Pimco US Short High‑Yield Corporate Bonds

ETF description

This ETF focuses on investing in short‑term, high‑yield corporate bonds issued by U.S. companies. High‑yield bonds, also known as ‘“junk bonds,”’ typically offer higher interest payments to compensate for the increased risk of default compared to investment‑grade bonds. The fund aims to provide higher income through these bonds while maintaining relatively short maturities, which helps to reduce sensitivity to interest rate changes.

This ETF may appeal to investors who are looking for higher income potential from bonds but are willing to accept more risk compared to investment‑grade options. The short‑term nature of the bonds helps to manage interest rate risk, making it suitable for those looking for a balance between income generation and risk management in a corporate bond portfolio. However, it is likely to be more appropriate for investors comfortable with the potential volatility and risks associated with high‑yield 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 US Short High‑Yield Corporate Bonds index provides investors with targeted exposure to short‑duration, high‑yield corporate bonds issued by US companies. By capturing the performance of higher‑risk, higher‑return bonds with shorter maturities, the index offers significant income potential and reduced interest rate risk.