The appeal of such funds among institutional portfolio managers is likely as a liquid cash alternative in ETF form, and the potential of earning yields greater than money market mutual funds and/or cash sweeps.
Of course there are no guarantees, but each of these funds follows a specific methodology, largely predicated on investing on very liquid, short term high rated “paper,” including corporates, governments and cash equivalents.
Of additional appeal to portfolio managers that are focused on “building” pure ETF portfolios, is the fact that now even “money market like” investments can be made using ETFs.
Thus, ETF “purists”, have likely gravitated toward the usage of such ETFs in place of money market mutual funds which they likely formerly used for decades to fill those allocation sleeves in portfolios.
MINT is undisputably actively managed, but such is the hallmark of the fund provider PIMCO. Currently, according to the fund fact sheet, MINT’s estimated yield to maturity is 0.81% and its SEC 30-Day Yield is 0.68%.
PIMCO Enhanced Short Maturity Strategy
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