ETF Spotlight on the PIMCO Diversified Income ETF (NYSEArca: DI), part of an ongoing series.
Assets: $43.7 million
Objective: The PIMCO Diversified Income ETF is an actively managed fund that tries to provide exposure to the global credit markets.
Holdings: Top holdings include Indonesia government debt 3/13/2020 4.6%, Fiat Finance & Trade 10/17/2016 4.2% and Sprint Corp Sr Unsec 144a 9/15/2023 4.1%
What You Should Know:
- Pacific Investment Management Company sponsors the ETF.
- DI has a 0.85% expense ratio.
- The fund includes 51 components, and the top ten make up 34.7% of the overall portfolio.
- Sector allocations include U.S. credit 42%, non-U.S. developed 20% and emerging markets 34%.
- Country allocations include U.S. 39.6%, Mexico 7.6%, Italy 7.2%, Russia 6.8%, France 5.2%, U.K. 4.8%, Brazil 4.6%, Indonesia 4.6%, Venezuela 3.0%, Peru 2.4%, Colombia 2.2%, Poland 1.5% and Belgium 0.5%.
- Credit quality include government 14.2%, AA 3.2%, A 9.9%, BBB 25%, BB 27.6%, B 6%, CCC 0.5% and not rated 3.7%.
- DI began trading on January 22, 2014.
- The ETF is up 2.9% since inception.
- The fund has an effective duration of 4.77 years.
- DI comes with a 3.12% 30-day SEC yield.
- The ETF is managed by Curtis A. Mewbourne, managing director and head of portfolio management in New York.
- Investors can use DI to gain a global fixed-income exposure and leave the tactical sector, country, industry and issuer decisions with PIMCO.
- “The fund aims to control downside risk by investing in a highly diversified portfolio of credits which have been carefully screened by PIMCO’s global team of more than 55 credit analysts,” according to PIMCO. “The fund may not use options, futures or swaps.”
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