PIMCO US Short‑Term High Yield Corporate Bond

ETF description

This ETF offers investors exposure to a variety of short‑term corporate bonds, specifically focusing on those with higher yields. It includes bonds from companies that may be seen as less stable than larger corporations, which often means they offer the potential for greater returns. By investing in this ETF, individuals can gain access to a diversified mix of these bonds, which helps reduce risk compared to buying individual bonds.

This ETF is suitable for individuals who seek to balance risk and return in their portfolios. It may also appeal to investors who are looking to add a fixed‑income component to their investments without committing to longer‑term bonds

Issuer details

PIMCO (Pacific Investment Management Company) is a leading global asset management firm and a subsidiary of Allianz SE, with over $2.2 trillion in assets under management as of June 2024. PIMCO offers a comprehensive range of investment products and covers various market segments. Founded in 1971 by Bill Gross, Jim Muzzy, and Bill Podlich, PIMCO is renowned for its fixed income expertise and investment strategies. With a strong global presence and a commitment to active management, PIMCO strives to provide clients with superior investment solutions. Notable ETFs include the PIMCO Active Bond Exchange‑Traded Fund (BOND) and the PIMCO Enhanced Short Maturity Active Exchange‑Traded Fund (MINT), reflecting PIMCO’s dedication to delivering high‑quality and actively managed investment options.

Index details

The ICE BofA 0 – 5 Year US High Yield Constrained Index tracks the performance of short‑term U.S. dollar denominated below investment grade corporate debt issued in the U.S. domestic market with less than five years remaining term to final maturity, a fixed coupon schedule and a minimum amount outstanding of $100 million, issued publicly. Allocations to an individual issuer will not exceed 2%.