PIMCO Managing Director Jerome Schneider joined ETF Trends Publisher Tom Lydon at the Morningstar ETF Conference in Chicago to talk about what the Federal Reserve’s next move might be when it comes interest rates.

Schneider, the manager of the PIMCO Enhanced Short Maturity ETF (NYSEArca: MINT), the largest actively managed ETF, said PIMCO believes the Fed will begin raising rates in the middle of next year.

“When you look at the volatility of how a portfolio performs, a key shock absorber is having a good core fixed income allocation,” said Schneider. “Active management allows you to choose how that allocation is happening. We can help provide building blocks in terms of risk attributes.”

Watch the video below to see the full interview.

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