For investors seeking momentum, PIMCO Enhanced Short Maturity Active ETF MINT is probably on radar. The fund just hit a 52-week high and is up 1.99% from its 52-week low price of $98.14/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
MINT in Focus
This ETF is active and does not track a benchmark. The PIMCO Enhanced Short Maturity Active ETF seeks greater income and total return potential than money market funds, and may be appropriate for non-immediate cash allocations. It primarily invests in short-duration investment-grade debt securities. The product charges 35 bps in annual fees (see: all the Ultra Short-Term ETFs here).
Why the Move?
The short-term corner of the Treasury market has been an area to watch lately, given the current stock market uncertainty. The growing likelihood of the Fed maintaining a hawkish stance for an extended duration and the rising prospects of an economic slowdown in the United States by some analysts are making cash-like ETFs more appealing to investors. As investors aim to reduce their exposure to potential stock market downturns, money-market ETFs tend to gain.
More Gains Ahead?
Currently, MINT might continue its strong performance in the near term, with a positive weighted alpha of 1.4, which gives cues of a further rally.
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