PGIM, the $1.2 trillion global investment management business of Prudential Financial, has launched two exchange-traded funds, one focused on the collateralized loan obligation market and the other on short-duration bonds.

The first fund is called the PGIM AAA CLO ETF (its ticker is “PAAA.”) The fund offers retail investors access to the growing $1.2 trillion collateralized loan obligation market, which was in the past available only to institutional investors, PGIM said.

“The CLO market has evolved since the global financial crisis and represents an enormous, relatively untapped opportunity for retail investors,” said Edwin Wilches, the new fund’s co-portfolio manager, in a statement. High-quality CLOs offer one of the best relative value trades in the fixed-income market today given their attractive yield potential, floating-rate coupons and credit protection in ‘AAA’ tranches.” His co-managers are Gabriel Rivera and Connor Byrnes.

The ETF has a net expense ratio of 0.19% and seeks to maximize total return through a combination of current income and capital appreciation, investing primarily in U.S. CLOs rated “AAA” or equivalent, PGIM said.

“As we remain in a period of economic uncertainty with tighter financial conditions and corporate defaults expected to increase, high-quality CLOs have the potential to insulate an investor’s portfolio while providing diversification benefits with less idiosyncratic risk and the potential for attractive risk-adjusted returns,” Wilches said.

The second fund is the PGIM Short Duration Multi-Sector Bond ETF, which seeks to provide total return, allocating its investments across different sectors of the fixed-income market with an average portfolio duration of three years or less, PGIM said. The ETF mirrors an existing mutual fund, the $2.9 billion PGIM Short Duration Multi-Sector Bond Fund.

“Active ETFs are one of the fastest growing segments of the ETF market today,” said Stuart Parker, the president and CEO of PGIM Investments, in a statement. “PGIM will continue to aggressively expand its suite of products to meet this client demand by either offering new ways to access the market or expanding access to our flagship strategies.”

With the addition of these new funds, PGIM Investments now offers investors 10 actively managed ETFs across fixed income, equities and multi-asset solutions.