PGIM Jennison Better Future ETF (PJBF) seeks to provide long-term capital appreciation by investing in companies positioned to benefit from transformative global trends and sustainable innovation. This actively managed equity ETF focuses on businesses addressing environmental challenges, technological advancement, and social progress across developed and emerging markets.
How It Works
PJBF employs an active management approach using PGIM Jennison's fundamental research to identify companies driving positive change through innovation and sustainability. The portfolio managers select 30-60 stocks based on proprietary analysis of long-term growth potential, competitive advantages, and alignment with transformative trends. Holdings are weighted based on conviction levels rather than market capitalization, with quarterly rebalancing to maintain optimal positioning across themes like clean energy, healthcare innovation, and digital transformation.
Key Features
- Actively managed by experienced PGIM Jennison team with proven track record in growth and sustainable investing strategies
- Concentrated portfolio of 30-60 high-conviction holdings allows for meaningful exposure to transformative innovation themes
- Zero expense ratio launch promotion provides cost-effective access to active management focused on future-oriented companies
Risks
- This ETF can lose value if growth and innovation stocks fall out of favor, potentially declining 40-50% during growth stock corrections like 2022
- Concentrated portfolio of 30-60 holdings creates higher volatility than diversified funds, with individual stock failures significantly impacting returns
- Active management risk means the fund could underperform passive alternatives if stock selection proves incorrect over multi-year periods
Who Should Own This
Best suited as a satellite holding (5-15% of equity allocation) for growth-oriented investors with 7+ year time horizons and high risk tolerance. Appropriate for investors seeking exposure to transformative trends and sustainable innovation themes. Works well for younger investors building wealth or as a complement to core index fund holdings in tax-advantaged accounts.