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Enhanced Short Maturity Active ETF (MINT) at a 52-Week High

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For investors looking for momentum, PIMCO Enhanced Short Maturity Active ETF (MINT - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 5.4% from its 52-week low price of $96.77/share.

Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:

MINT in Focus

This ETF seeks maximum current income, consistent with preservation of capital and daily liquidity. It has AUM of $13.88 billion and charges adjusted expense ratio of 35 basis points.

Why the Move?

Wall Street witnessed a rough three-day stretch beginning Sep 3, after a strong August. The rough patch, marked by the sharp sell-off in technology stocks, could have been a result of people rushing to book profits, probably due to worries over high valuations, uncertainty over another pandemic stimulus-relief package, budget negotiations and the approaching elections. Also, September is historically considered the worst month for the stock market. Per the LPL Financial data in a Yahoo Finance article, the S&P 500 has fallen about 1% on average in September since 1950. In such a scenario, funds primarily aiming to generate greater income and total return potential than money market funds can see higher demand and appear to be safer options. This is making funds like MINT an attractive investment option.

More Gains Ahead?

It seems like the fund will remain strong, with a positive weighted alpha of 0.70, which gives cues of further rally.

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