PIMCO and Source launch short-term high yield ETF

PIMCO and Source have launched a product giving investors in Europe physical access to the short dated end of the high yield universe for the first time.

The PIMCO Short-Term High Yield Corporate Bond Index Source ETF contains 821 securities and will track the BofA Merrill Lynch 0-5 Year US High Yield Constrained index. Historically, returns of the short-term segment of the high yield market have been in line with equities, but with approximately half the volatility, said Source. Ted Hood, Source CEO, said: "Investors told us they were looking for opportunities to invest in high yield but wanted a ‘smarter' ETF to deliver access to the short maturity sector while at the same time aiming to deliver efficient tracking and improved portfo...