PGIM Files Active ETF Focused on Investment-Grade CLOs

PGIM has filed for the PGIM Investment Grade CLO ETF (XCLO), an actively managed strategy that will invest at least 80% of assets in investment-grade CLOs. The portfolio will focus primarily on AA/Aa- and A/A-rated tranches, while allowing exposure across AAA through BBB, with BBB-rated CLOs capped at 10% of investable assets. PGIM will combine top-down macro analysis with bottom-up credit research and quantitative risk tools when selecting securities. The fund may invest in both primary and secondary CLO markets, use derivatives to manage interest-rate, currency and duration exposures, and hold up to 25% in non-U.S.-dollar-denominated instruments.