ETF Launches: EMNT

PIMCO debuts an actively managed ESG bond ETF

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Reviewed by: Heather Bell
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Edited by: Heather Bell

 


FEATURED ETF
PIMCO Enhanced Short Maturity Active ESG ETF (EMNT)
The new product from PIMCO offers actively managed exposure to the ESG fixed income space

In December, Pimco rolled out a first-of-its-kind ETF that takes an actively managed ESG approach to short-term debt. The PIMCO Enhanced Short Maturity Active ESG ETF (EMNT) leverages PIMCO’s expertise in the fixed income space and the environmental, social and governance (ESG) investment space.

EMNT comes with an expense ratio of 0.24% and lists on the NYSE Arca. 

The fund targets money market investments and short-term debt securities selected based on PIMCO’s in-house ESG framework. The securities are chosen for their high quality as well as their environmental processes, their corporate governance practices and their social policies, according to the press release.

EMNT is expected to have an average duration of one year or less, while its dollar-weighted average maturity is expected to be three years or less, the prospectus says.

According to the prospectus, PIMCO uses a variety of in-house and external methods to evaluate a company’s ESG status as well as engaging with issuers of fixed income about improving their ESG practices. EMNT’s portfolio will also automatically exclude issuers that are significantly involved in the alcohol, tobacco, defense, gambling, coal and pornography industries.

Source: ETF.com. Data and information as of 12/31/2019.
ETF Filings sidebar covers launches and closures for the month of December 2019.

 

Heather Bell is a former managing editor of etf.com. She has also held editorial positions at Dow Jones Indexes and Lehman Brothers. Bell is a graduate of Dartmouth college and resides in the Denver area with her two dogs.