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An Awesome New ETF for Aggressive Investors

July 3, 2023

Since its well-timed launch in December 2022 this ETF has been on fire. You can see why by looking at the list of largest holdings. As a result it has a relatively high expense ratio of 0.75pc. I had a look at the complete list of holdings and it is a good list with Quentinvest 3G stocks well represented.

PJFG is relatively unusual among ETFs in that instead of tracking a basket of stocks it is actively managed.

PJFG actively targets a narrow portfolio of 20 to 50 growth stocks globally. Despite not having market-cap restrictions, the fund focuses on large- and mid-cap stocks. The fund utilizes a growth investment style, constructing a portfolio with at least 65pc invested in equity and equity-related securities that aim to capture growth acceleration or duration that is not reflected in stock prices. Securities are selected based on a combination of fundamental research and bottom-up portfolio construction. Factors considered include unique business models, growth rate catalysts, and superior financial quality. The sub-adviser may sell securities based on negative earnings, adverse price movement, declining prospects, and more attractive stocks. The fund also participates in the IPO market. Up to 35pc of assets may be invested in non-US securities.

ETF.com

PGIM, the manager of PJFG, is an interesting business.

PGIM Quantitative Solutions is the quantitative equity, systematic macro, and multi-asset specialist of PGIM. For more than 45 years, PGIM Quant Solutions has helped investors around the world solve their unique needs by leveraging the power of technology and data as well as advanced academic research. PGIM Quant Solutions manages portfolios across equities, multi-asset and liquid alternatives and also offers defined contribution solutions. As of Sept. 30, 2022, PGIM Quant Solutions managed $81bn in client assets.

BusinessWire, a Berkshire Hathaway company

Strategy – How to Buy an Instant High Quality, High Growth Portfolio

The chart above is weekly which means it is not much use, to my way of thinking, for technical analysis but the price action is clearly positive. A bold investor could do a great deal with this ETF in a leveraged account, using CFDs or Spread Betting.

Since launch PJFG is up some 39pc.

PJFG v QQQ3

The interesting question is what has happened to my favourite benchmark, QQQ3, over the same period and what do we find – a gain of 158pc!

Not only is QQQ3 an amazing stock to hold in a bull market but it is highly predictable that it will be. So far since December 2022, QQQ3 has been recommended 16 times in Quentinvest. The average recommendation price is $81.8, for a gain to date of 51.6pc.

Not only is this a good gain but you have a decent holding after buying 16 parcels of shares and remember that QQQ3 has only just given a double whammy buy signal so there should be more gains ahead. It may well be that the best is yet to come.

Share Recommendations

PGIM Dennison Focused Growth. PJFG. Buy @ $64.5

Wisdomtree Nasdaq 100 3x Daily Leveraged. QQQ3. Buy @ $124

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