PIMCO has expanded its lineup of exchange traded funds with the launch of two active fixed income ETFs. The funds aim to harvest attractive yields by seeking historic opportunities in credit markets and short-term U.S. government securities, respectively.
The PIMCO Multisector Bond Active Exchange-Traded Fund (NYSE Arca: PYLD) selectively targets multi-sector global fixed income assets across various sectors. The PIMCO Ultra Short Government Active Exchange-Traded Fund (NYSE Arca: BILZ), meanwhile, primarily invests in short-term U.S. government related debt.
The benchmark agnostic PYLD emphasizes strategic or long-term investments to maximize yield potential while seeking long term capital appreciation. PYLD aims to have diversified exposure to credit markets including investment grade and high-yield bonds, among other assets.
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Seeking Long-Term Opportunities in a Less Certain World
PIMCO’s Group CIO Dan Ivascyn will lead the team managing PYLD. Ivascyn believes “the dramatic repricing of fixed income markets over the last 18 months is the beginning of… a secular shift in global markets.”
This “less certain, less synchronized world creates tremendous opportunities for flexible, multi-sector investors with a long-term investment horizon,” Ivascyn said. “The rapid rise in short-term rates… has also disrupted traditional ways of investing cash.”