Socially Conscious Investors May Like This Short-Maturity ETF

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.

(Note: Third in a series of environmental, social and governance (ESG) ETFs)

Socially conscious investors looking for an alternative to money market mutual funds may want to consider PIMCO Enhanced Short Maturity Active ESG ETF (NYSE:EMNT).

As an actively managed exchange-traded fund (ETF), compared to a money market fund, EMNT seeks greater income and total return potential by investing in short-term debt securities with an environmental, social and governance (ESG) screen. That approach makes EMNT ideal for socially conscious investors.

In looking to provide higher income than the average money market mutual fund, EMNT holds a variety of high-quality and ultra-short-term U.S. dollar-dominated debt, along with investment-grade securities. Investors will not solely be exposed to U.S.-based debt, since they will be exposed to U.S. dollar-denominated securities from developed countries and emerging markets, too. The fund aims to keep the average holding duration under one year and seeks to maintain a dollar-weighted average for less than three years.

This open-ended fund has a net expense ratio of 0.24% and $87.54 million in assets under management. Year to date, the fund has a total return of 1.30%. As depicted in the chart below, EMNT dropped sharply in mid-to late-March. However, starting in early April, the fund began to climb. Plus, the fund hit an all-time high market open of $100.56 on July 1. This showed a rise of 0.05% from the previous day’s close.

PIMCO, the creator of PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (MINT), is looking to find equal success with this ETF, as the investment management company found that not only were investors looking to move away from money market mutual funds, but ESG was becoming a priority as well. In order to satisfy this pool of investors, EMNT is unique as it works to avoid investing in securities of issuers whose business practices, in terms of ESG, are not up to par with PIMCO’s proprietary assessments.

Though PIMCO has a set of criteria for its EMNT investments, it initially may engage with issuers whose ESG practices are suboptimal in hopes that through the initial engagement, their practices may improve.

Exclusive  Shield Yourself From Risk with the Low-Volatility Fund DMRL

For socially conscious investors who are looking for a greater income and greater return potential, Enhanced Short Maturity Active ESG ETF (NYSE:EMNT) may be worth consideration.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
previous article

Jim Woods discusses how the first half of the year was a tale of two quarters. It was the best of times, it was the worst of times.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE