A Bond ETF to Navigate Choppier Waters in Rising Rate Environment

Each week, ETF Trends publisher Tom Lydon sits down for “ETF of the Week” for MarketWatch on Chuck Jaffe’s MoneyLife Show where he highlights big movers and losers among exchange traded funds.

This week, Lydon looked at the PIMCO Low Duration Active ETF (LDUR).

Since the elections, markets have focused on inflation and pro-growth potential under Trump presidency. Consequently, many anticipate the Federal Reserve to hike interest rates to head off an overheating economy.

LDUR largely includes investment-grade debt, but potential investors should be aware that the active ETF includes a hefty 56.6% tilt toward investment-grade corporate debt, followed by 22.3% U.S. government debt, 6.6% emerging markets, 4.8% non-U.S. developed, 4.4% mortgage and 2.9% high yield credit.

Click here to listen to the podcast.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.