If I understand your question right then below should work.
data have;
input raw_name $80. ;
cards;
John Smith
Liz Wood
Eric Little
;
%let list=wood ERIC ;
%let list2=%sysfunc(translate(&list,|,%str( )));
data want;
set have;
_prxid=prxparse("/\b(&list2)\b/i");
call prxsubstr(_prxid,trim(raw_name),_pos,_len);
if _pos>0 then
do;
raw_name=substr(raw_name,_pos,_len);
output;
end;
drop _:;
run;
proc print data=want;
run;
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