John Spence devotes today's Wall Street Journal Fund Track column to one of Pimco's active ETFs.

The Pimco Enhanced Short Maturity ETF "is one of Pimco's most successful early offerings and also is one of the largest actively managed ETFs," notes Spence. A little more than a year since its launch, ETF has attracted some $800 million of assets.

The fund looks to provide a better return than money-market funds and targets investment-grade debt securities such as government bonds, mortgages and corporate debt with a duration of less than a year. The fund had a 30-day yield of 0.66 percent as of Dec. 29, according to Pimco, and charges a management fee of 0.35 percent.

Don Suskind, head of Pimco's ETF product-management team, told the pub that the ETF is "something different to enhance return for nonimmediate cash needs".

Jerome Schneider, the portfolio manager, said the ETF is designed for investors who is looking to deploy cash in the intermediate term, such as a few weeks, months or even years, and it offers "a relatively safe and attractive yield."  

Edited by: Hung Tran


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