Don't be fooled!
PETDX uses it's portfolio of BOND holdings (no matter what
Fred tries to tell you) to leverage CDS's, derivatives AND exposure to the highly volatile REIT and MREIT markets.
When the ZIRP policies of the inept corrupt Federal Reserve Private Banker Cartel are cancelled or reduced or for that matter any hint see what happens.
Today's "comments" by Bernanke and a few dissenters of current policy proves the point.
Past performance is not a predictor of future earnings or "yield" of this fund.
I've said it before and got blasted. Be VERY careful and wary of what could happen with your principal amount invested here.
Watch like a hawk.
It does not "follow" the SP500 per se in that it does not invest in stocks in the index. It aims to match the performance of the SP500.
This is another fund from PIMCO that is heavily into derivatives which are leveraged by their bond holdings. The strategy is much the same as PETDX, but not quite as focused on real estate.