||
Shares sold | — | $ | — | |||||
Shares purchased | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | — | $ | — | |||||
|
|
|
|
PGIM QMA Strategic Alpha ETFs | 119 |
Notes to Financial Statements (unaudited) (continued)
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Reporting period ended February 28, 2021:
Shares | Amount | |||||||
Shares sold | — | $ | — | |||||
Shares purchased | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | — | $ | — | |||||
|
|
|
|
Reporting period ended August 31, 2020:
Shares | Amount | |||||||
Shares sold | — | $ | — | |||||
Shares purchased | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | — | $ | — | |||||
|
|
|
|
PGIM QMA Strategic Alpha Small-Cap Value ETF
Reporting period ended February 28, 2021:
Shares | Amount | |||||||
Shares sold | — | $ | — | |||||
Shares purchased | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | — | $ | — | |||||
|
|
|
|
Reporting period ended August 31, 2020:
Shares | Amount | |||||||
Shares sold | — | $ | — | |||||
Shares purchased | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | — | $ | — | |||||
|
|
|
|
PGIM QMA Strategic Alpha International Equity ETF
Reporting period ended February 28, 2021:
Shares | Amount | |||||||
Shares sold | — | $ | — | |||||
Shares purchased | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | — | $ | — | |||||
|
|
|
|
120 |
Reporting period ended August 31, 2020:
Shares | Amount | |||||||
Shares sold | — | $ | — | |||||
Shares purchased | — | — | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | — | $ | — | |||||
|
|
|
|
Each Fund may make payment for Fund shares redeemed and contributed wholly or in part by distributing portfolio securities to shareholders. For the period ended February 28, 2021, the Funds had no subscriptions in-kind and redemptions in-kind.
8. Borrowings
The Trust, on behalf of the Funds, along with other affiliated registered investment companies (the “Participating 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 table below provides details of the current SCA in effect at the reporting period-end as well as the prior SCA.
Current SCA | Prior SCA | |||
Term of Commitment | 10/2/2020 – 9/30/2021 | 10/3/2019 – 10/1/2020 | ||
Total Commitment | $1,200,000,000 | $1,222,500,000* | ||
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | 0.15% | ||
Annualized Interest Rate on Borrowings | 1.30% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent | 1.20% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
* | Effective March 31, 2020, the SCA’s total commitment was increased from $900,000,000 to $1,162,500,000 and subsequently, effective April 7, 2020 was increased to $1,222,500,000. |
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 Participating Funds in the SCA equitably.
The Funds did not utilize the SCA during the reporting period ended February 28, 2021.
PGIM QMA Strategic Alpha ETFs | 121 |
Notes to Financial Statements (unaudited) (continued)
9. Risks of Investing in the Funds
The Funds’ risks include, but are not limited to, some or all of the risks discussed below. For further information on each Fund’s risks, please refer to the Funds’ Prospectus and Statement of Additional Information.
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.
Concentration Risk: To the extent that the Funds are concentrated in the securities of companies, a particular market, industry, group of industries, sector or asset class, country, region or group of countries, the Funds may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more susceptible to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector or asset class, country, region or group of countries.
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 Funds invest could go down. 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
122 |
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.
Foreign Securities Risk: Each Fund’s investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk. The securities of such issuers may trade in markets that are less liquid, less regulated and more volatile than U.S. markets. Foreign countries in which the Funds may invest may have markets that are less liquid, less regulated and more volatile than U.S. 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. Lack of information may also affect the value of these securities.
Growth Style Risk: The Funds’ growth style may subject the Funds to above-average fluctuations as a result of seeking higher than average capital growth. Historically, growth stocks have performed best during later stages of economic expansion and value stocks have performed best during periods of economic recovery. Since the Funds follows a growth investment style, there is the risk that the growth investment style may be out of favor for a period of time. At times when the style is out of favor, the Funds may underperform the market in general, its benchmark and other mutual funds.
Large Capitalization Company Risk: Companies with large market capitalizations go in and out of favor based on market and economic conditions. Larger companies tend to be less volatile than companies with smaller market capitalizations. In exchange for this potentially lower risk, the Funds’ value may not rise or fall as much as the value of funds that emphasize companies with smaller market capitalizations.
Market 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 your investment in the Funds will decline.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally.
The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Funds’ investments and net asset value and have led and may continue to lead to increased market volatility and the potential for
PGIM QMA Strategic Alpha ETFs | 123 |
Notes to Financial Statements (unaudited) (continued)
illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Funds invest. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
Real Estate Investment Trust (REIT) Risk: Investing in 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 REITs, while mortgage REITs may be affected by the quality of any credit extended. 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. REITs may be more volatile and/or more illiquid than other types of equity securities. REITs (especially mortgage REITs) are subject to interest rate risks. REITs may incur significant amounts of leverage. Each Fund will indirectly bear a portion of the expenses, including management fees, paid by each REIT in which it invests, in addition to the expenses of the Fund.
REITs must also meet certain requirements under the Internal Revenue Code of 1986, as amended (the Code) to avoid entity level tax and be eligible to pass-through certain tax attributes of their income to shareholders. REITs are consequently subject to the risk of failing to meet these requirements for favorable tax treatment and of failing to maintain their exemptions from registration under the Investment Company Act of 1940. REITs are subject to the risks of changes in the Code affecting their tax status.
Because the Funds invest in real estate securities, including REITs, the Funds are subjects to the risks of investing in the real estate industry, such as changes in general and local economic conditions, the supply and demand for real estate and changes in zoning and tax laws. Since the Funds concentrate in the real estate industry, its holdings can vary significantly from broad market indexes. As a result, the Funds’ performance can deviate from the performance of such indexes. Because the Funds invest in stocks, there is the risk that the price of a particular stock owned by the Funds could go down or pay lower-than-expected or no dividends. In addition to an individual stock losing value, the value of the equity markets or of companies comprising the real estate industry could go down.
124 |
Value Style Risk. Since the Funds follow a value investment style, there is the risk that the value style may be out of favor for long periods of time, that the market will not recognize a security’s intrinsic value for a long time or at all, or that a stock judged to be undervalued may actually be appropriately priced or overvalued. Issuers of value stocks may have experienced adverse business developments or may be subject to special risks that have caused the stock to be out of favor. In addition, the Funds’ value investment style may go out of favor with investors, negatively affecting the Funds’ performance. If the Funds’ assessment of market conditions or a company’s value is inaccurate, the Funds could suffer losses or produce poor performance relative to other funds.
10. Recent Regulatory Developments
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule is scheduled to take effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Funds.
PGIM QMA Strategic Alpha ETFs | 125 |
PGIM QMA Strategic Alpha Large-Cap Core ETF
Financial Highlights
Six Months Ended February 28, 2021 (unaudited) | Year Ended August 31, 2020 | October 17, 2018(e) through August 31, 2019 | ||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $54.79 | $51.90 | $50.00 | |||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.46 | 1.03 | 0.89 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 7.75 | 2.90 | 1.67 | |||||||||||||||||
Total from investment operations | 8.21 | 3.93 | 2.56 | |||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||
Dividends from net investment income | (0.79 | ) | (1.04 | ) | (0.66 | ) | ||||||||||||||
Net asset value, end of period | $62.21 | $54.79 | $51.90 | |||||||||||||||||
Total Return(b): | 15.10% | 7.69% | 5.20% | |||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000) | $12,442 | $10,958 | $10,380 | |||||||||||||||||
Average net assets (000) | $11,661 | $10,347 | $11,164 | |||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.17% | (d) | 0.17% | 0.17% | (d) | |||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.17% | (d) | 0.17% | 0.17% | (d) | |||||||||||||||
Net investment income (loss) | 1.61% | (d) | 1.99% | 2.04% | (d) | |||||||||||||||
Portfolio turnover rate(f)(g) | 50% | 82% | 92% |
(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. |
(g) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions, if any. |
See Notes to Financial Statements.
126 |
PGIM QMA Strategic Alpha Small-Cap Growth ETF
Financial Highlights
Six Months Ended February 28, 2021 (unaudited) | Year Ended August 31, 2020 | November 13, 2018(e) through August 31, 2019 | ||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $51.18 | $47.97 | $50.00 | |||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.14 | 0.36 | 0.39 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 18.32 | 3.28 | (2.13 | ) | ||||||||||||||||
Total from investment operations | 18.46 | 3.64 | (1.74 | ) | ||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||
Dividends from net investment income | (0.44 | ) | (0.43 | ) | (0.29 | ) | ||||||||||||||
Net asset value, end of period | $69.20 | $51.18 | $47.97 | |||||||||||||||||
Total Return(b): | 36.22% | 7.64% | (3.50)% | |||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000) | $13,841 | $10,236 | $9,593 | |||||||||||||||||
Average net assets (000) | $11,775 | $9,621 | $10,819 | |||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.29% | (d) | 0.29% | 0.29% | (d) | |||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.29% | (d) | 0.29% | 0.29% | (d) | |||||||||||||||
Net investment income (loss) | 0.47% | (d) | 0.76% | 0.98% | (d) | |||||||||||||||
Portfolio turnover rate(f)(g) | 55% | 123% | 78% |
(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. |
(g) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions, if any. |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 127 |
PGIM QMA Strategic Alpha Small-Cap Value ETF
Financial Highlights
Six Months Ended February 28, 2021 (unaudited) | Year Ended August 31, 2020 | November 13, 2018(e) through August 31, 2019 | ||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $41.68 | $46.77 | $50.00 | |||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.38 | 0.71 | 0.72 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 17.97 | (4.40 | ) | (3.41 | ) | |||||||||||||||
Total from investment operations | 18.35 | (3.69 | ) | (2.69 | ) | |||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||
Dividends from net investment income | (0.57 | ) | (0.76 | ) | (0.54 | ) | ||||||||||||||
Distributions from net realized gains | - | (0.64 | ) | - | ||||||||||||||||
Total Dividends and Distributions | (0.57 | ) | (1.40 | ) | (0.54 | ) | ||||||||||||||
Net asset value, end of period | $59.46 | $41.68 | $46.77 | |||||||||||||||||
Total Return(b): | 44.37% | (8.28)% | (5.39)% | |||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000) | $11,892 | $8,335 | $9,353 | |||||||||||||||||
Average net assets (000) | $9,797 | $8,876 | $10,627 | |||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.29% | (d) | 0.29% | 0.29% | (d) | |||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.29% | (d) | 0.29% | 0.29% | (d) | |||||||||||||||
Net investment income (loss) | 1.55% | (d) | 1.61% | 1.86% | (d) | |||||||||||||||
Portfolio turnover rate(f)(g) | 53% | 120% | 66% |
(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. |
(g) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions, if any. |
See Notes to Financial Statements.
128 |
PGIM QMA Strategic Alpha International Equity ETF
Financial Highlights
Six Months Ended February 28, 2021 (unaudited) | Year Ended August 31, 2020 | December 4, 2018(e) through August 31, 2019 | ||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $51.23 | $49.55 | $50.00 | |||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.44 | 1.09 | 1.16 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 6.21 | 1.88 | (0.63 | ) | ||||||||||||||||
Total from investment operations | 6.65 | 2.97 | 0.53 | |||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||
Dividends from net investment income | (0.82 | ) | (1.29 | ) | (0.98 | ) | ||||||||||||||
Net asset value, end of period | $57.06 | $51.23 | $49.55 | |||||||||||||||||
Total Return(b): | 13.06% | 6.05% | 1.09% | |||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000) | $39,940 | $35,861 | $34,687 | |||||||||||||||||
Average net assets (000) | $38,097 | $34,722 | $27,908 | |||||||||||||||||
Ratios to average net assets(c): | ||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.29% | (d) | 0.29% | 0.29% | (d) | |||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.29% | (d) | 0.29% | 0.29% | (d) | |||||||||||||||
Net investment income (loss) | 1.62% | (d) | 2.20% | 3.12% | (d) | |||||||||||||||
Portfolio turnover rate(f)(g) | 57% | 92% | 63% |
(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. |
(g) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions, if any. |
See Notes to Financial Statements.
PGIM QMA Strategic Alpha ETFs | 129 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Trustees of the Funds 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 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how each Fund voted proxies relating to portfolio securities during the most recent 12-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 • 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 • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Jon Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Patrick McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
SUBADVISER | QMA LLC | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
| ||||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
CUSTODIAN/TRANSFER AGENT | Brown Brothers Harriman & Co. | 50 Post Office Square Boston, MA 02110 | ||
| ||||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
| ||||
FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
|
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 at pgim.com/investments 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 to pgim.com/investments/resource/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 that Trustee at 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 as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
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 – Not applicable.
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 for Closed-End Management Investment Companies – Not applicable.
Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not applicable.
Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.
Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
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 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 – Controls and Procedures - Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not applicable.
Item 13 – Exhibits
(a) (1) | Code of Ethics – Not required, as this is not an annual filing. |
(2) |
(3) | Any written solicitation to purchase securities under Rule 23c-1. – Not applicable. |
(b) |
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 20, 2021 |
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 20, 2021 | |
By: | /s/ Christian J. Kelly | |
Christian J. Kelly | ||
Treasurer and Principal Financial and Accounting Officer | ||
Date: | April 20, 2021 |