Investors have become increasingly concerned about a rising rate environment in the U.S., with benchmark yields on 10-year Treasuries jumping 100 basis points over the summer. As a way to diminish the negative effects of rising rates on fixed-income assets, investors sought out shorter duration bond funds.
Across the pond, the U.S.-listed PIMCO 0-5 Year High Yield Corporate Bond Index ETF (NYSEArca: HYS), which launched in June of 2011, has about $3.3 billion in assets under management, of which $2.4 billion was added this year alone, according to IndexUniverse data. HYS has a 0.55% expense ratio and a 3.43% 30-day SEC yield.
The three PIMCO funds are based on the BofA Merrill Lynch 0-5 Year US High Yield Constrained Index. [High-Yield Bond ETFs: Interest Rate Risk vs. Credit Risk]
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Max Chen contributed to this article.