PIMCO has launched the PIMCO Short Term Active Yield Active ETF (EARN), its fifth active exchange-traded fund in Australia and available on the ASX.
The company says it is designed to meet the evolving needs of investors. EARN offers a compelling alternative to traditional cash and term deposits by combining capital preservation, liquidity, and enhanced return potential in a short-duration, actively managed strategy.
The launch of EARN follows the launch of four active fixed income ETFs in February by PIMCO — PGBF, PDFI, PCRD, and PAUS — each designed to offer Australian investors institutional-grade access to global and domestic bond markets.
EARN invests in a portfolio of high-quality, investment-grade bonds, and is built for investors seeking a modest shift from traditional savings vehicles, offering attractive monthly income and daily liquidity without compromising on credit quality. Active management is central to the strategy, drawing on PIMCO’s global credit research and macroeconomic insights to navigate short-term fixed income markets.
PIMCO says the launch of EARN responds directly to the evolving needs of Australian investors amid falling cash rates and increasing demand for low-duration, actively managed fixed income strategies. It fills a gap in the Australian ETF market by offering a local fixed interest strategy with a minimum of 50% AUD-denominated bonds, making it highly relevant for domestic investors.
“EARN is designed to provide a compelling alternative to cash and money market funds — helping investors put their money to work while maintaining capital stability and liquidity,” said Sam Watkins, Managing Director and Head of PIMCO Australia and New Zealand.
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“It complements our existing suite of active fixed income ETFs and, as one of Australia’s biggest fund managers, reflects our commitment to delivering innovative solutions tailored to investors here.”
Positioned as a flexible income solution, EARN offers:
- A yield advantage over traditional cash and term deposits
- Capital preservation through exposure to investment-grade bonds
- Daily liquidity for easy access to funds
- An active edge in short-term fixed income, powered by PIMCO’s global expertise
