PGIM Launches Two New Securitized Credit ETFs, Including a AAA-Rated CLO ETF With Core-Like Duration Exposure
Launches extend PGIM's fixed income ETF platform into areas of growing investor demand
PGIM, the $1.4 trillion global asset management business of Prudential Financial, Inc.1 ((PRU), has launched a market- differentiated AAA-rated collateralized loan obligation (CLO) exchange-traded fund (ETF) designed to provide core-like duration exposure.2 The fund, named the PGIM AAA CLO Aggregate Duration ETF (AAAD), launched alongside the PGIM Securitized Income ETF (PINC), which also employs a duration overlay.
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"With this launch, we're excited to introduce a strategy that leverages our CLO expertise to provide enhanced yield potential compared to traditional high-quality duration sectors." --Edwin Wilches, Co-Head of Securitized Products, PGIM
"With this launch, we're excited to introduce a strategy that leverages our CLO expertise to provide enhanced yield potential compared to traditional high-quality duration sectors," said Edwin Wilches, co-head of Securitized Products at PGIM.
The PGIM AAA CLO Aggregate Duration ETF (AAAD) invests primarily in U.S. dollar-denominated AAA-rated CLOs either directly or through its investment in the PGIM AAA CLO ETF (PAAA). PAAA is the only Morningstar Medalist Gold-rated product in its Morningstar category and has been among the fastest-growing strategies in the market, accumulating over $10 billion in assets since its inception.3 AAAD expects to use longer-duration fixed income instruments and derivative instruments, such as futures, forwards, options, swaps, and U.S. Treasury futures, in seeking to maintain its target portfolio duration or to extend the overall duration of its portfolio beyond that of its CLO exposure. It is listed on NYSE Arca, Inc. and offered at a 0.19% net expense ratio.
The PGIM Securitized Income ETF (PINC) invests primarily in securitized credit investments and other similar credit instruments, including derivative instruments that provide diversified exposure across the securitized credit landscape. It is listed on the Cboe BZX Exchange, Inc. and is offered at a 0.39% net expense ratio.
Both AAAD and PINC seek to maximize total return through a combination of current income and capital appreciation, leveraging the deep expertise of PGIM's $1.2 trillion credit platform.1
"We're expanding our active ETF platform with innovative, competitively priced strategies that give investors more precise access to income-generating securitized credit opportunities," said Stuart Parker, head of Global Wealth at PGIM.
PGIM's ETF platform offers over 60 actively managed ETFs across equity and fixed income asset classes. PGIM is the 11th-largest active ETF provider4 with $27 billion in assets under management.1
Learn more about PGIM's growing lineup of actively managed ETFs at pgim.com.
ABOUT PGIM
PGIM is the global asset management business of Prudential Financial, Inc. ((PRU), with $1.4 trillion in assets under management.1 PGIM offers clients deep expertise across public and private asset classes, delivering a diverse range of investment strategies and tailored solutions — including fixed income, equities, real estate and alternatives. With 1,500+ investment professionals across 40 offices in 20 countries, we serve retail and institutional clients worldwide. For more information visit pgim.com.
Prudential Financial, Inc. of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom, or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. For more information please visit news.prudential.com.
1As of March 31, 2026.
2"Core-like" refers to the duration of the PGIM AAA CLO Aggregate Duration ETF (AAAD), which per the Fund's prospectus will be within one year of the broad U.S. bond market.
3As of May 31, 2026.
4Source: Morningstar Direct as of March 31, 2026.
PGIM AAA CLO Aggregate Duration ETF Risk Disclosure
As an actively managed exchange-traded fund (ETF), risks of investing in the Fund include, but are not limited to the following: The Fund is subject to authorized participant concentration risk and the risks of transacting in cash versus in-kind. ETFs may trade at a premium or discount to net asset value and may lack an active trading market. Additional costs may be incurred when transacting through a broker. Collateralized loan obligations are subject to credit, interest rate, valuation and prepayment and extension risks, as well as risk of default on the underlying asset. Collateralized loan obligation (CLO) managers may have limited operating histories and may be subject to conflicts of interest that may incentivize maximizing the yield, and indirectly the risk, of a CLO. Fixed income investments are subject to credit, market, prepayment and interest rate risks, and their value will decline as interest rates rise. Leveraging techniques may magnify losses. As a "fund of funds," the Fund is subject to the performance and risks of the underlying funds and their investments. Foreign securities are subject to currency fluctuations and political uncertainty. Derivatives may carry market, credit and liquidity risks. The Fund has a limited operating history, and investment positions may have a disproportionate impact on performance. There is no guarantee the Fund's objective will be achieved. Risks are more fully explained in the Fund's prospectus.
PGIM Securitized Income ETF Risk Disclosure
As an actively managed exchange-traded fund (ETF), risks of investing in the Fund include, but are not limited to the following: The Fund is subject to authorized participant concentration risk and the risks of transacting in cash versus in-kind. ETFs may trade at a premium or discount to net asset value and may lack an active trading market. Additional costs may be incurred when transacting through a broker. Collateralized loan obligations are subject to credit, interest rate, valuation and prepayment and extension risks, as well as risk of default on the underlying asset. Collateralized loan obligation (CLO) managers may have limited operating histories and may be subject to conflicts of interest that may incentivize maximizing the yield, and indirectly the risk, of a CLO. Fixed income investments are subject to credit, market, prepayment and interest rate risks, and their value will decline as interest rates rise. Floating rate and other loans are subject to the risk that failure to receive scheduled interest or principal payments on a loan would adversely affect the income of the Fund and would likely reduce the value of its assets. High yield ("junk") bonds are subject to greater credit and market 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 a similar risk of decline in market value during periods of rising interest rates. Holders of structured product securities bear the risks of the underlying investments, index or reference obligation. Investments in currency may result in a decline in the Fund's net asset value due to changes in exchange rates. Foreign securities are subject to currency fluctuations and political uncertainty. Derivatives may carry market, credit and liquidity risks. Leveraging techniques may magnify losses. The Fund has a limited operating history, and investment positions may have a disproportionate impact on performance. There is no guarantee the Fund's objective will be achieved. Risks are more fully explained in the Fund's prospectus.
PGIM AAA CLO ETF Risk Disclosure
As an actively managed exchange-traded fund (ETF), risks of investing in the Fund include, but are not limited to the following: The Fund is subject to authorized participant concentration risk and the risks of transacting in cash versus in-kind. ETFs may trade at a premium or discount to net asset value and may lack an active trading market. Additional costs may be incurred when transacting through a broker. Fixed Income investments are subject to credit, market, prepayment and interest rate risks, and their value will decline as interest rates rise. Foreign securities are subject to currency fluctuations and political uncertainty. Collateralized loan obligations are subject to credit, interest rate, valuation and prepayment and extension risks, as well as risk of default on the underlying asset. Collateralized loan obligation (CLO) managers may have limited operating histories and may be subject to conflicts of interest that may incentivize maximizing the yield, and indirectly the risk, of a CLO. Derivatives may carry market, credit and liquidity risks. As a non-diversified fund, investments in the Fund involve greater risk than investing in a diversified fund because a loss resulting from the decline in value of any one security may represent a greater portion of the total assets of a non-diversified fund. There is no guarantee the Fund's objective will be achieved. Risks are more fully explained in the fund's prospectus.
Consider a fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the fund. Contact your financial professional for a prospectus and summary prospectus. Read them carefully before investing.
Investment products are distributed by Prudential Investment Management Services LLC, member FINRA and SIPC. PGIM Investments is a registered investment advisor and investment manager to PGIM registered investment companies. PGIM is the principal asset management business of Prudential Financial, Inc. (PFI), and a trading name of PGIM, Inc. and its global subsidiaries and affiliates. © 2026 Prudential Financial, Inc. and its related entities. PGIM, PGIM Investments, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation. Clients seeking information regarding their particular investment needs should contact their financial professional.
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MEDIA CONTACT:
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Travis Fishstein
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travis.fishstein@pgim.com