(PHYL) PGIM Active High Yield Bond - Ratings and Ratios

The PGIM Active High Yield Bond ETF (NYSE ARCA:PHYL) is an exchange-traded fund that focuses on investing in high-yield bonds, which are below investment grade, and other similar economic instruments. The fund maintains a diversified portfolio, adhering to its investment strategy under normal market conditions.

To evaluate the funds performance, we can consider key performance indicators (KPIs) such as yield, duration, and credit quality. The high-yield bond category is known for its higher risk due to the lower credit ratings of the issuers, which typically translates to higher yields for investors. A key metric for PHYL would be its yield to maturity (YTM), which indicates the total return an investor can expect if the funds holdings are held to maturity. Additionally, the funds duration, a measure of its sensitivity to interest rate changes, is crucial for understanding its interest rate risk.

The funds investment in securities that are in bankruptcy proceedings or in default, as well as those rated in the lower categories, suggests a higher risk profile. The Subadvisers judgment on the equivalent quality of unrated securities plays a significant role in managing this risk. To gauge the funds risk-adjusted performance, metrics such as the Sharpe ratio, which measures excess return over the risk-free rate relative to its volatility, can be insightful.

Given its AUM of $306.29 million, PHYL has a considerable presence in the high-yield bond ETF market. Its liquidity, as indicated by its trading volume and bid-ask spread, is also an important factor for investors, as it affects their ability to enter or exit positions without significantly impacting the price.