PYLD ETF

Throughout the summer, we've seen central banks from developed markets worldwide begin to cut interest rates. While this bodes well for the individual countries, another market concern may be on the horizon.

PYLD is a diversified multi-sector bond ETF from PIMCO. The fund focuses on MBS and CMOs, with a good credit quality and leverage that boosts yield and returns. It sports an above-average 5.5% yield, and has outperformed most of its peers since inception.

The Fixed Income Symposium is happening this week, coming at a crucial moment. Todd Rosenbluth, head of research at VettaFi, mentioned that many advisors are questioning whether the Fed will lower rates in 2024 following the latest inflation figures.

Advisors have long turned to active management to gain fixed income exposure. Thus far in 2024, this has persisted due in part to macroeconomic uncertainty.

PIMCO Multisector Bond Active Exchange-Traded Fund ETF offers diverse exposure to yield-oriented fixed income sectors with active management from PIMCO. The PYLD ETF's strategy focuses on long-term investments and downside mitigation, with holdings in various fixed income instruments. PYLD sets itself apart from peers by offering exposure to both investment-grade and high-yield bonds, potentially generating higher yields and capital appreciation.

VettaFi's Head of Research Todd Rosenbluth discussed the PIMCO Multisector Bond Active ETF (PYLD) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and analysis, visit VettaFi | ETF Trends.

PIMCO launched PYLD, a bond ETF, a few months back. The fund offers investors diversified exposure to bonds, and the expertise and performance that PIMCO is famous for. An overview of the fund follows.

PIMCO Multisector Bond Active ETF is a new fixed-income ETF that aims to take advantage of higher rates via its recent June 2023 IPO. The fund has a large allocation to collateralized mortgage obligations (CMOs), which make up over 22% of its collateral pool. With mortgage rates at 20-year highs, CMOs represent an attractive risk/reward proposition at this point in the economic cycle.