Actively managed exchange traded funds (ETFs) recently hit a significant milestone as PIMCO‘s actively managed ETF joins the billion dollar club.
The PIMCO Enhanced Short Maturity Strategy Fund (NYSEArca: MINT) has become the first actively managed ETF to break the $1 billion milestone, and the ETF is sitting comfortably at $1.18 billion in assets, writes Hung Tran for The Mutual Fund Wire.
PIMCO’s MINT ETF is a money-market alternative for investors who are seeking a way to store excess cash without the prospect of minimal returns offered by Treasuries and money-market funds. The fund’s asset base moves inversely with market performances due to its role as a cash alternative, and its performance has been able to outdo that of other passive ETFs operating in the money market area.
As of February, only 145 ETFs are in the billion-dollar-club, which makes up 12% of the 1,100 ETFs available in the U.S., comments Shishir Nigam for Daily Markets.