He adds: “The SEC ratcheted down money market fund risk. This ETF avoids much of that regulation, allowing it to earn potentially higher returns.”
PIMCO’s fact sheet on the ETF describes the product as an actively managed fund that seeks greater income and total return potential than money market funds, which may be appropriate for non-immediate cash allocations.
MINT primarily invests in short-duration investment grade debt securities. “The average portfolio duration of MINT will vary based on PIMCO’s economic forecasts and active investment process decisions, and will not normally exceed one year,” it says. One potential benefit of the ETF is “potential yield premium and total return advantage over typical money market funds, as MINT can own longer maturity bonds and a broader universe of investment-grade fixed income securities.”
PIMCO Enhanced Short Maturity Strategy has an expense ratio of 0.35% and an SEC 30-day yield of 1.35%.
PIMCO Enhanced Short Maturity Strategy
