Attractive Risk/Return Characteristics
Short-term European high yield investors have historically benefited from a lower volatility profile than the broader high yield market, as well as the attractive returns of the asset class.
Credit and Default Risk
A decline in the financial health of an issuer of a fixed income security can lead to an inability or unwillingness to repay a loan or meet a contractual obligation. This could cause the value of its bonds to fall or become worthless. Funds with high exposures to non-investment grade securities have a higher exposure to this risk.
Derivatives and Counterparty Risk
The use of certain derivatives could result in the fund having a greater or more volatile exposure to the underlying assets and an increased exposure to counterparty risk. This may expose the fund to larger gains or losses associated with market movements or in relation to a trade counterparty being unable to meet its obligations.
Difficult market conditions could result in certain securities becoming hard to sell at a desired time and price.
Interest Rate Risk
Changes in interest rates will usually result in the values of bond and other debt instruments moving in the opposite direction (e.g. a rise in interest rates likely leads to fall in bond prices).
Index Tracking Risk
Fund performance can potentially deviate from the reference index due to market conditions, transaction costs and different replication techniques such as optimization & sampling
The PIMCO US Euro Short-Term High Yield Corporate Bond Index UCITS ETF aims to provide a return that closely corresponds, before fees and expenses, to the ICE BofAML 0-5 Euro Developed Markets High Yield 2% Constrained Index.
ICE BofAML 0-5 Year Euro Developed Markets High Yield 2% Constrained Index
The ICE BofAML 0-5 Year Euro Developed Markets High Yield 2% Constrained Index is comprised of Euro denominated below investment grade corporate debt securities publicly issued in the European domestic markets with remaining maturities of less than 5 years.
|Data point name||Data point value|
The fund is passively managed (i.e. tracks the ICE BofAML 0-5 Year Euro Developed Markets High Yield 2% Constrained Index (the "Index")). The fund is passively managed in reference to the above Benchmark, as further outlined in the prospectus and key investor information document.
|Data point name||Data point value|
|Benchmark BBG Ticker||HEDC|
|Number of Holdings||523|
|Launch Date||09 October 2017|
|UK Reporting Status||Yes|
|Registered for Distribution in||Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Spain, Sweden, Switzerland, United Kingdom|
|Exchanges||Deutsche Börse Xetra, Borsa Italiana, SIX Swiss Exchange|
|Financial Year End||31 March|
|Equity Ratio (Tax Information for German Investors)||0.00|
|Use of Income||Distributed|
Key Service Providers
|Issuer||PIMCO ETFs plc|
|Manager||PIMCO Europe Ltd|
|Fund Administrator||State Street Fund Services (Ireland) Limited|
|Depository||State Street Custodial Services (Ireland) Limited|
|Authorized Participants||Banca Sella Holding S.p.A., Bluefin Europe LLP, Citigroup Global Market Limited, Credit Suisse Securities (Europe) Limited, DRW Europe B.V., Flow Traders B.V., Goldenberg Hehmeyer LLP, Goldman Sachs International, JP Morgan Securities Ltd., Jane Street Financial Limited, Morgan Stanley and Co. International plc, Nomura International plc, Old Mission Europe LLP, Société Générale , Unicredit Bank AG, Virtu Financial Ireland Limited|
|FIN FUT EURO-BOBL 5Y EUX 12/07/23||6.00||1.27|
|FORD MOTOR CREDIT CO LLC SR UNSEC||3.25||0.76|
|LORCA TELECOM BONDCO REG S SMR||4.00||0.73|
|FORVIA SR UNSEC||2.63||0.72|
|THYSSENKRUPP AG SR UNSEC||2.88||0.64|
|FORD MOTOR CREDIT CO LLC SR UNSEC||3.02||0.62|
|BANCA MONTE DEI PASCHI S||1.88||0.60|
|TELEFONICA EUROPE BV JR SUB||3.88||0.59|
|CELLNEX FINANCE CO SA GTD SR UNSEC SMR||0.75||0.56|
|NIDDA HEALTHCARE HOLDING SMR||7.50||0.55|
Current holdings are subject to risk. Holdings are subject to change at any time.
Indicative Net Asset Value (iNAV) is a measure of the net asset value intraday, and is reported every 15 seconds during trading hours. PIMCO has partnered with external vendor Intercontinental Exchange Ltd. (ICE) to calculate iNAV for the European ETF Fund Ranges. ICE calculates iNAV using the mid prices of the respective ETF basket of securities to derive the market value and divides the total market value by creation unit size. The iNAV is calculated daily.
Fees & Expenses
Because the fund is an ETF, investors will typically only be able to buy or sell shares in the secondary market, on exchange. Authorized Participants who help in the creation or redemption of shares in the primary market, may face “create” or “redeem” fees (aka “entry” or “exit” fees) on the cash portion of the transaction (up to a maximum of 3.00%). These create and redeem fees are not applicable to secondary market investors. However, secondary market investors may incur brokerage and/or transaction fees in connection with their dealings. Secondary market investors may also bear the costs of bid-ask spreads; meaning the difference between the prices at which shares can be bought and sold.
Yields & Distributions
|Distribution Date||Dist. NAV (€)||Dividend Income (€)||Dist. Total (€)|
Price & PerformancePast performance does not predict future returns
|Sep`18 - Sep`19||Sep`19 - Sep`20||Sep`20 - Sep`21||Sep`21 - Sep`22||Sep`22 - Sep`23|
|Euro Short-Term High Yield Corporate Bond Index UCITS ETF||2.49||-1.83||7.98||-11.48||8.92|
|ICE BofAML 0-5 Year Euro Developed Markets High Yield 2% Constrained Index||3.03||-1.19||8.58||-11.23||9.40|
|Performance - Fund vs Index||-0.54||-0.64||-0.60||-0.25||-0.48|
Past performance is not a guarantee or a reliable indicator of future returns. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed. Performance data current to the most recent month-end is available by calling +44 203 3640 1552.
Growth of $10,000 is calculated at NAV and assumes that all dividend and capital gain distributions were reinvested. It does not take into account sales charges or the effect of taxes. Results are not indicative of future performance.
|category / asset class||FUND||Fund ratio||ICE BofAML 0-5 Year Euro Developed Markets High Yield 2% Constrained Index||Index ratio|
|Invest. Grade Credit||0.00||0.00|
|High Yield Credit||97.82||100.00|
|Net Other Short Duration Instruments||2.18||0.00|
|Sector||Fund||Fund ratio||ICE BofAML 0-5 Year Euro Developed Markets High Yield 2% Constrained Index||Index ratio|
|Invest. Grade Credit||0.00||0.00|
|High Yield Credit||98.46||100.00|
|Net Other Short Duration Instruments||0.00||0.00|
|Years||% of Fund||% of ICE BofAML 0-5 Year Euro Developed Markets High Yield 2% Constrained Index|
|Effective Maturity (yrs)||2.44||-|
|Quality||MV (%)||Fund percent|
|Bull Market Duration||2.11||2.27|
|Bear Market Duration||2.16||2.32|
|Total Curve Duration||-0.04||N/A|
|Mortgage Spread Duration||0.00||0.00|
|Corporate Spread Duration||2.85||2.97|
|Emerging Markets Spread Duration||0.01||0.01|
** Other net assets (liabilities) includes, but is not limited to, unsettled activity from shareholder and portfolio security trades, and accrued interest and expenses.