Additionally, money market fund boards can impose fees or so-called gates during periods of distress. If a fund’s level of weekly liquid assets dips below 30% of total assets under management, the fund could impose a liquidity fee of up to 2% on all redemptions. [New Money Market Rules a Boon for Some ETFs]
With some investors betting on an interest hike by the Federal Reserve next year, MINT’s position as an ultra-low duration ETF could also prove alluring to market participants looking for products that are less sensitive to changes in Fed policy.
MINT, which charges 0.35% per year with a 30-day SEC yield of 0.49%, has an effective duration of just 0.45 years, according to PIMCO data.
PIMCO Enhanced Short Maturity ETF
ETF Trends editorial team contributed to this post.