New PIMCO 0-5 Year High Yield ETF Is An Attractive Offering

PIMCO expanded its fixed income ETF menu with the June 17, 2011 introduction of PIMCO 0-5 Year High Yield Corporate Bond Index Fund (HYS).  HYS will attempt to replicate the price and yield performance of the BofA Merrill Lynch 0-5 Year US High Yield Constrained Index using PIMCO’s “smart passive” approach to indexation. The underlying BofA Merrill Lynch 0-5 Year US High Yield Constrained Index (registration required, index ticker = HUCD) tracks the performance of short-term U.S. dollar denominated, below-investment grade corporate debt issued in the U.S. market.  Allocations to an individual issuer will not exceed 2%.  The index currently has 787 constituents, an effective yield of 7.5%, and a duration of 2.2 years. PIMCO’s “smart passive” approach incorporates . . . → Read More: New PIMCO 0-5 Year High Yield ETF Is An Attractive Offering