PGIM Active High Yield Bond ETF

PGIM Active High Yield Bond ETF (PHYL) is an actively managed fund from PGIM, part of Prudential. It held 806 high-yield, or "junk," bonds and loans as of August 31, 2026. These are debts of borrowers with lower credit ratings, mostly US companies. It pays income monthly, with a trailing yield of 7.13% as of October 27, 2026. Its 0.39% expense ratio is below the 0.48% average of similar funds, though some rivals charge far less.

• Over the year to Oct 27, 2026, PHYL returned +1.3%, 5th of 8 among similar funds.
• Its 5-year annualized return was +3.6%.
• In the 2020 COVID crash it fell 22% and regained its old high 4.4 months after the low.
• Its worst full calendar year was 2022 (-11.8%); its best was 2019 (+16.8%).
• The deepest fall in its price history was 22.1% (Feb 12, 2020 to Mar 23, 2020), recovered by Aug 6, 2020.

As of Aug 31, 2026, the fund held 806 securities; the ten largest made up 6.74% of assets.

The bonds mature in 4.3 years on average (weighted by size), with an average coupon of 6.7%.

• Over the three months to Aug 31, 2026, investors added a net $132.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.30%, -0.51%, +0.85%.

PHYL does not track an index. A subadviser picks what to own. At least 80% of the fund must be in high-yield bonds, or in derivatives that act like them. High-yield means rated Ba1 or BB+ or lower by the major rating agencies, or judged to be of similar quality if unrated. The prospectus defines "bonds" broadly. The term covers loans, convertibles, preferred stock and asset-backed securities. The fund may also buy distressed securities, meaning debt from issuers in default or bankruptcy. Up to 20% may be in bonds priced in foreign currencies, including emerging markets. The fund intends to hedge those currencies back to US dollars.

The managers combine top-down views on the economy, policy and markets with bottom-up research. That research gives each issuer an internal rating and outlook, supported by quantitative models. They may choose a bond for its expected total return rather than its yield. No fixed weighting or rebalancing schedule applies. Turnover was 76%.

As of August 31, 2026, the 10 largest positions made up just 6.74% of assets. The biggest were PGIM AAA CLO ETF (about 1%), a TransDigm bond and a Radiate Holdco loan. The fund also used a credit default swap on the CDX high-yield index, plus Treasury futures and currency forwards. Its average maturity was 4.3 years. Shares may be created and redeemed for cash, which can lead to taxable gains.

• PHYL charges 0.39% a year, versus an average of 0.48% for the similar funds below (4th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $40 in the first year and $493 over 10 years (assuming a 5% annual return).

PHYL pays monthly and had a trailing yield of 7.13% as of October 27, 2026, but its junk-bond holdings carry more credit risk than core bond funds.

PHYL could add monthly income to the bond side of a portfolio. Its trailing 12-month yield was 7.13% as of October 27, 2026. The cost is 0.39% a year. In the SEC's standard example, that comes to $40 in the first year on a $10,000 investment. The trade-off is that junk bonds often fall when stocks do. The fund launched in 2018, so it has no 2008 record. In the 2020 COVID crash it lost 22% in about a month. It then took about 4.4 months to recover. In the 2022 bear market it fell 15.8% and needed about 17 months to regain its high. Its worst calendar year was 2022, at −12.01%. Anyone forced to sell shares in a slump like that would lock in losses. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).