Global stock exchange traded funds are selling off Friday after a disappointing nonfarm payrolls report for August. Now might be a good time to take another look at an ETF that’s designed as an alternative to money market funds for investors looking for a safe place to stash cash.
An ETF that we highlighted in this report going back nearly two years as one for fund managers and institutions to pay attention to is Pimco Enhanced Short Maturity Strategy (NYSEArca: MINT).
Since launching in November of 2009, the actively managed fund has garnered over $1.4 billion in assets under management and seems to appeal to those portfolio managers that are looking for a stable cash position in ETF form outside of using a traditional money market mutual fund. [Pimco ETF Geared to Risk-Averse Investors]
Amidst the recent volatility in the equity markets, we have seen more interest from managers in MINT as a potential cash management tool within ETF portfolios.
MINT aims to provide a higher return in terms of income and total return than ordinary money market mutual funds, and achieves these goals by investing in short duration investment grade debt.
MINT’s success has obviously impressed the industry, as we recently learned that Federated Investors, a large institutional manager of mutual funds, is preparing to launch their first ETF which will be structured as an alternative to money market mutual funds. On the heels of such a launch, this will cause us to watch this space with even greater interest. [Federated Readies First ETF]
Pimco Enhanced Short Maturity Strategy