The PIMCO Enhanced Short Maturity Strategy Fund ETF (NYSEArca: MINT) is an actively managed ETF that tries to outperform the broader money market through securities with short-term maturities. The fund has a higher 0.93 year effective duration, a 0.35% expense ratio and a 0.68% 30-day SEC yield.
“Stricter money market fund rules have artificially pushed down yields in short, high-quality debts, homogenizing money market funds,” according to Morningstar analyst Samuel Lee. “There’s value just beyond money markets’ credit-quality and duration limits, and the actively managed PIMCO Enhanced Short Maturity Strategy exploits the gap. However, unlike money market funds, MINT doesn’t guarantee a fixed price level nor does it benefit from an implicit government backstop.”
For more information on the money markets, visit our money markets category.
Max Chen contributed to this article.
Story updated to correct a statement on the credit quality of MINT holdings.