PGIM Introduces AAA CLO ETF With Extended Duration Strategy

PGIM has launched the PGIM AAA CLO Aggregate Duration ETF (AAAD), an actively managed fund that invests primarily in AAA-rated collateralized loan obligations while targeting an overall duration similar to the broad U.S. bond market. To achieve this, the ETF combines exposure to senior AAA CLO tranches—primarily through the affiliated PGIM AAA CLO ETF—with Treasuries, interest-rate derivatives, and other fixed-income instruments. The strategy is designed to offer the credit quality and income potential of AAA CLOs while providing greater interest-rate sensitivity than traditional short-duration CLO portfolios.