PIMCO Managing Director Jerome Schneider joined ETF Trends Publisher Tom Lydon at the Inside ETFs conference in Hollywood, Fla. to discuss what fixed income investors, including advisors, are thinking about this year in anticipation of interest rates rising.
“The fixed income side of ETFs is really one that has become very poignant, especially over the past few years, “said Schneider. “Fixed income has become a hot topic over the last few quarters as we anticipated higher rates.”
Schneider notes that advisors have adjusted their portfolios in anticipation of the Federal Reserve raising interest rates, shortening duration while taking an active approach to mitigating interest rate risk.
Schneider is the manager of the PIMCO Enhanced Short Maturity ETF (NYSEArca: MINT). The $3.7 billion MINT has an effective duration of just 0.36 years and a 30-day SEC yield of 0.75%, according to PIMCO data.
Watch the video below to see the full interview.
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