This report provides a comprehensive analysis of the PIMCO US Dollar Short Maturity UCITS ETF (ticker: MINT), an actively managed fixed income solution traded on the London Stock Exchange (LSE). The MINT ETF is designed to offer investors current income, capital preservation, and daily liquidity, primarily through investments in a diversified portfolio of US dollar-denominated, investment-grade fixed income securities with short maturities.
The report delves into MINT's suitability as a vehicle for parking cash, comparing its features, potential yields, and risks against holding short-term U.S. Treasuries. It examines the benefits of PIMCO's active management in the short-duration space, the ETF's liquidity, and its income distribution policy. Cost structures, including the Total Expense Ratio (TER) and any temporary fee waivers, are also considered.
Furthermore, the analysis addresses potential negatives and ethical considerations, particularly MINT's ESG (Environmental, Social, Governance) profile, noting it is not marketed as a dedicated sustainable investment and may hold securities that do not align with all SRI (Socially Responsible Investing) screens. Market-related risks, including performance during stress periods, are also discussed.
The report maintains its original comparative overview of two related PIMCO offerings on the LSE: the PIMCO US Dollar Short Maturity UCITS ETF GBP Hedged Accumulation (MIST) and the PIMCO Sterling Short Maturity UCITS ETF (QUID), highlighting their distinct features for different currency preferences and risk management objectives. The role of the London Stock Exchange as a premier venue for ETF trading is also contextualized.
Ultimately, this revised report aims to equip investors with a thorough understanding of the MINT ETF, not only as a short-duration investment but also as a potential cash management tool, weighed against alternatives and its own specific characteristics, including its non-alignment with specific ESG mandates.
Pacific Investment Management Company LLC (PIMCO) is a globally recognized investment manager with a strong specialization in fixed income. The firm's investment process is described as vehicle-agnostic, combining macroeconomic insights with rigorous bottom-up analysis, a methodology honed over several decades.
PIMCO's active Exchange Traded Funds (ETFs) are managed by the same portfolio management teams and leverage the same extensive credit research resources, proprietary analytical tools, and risk management frameworks that are applied across the firm's substantial assets under management, which stood at $2.01 trillion as of September 30, 2024. This consistency ensures that investors in PIMCO ETFs are accessing the firm's core investment expertise.
Short-maturity bond ETFs have gained prominence as tools for managing interest rate risk, providing portfolio liquidity, and serving as alternatives to traditional cash holdings or money market funds. These instruments typically invest in debt securities with shorter timeframes to maturity, which generally makes them less sensitive to fluctuations in interest rates compared to longer-dated bonds. Their objectives often center on capital preservation and generating a modest income stream, making them suitable for investors with a lower risk tolerance or those seeking a temporary store for capital.
On the London Stock Exchange, PIMCO offers a suite of short-term fixed income UCITS (Undertakings for Collective Investment in Transferable Securities) ETFs designed to meet various investor needs. This report focuses on three key offerings:
- PIMCO US Dollar Short Maturity UCITS ETF (MINT):Provides exposure to short-term US dollar-denominated debt.
- PIMCO US Dollar Short Maturity UCITS ETF GBP Hedged Accumulation (MIST):Offers exposure to the same underlying US dollar assets as MINT, but with the currency risk hedged back to British Pounds Sterling for UK-based investors.
- PIMCO Sterling Short Maturity UCITS ETF (QUID):Invests in short-term Sterling-denominated debt, catering directly to investors seeking GBP exposure. These ETFs are listed among PIMCO's offerings on the LSE.
The provision of these distinct short-maturity ETFs on the LSE indicates a strategic approach by PIMCO to serve a sophisticated investor base. By offering actively managed solutions tailored to different currency requirements - USD, GBP, and GBP-hedged USD exposure - PIMCO addresses the diverse needs of European investors.
The UCITS framework, under which these ETFs operate, is a critical aspect of their appeal. This regulatory standard is well-recognized across Europe for its robust investor protection measures, making UCITS-compliant funds a preferred choice for both retail and institutional investors.
Therefore, PIMCO is leveraging its extensive fixed income expertise to deliver customized, actively managed cash-alternative solutions within a respected European regulatory structure, thereby meeting varied investor demands for liquidity, capital preservation, and income across key currencies.
The PIMCO US Dollar Short Maturity UCITS ETF is the central subject of this analysis.
- Full Name:PIMCO US Dollar Short Maturity UCITS ETF. 3 Some platforms may use variations like "PIMCO ETFs Plc US Dollar Short Maturity UCITS ETF".
- LSE Ticker:MINT. It may trade under other tickers, such as PJSB, on different exchanges.
- ISIN:IE00B67B7N93.
- Issuer:The umbrella fund is PIMCO ETFs plc. The management company is PIMCO Global Advisors (Ireland) Limited, part of the Allianz Group, with Pacific Investment Management Company, LLC acting as the Investment Advisor.
- Inception Date:February 2011, with sources citing either the 22nd or 24th of the month.
- Domicile:Ireland.
- UCITS Compliance:Yes, the fund adheres to the UCITS regulations, providing a standardized framework for European investors.
The investment objective of MINT is consistently stated as seeking to generate maximum current income, consistent with the preservation of capital and the maintenance of daily liquidity. Some Key Information Documents (KIDs) further add the aim of "preserving and increasing the amount originally invested".
Its investment strategy involves active management of a diversified portfolio composed primarily of US dollar-denominated fixed income securities of varying maturities. A key characteristic is its focus on "investment grade" securities, which are generally considered to carry lower risk and typically offer lower income than non-investment grade securities.
The fund's weighted average maturity is not expected to exceed three years, and the average portfolio duration is typically managed to be up to one year, based on the Investment Adviser's interest rate forecasts. MINT may utilize derivatives, such as forwards or buy-back agreements, to gain market exposure and can invest without limit in mortgage-backed or other asset-backed securities.
While MINT is actively managed, it often uses a benchmark index for performance comparison purposes. The KID indicates an intention to measure performance against the FTSE 3-Month Treasury Bill Index, but explicitly states this index is not used to define portfolio composition. Other sources list "PIMCO US Dollar Short Maturity" as the index, or refer to category benchmarks like the "Morningstar US 0-1 Core exY".
The fund is managed by a team of experienced PIMCO professionals, including Jerome M. Schneider (since February 2011), Nathan Chiaverini (since March 2017), and Witkop Andrew (since March 2017).
The combination of active management by a seasoned team and a flexible mandate within the short-duration, investment-grade US dollar fixed income space allows MINT to adapt its portfolio positioning. This active approach means the fund is not constrained by the constituents of a passive index and can make tactical adjustments to duration, credit exposure, and security selection.
The reference to the FTSE 3-Month Treasury Bill Index as a performance comparator underscores the fund's conservative risk profile; it implies an objective to deliver returns modestly above those of cash equivalents while diligently managing associated risks. This positions MINT as an "enhanced cash" or "cash-plus" strategy, where active management is the primary driver for achieving its objectives, distinguishing it from many passively managed short-duration or money market ETFs.
The composition of MINT's portfolio reflects its investment strategy focused on liquidity, capital preservation, and income generation from short-maturity USD assets.
- Asset Allocation:The fund predominantly holds non-UK (USD) bonds and maintains a significant allocation to cash or cash equivalents. Data from various dates indicates that non-UK bonds typically constitute around 59% to 65% of the portfolio, with cash and equivalents making up approximately 32% to 40%. UK bonds usually represent a very small portion, around 0.5% to 1%. This allocation underscores the fund's primary focus on USD-denominated assets and its strategy of maintaining a substantial buffer for liquidity purposes.
- Top 10 Holdings:A notable feature of MINT's portfolio is the significant allocation to REPO (repurchase) agreements with major financial institutions. For instance, as of early May 2025, top holdings included REPO agreements with Deutsche Bank Securities Inc. (38.64%), BNP Paribas SA (25.39%), Citigroup Global Markets Inc. (22.23%), and BofA Securities Inc. (17.46%). The portfolio also includes short-term corporate paper from issuers such as Haleon UK Capital PLC and Toronto-Dominion Bank, as well as securities from entities like CPPIB Capital Inc and NRW Bank. The substantial concentration in REPO agreements with large, well-established banks highlights the emphasis on liquidity and typically low counterparty risk, although it does concentrate this risk among these specific institutions.
- Sector Allocation:Due to the high allocation to REPOs and bank-issued paper, the financial sector is heavily represented. Government and agency securities also form a part of the portfolio. Detailed breakdowns by specific GICS sectors are often limited in summary factsheets, with some sources noting sector weighting data as unavailable.
- Country Allocation:The portfolio is predominantly exposed to the United States. Other developed market exposures are also present, including the United Kingdom, Japan, Germany, and Canada, though allocations vary over time.
- Credit Quality:MINT invests exclusively in "investment grade" securities. Financial Times data has described the credit quality as "Mid", which, within an investment-grade framework, typically implies a blend of securities rated from BBB up to AAA. A detailed percentage breakdown by specific credit ratings (e.g., AAA, AA, A, BBB) for MINT is not consistently available across the reviewed materials. However, for context, PIMCO's Sterling Short Maturity UCITS ETF (QUID) has shown detailed breakdowns such as: AAA 55.73%, AA 11.21%, A 14.6%, BBB 18.46%, indicating the type of granularity PIMCO can provide.
- Average Duration/Maturity:The fund's investment policy states that its weighted average maturity is not expected to exceed 3 years, and its average portfolio duration will typically be up to one year. Data from Morningstar as of March 2025 indicated an extremely low effective duration of 0.08 years and an effective maturity of 0.12 years, suggesting a very conservative, short-term positioning at that time.
- Number of Holdings:The fund maintains a diversified portfolio, with the number of holdings generally ranging from around 400 to over 500.
The portfolio's significant reliance on REPO agreements with major global banks as its largest holdings is a defining characteristic. These instruments are highly liquid and generally considered low-risk, aligning with the fund's objectives.
However, this approach does concentrate counterparty risk among these specific financial institutions. The very short effective duration reported by Morningstar (0.08 years as of March 2025) indicates that the fund was, at that point, positioned extremely conservatively to minimize sensitivity to interest rate changes.
This aligns with its capital preservation goal, particularly in environments with potential interest rate volatility or market uncertainty, and demonstrates the active management approach in practice, potentially deviating from the broader policy limit of "up to one year" average duration based on market outlook. This means investors are gaining exposure that is very close to cash equivalents in terms of interest rate risk, but with the potential for a slightly enhanced yield derived from PIMCO's active management of credit and instrument selection within the REPO and short-term bond market.
Assessing the performance and risk of MINT requires careful consideration of reporting currencies and data sources.
Performance figures for MINT can vary depending on the source, reporting date, and whether returns are presented in the fund's base currency (USD) or another currency (e.g., EUR for some European platforms).
- For example, Hargreaves Lansdown reported USD performance as of May 2025: 1-month 0.01%, 3-month 0.12%, 1-year 0%, 3-year 0.61%, and 5-year 0.26%. (Note: These figures appear low and may reflect specific reporting conventions or periods).
- Investing.com, referring to a US-listed PIMCO MINT ETF (which may differ from the UCITS version), showed YTD +1.35%, 1-year +5.11%, 3-year +4.67%, and 5-year +2.88% as of its reporting date.
- It is crucial for investors to consult official PIMCO documentation for the most accurate and relevant USD-denominated performance figures for the UCITS MINT ETF.
The KID for MINT classifies the product as a 2 out of 7 on the risk scale, indicating a low-risk class. This rating is consistent with a short-duration, investment-grade bond fund. Morningstar data showing an effective duration of 0.08 years further implies very low interest rate risk.
Some third-party platforms reporting in EUR have shown 1-year volatility figures around 7.99% and maximum drawdowns of approximately -10.37% for MINT. Such figures, if reflecting EUR-reported data for a USD fund, would also capture USD/EUR exchange rate volatility. The intrinsic volatility of MINT in its base currency (USD) is expected to be considerably lower, aligning with its capital preservation objective.
MINT is a distributing ETF 4, making payments to shareholders on a monthly basis.
- The 12-month yield was reported by Morningstar at 4.98% as of May 2025. JustETF reported a current dividend yield of 5.24% (though this may be a EUR-denominated representation). PIMCO also periodically announces per-share dividend distribution amounts.
The stated low risk (2/7 on the KID) and the very short effective duration (0.08 years from Morningstar) are key indicators of the fund's conservative nature. When performance or volatility is viewed in a currency different from the fund's base currency (USD for MINT), such as EUR, exchange rate fluctuations can introduce additional volatility not reflective of the underlying portfolio's risk in USD terms.
This underscores the importance for investors to analyze performance and risk metrics in the fund's base currency to accurately assess its characteristics. For a European investor whose base currency is not USD, holding the unhedged MINT ETF would mean exposure to USD/EUR foreign exchange movements, in addition to the fund's intrinsic USD volatility.
This highlights the necessity for investors to understand the currency of the underlying assets and the reporting currency of performance data, and to consider currency-hedged share classes (like MIST, discussed later) if they wish to mitigate such foreign exchange risk. The monthly distribution feature is an attractive aspect for investors seeking regular income.
The costs associated with MINT and its trading characteristics on the LSE are important considerations for investors.
The TER, also referred to as the Ongoing Charge (OCF), for MINT is consistently reported as 0.35% per annum.
The management fee is also 0.35%. An indicative spread of 0.05% has been noted. 10 The KID provides a scenario for an investment of USD 10,000, suggesting potential entry costs of up to USD 290 and ongoing costs (management fees and other administrative/operating costs) of 0.2% of the investment's value per year, plus transaction costs for underlying investments (e.g., USD 4 for a USD 10,000 investment).
The 0.35% TER/OCF is the most commonly cited figure by third-party data providers and typically encompasses management fees and other operational expenses. Some reports have indicated temporary fee waivers that could lower this, for example, to 0.20% until May 2025, after which it might revert to a contractual rate like 0.21% if the waiver isn't extended.
- Trading Currency:MINT trades in USD on the London Stock Exchange.
- Market Segment:The LSE company page for MINT indicates its market segment is "EUET". This segment, "ETFS - Euroclear Bank settlement," is designated for ETFs listed in Europe that are settled via Euroclear Bank.
- Typical Bid-Ask Spread:An indicative spread of 0.05% has been reported. Live bid/ask prices are available on the LSE during trading hours (e.g., 100.12 / 100.00), from which the current spread can be calculated.
- Trading Volumes/Liquidity:The LSE provides daily trading volume data (e.g., 3,076 units for MINT on a specific day). The fund's substantial size (e.g., Fund size GBP 1.64 billion, Share class size GBP 1.56 billion as of March/April 2025) is indicative of good underlying liquidity for the creation and redemption process by authorized participants, which should translate to robust on-exchange liquidity.
The Net Asset Value (NAV) is calculated daily. The LSE company page and PIMCO announcements provide NAV updates, including currency and date (e.g., MINT NAV USD 100.03 on May 1, 2025).
The LSE market segment "EUET" is significant for MINT. While the fund is domiciled in Ireland (an EU member state), its settlement via Euroclear Bank, as denoted by this segment, facilitates efficient cross-border trading and holding for a wide array of European investors, not just those based in the UK.
This operational detail is key for market participants and broadens the ETF's accessibility. The substantial Assets Under Management (AUM) further support the likelihood of good on-exchange liquidity, as a large AUM generally allows authorized participants to create and redeem shares efficiently, helping to keep the ETF's market price close to its NAV.
PIMCO's decision to structure MINT with an Irish domicile and ensure Euroclear Bank settlement is a strategic choice aimed at maximizing its appeal and tradability across the diverse European investor landscape.
Table 1: PIMCO US Dollar Short Maturity UCITS ETF (MINT) - Key Fund Details
| Feature | Details |
| Full Name | PIMCO US Dollar Short Maturity UCITS ETF |
| ISIN | IE00B67B7N93 |
| LSE Ticker | MINT |
| Issuer | PIMCO ETFs plc |
| Investment Advisor | Pacific Investment Management Company, LLC |
| Fund Manager(s) | Jerome M. Schneider, Nathan Chiaverini, Witkop Andrew |
| Inception Date | February 2011 |
| TER/Outgoing Charge | 0.35% p.a. |
| Base Currency | USD |
| Trading Currency (LSE) | USD |
| AUM (Fund, approx.) | GBP 1.64 billion (equivalent to approx. USD 2.08 billion as of March 2025) |
| Latest NAV (USD) & Date | USD 100.03 (01 May 2025) |
| Distribution Policy | Distributing |
| Distribution Frequency | Monthly |
| Stated benchmark (Comparison) | FTSE 3-Month Treasury Bill Index |
| UCITS Compliance | Yes |
| Domicile | Ireland |
| LSE Market Segment | EUET (ETFS - Euroclear Bank settlement) |
Note:AUM figures can fluctuate and may be reported differently by various sources (e.g., fund level vs. share class level, different currencies). The figure provided is indicative of the fund's substantial size.
Table 2: MINT ETF - Top 10 Holdings (Illustrative as of May 2, 2025)
| Holding Name | % Portfolio Weight/Security Type (Likely) |
| DEUTSCHE BANK SECURITIES INC REPO | 38.64%/REPO Agreement |
| BNP PARIBAS SA REPO | 25.39%/REPO Agreement |
| CITIGROUP GLOBAL MARKETS INC REPO | 22.23%/REPO Agreement |
| BOFA SECURITIES INC REPO | 17.46%/REPO Agreement |
| STATE STREET/FICC REPO | 5.55%/REPO Agreement |
| HSBC BANK PLC REPO | 4.097%/REPO Agreement |
| JP MORGAN SECURITIES LLC REPO | 1.71%/REPO Agreement |
| GOLDMAN SACHS & CO REPO | 1.36%/REPO Agreement |
| HALEON UK CAPITAL PLC 3.125% 24-MAR-2025 | 0.86%/Corporate Bond |
| TORONTO-DOMINION BANK 0% 22-JAN-2025 | 0.71%/Corporate Bond |
Holdings are subject to change.
Table 3: MINT ETF - Asset Allocation (Illustrative as of March/April 2025)
| Asset Class | % Net Assets (Approx.) |
| Non-UK Bond | 59.29% - 64.51% |
| Cash | 32.43% - 39.78% |
| UK Bond | 0.49% - 1.03% |
| Other | 0.44% - 2.04% |
| UK Stock | 0.00% |
| Non-UK Stock | 0.00% |
The PIMCO US Dollar Short Maturity UCITS ETF (MINT) is often considered by investors looking for a place to "park" cash temporarily while awaiting other investment opportunities or seeking a low-risk, liquid investment.
- Potential for Enhanced Yield:MINT aims to provide a competitive yield, potentially higher than traditional money market funds or very short-term government securities. This is often attributed to its active management and inclusion of short-duration investment-grade corporate bonds alongside government and agency securities. For instance, reports have indicated 7-day yields around 5.44% (as of March 2025) and 12-month dividend yields in the range of 4.79% to 5.24% (as of early May 2025).
- Active Management:PIMCO's active management means the fund managers can dynamically adjust the portfolio's duration, credit exposure, and security selection based on market conditions and interest rate forecasts. This flexibility can be advantageous in navigating interest rate fluctuations and identifying relative value opportunities within the short-term debt market.
- Liquidity and Convenience:As an ETF traded on the London Stock Exchange, MINT offers intraday liquidity, meaning it can be bought and sold throughout the trading day like an individual stock. This provides ease of access and exit for investors. It also offers instant diversification across a portfolio of hundreds of short-term debt securities.
- Income Distribution:MINT has a policy of distributing income to shareholders on a monthly basis, which can be appealing for investors seeking regular cash flow from their parked cash.
- Risk Profile:MINT is classified with a low-risk indicator (2 out of 7 on its KID). Its very short effective duration (e.g., 0.08 years as reported by Morningstar in March 2025 17) helps to significantly mitigate interest rate sensitivity. However, because MINT invests in corporate bonds (albeit investment-grade), it carries more credit risk than an ETF holding exclusively U.S. Treasuries. While generally stable, the fund did experience a decline of approximately 2.5% during the market stress of March 2020, primarily due to its corporate bond holdings.
- Costs:The Total Expense Ratio (TER) or Ongoing Charge (OCF) for MINT is 0.35% per annum. Some reports have mentioned temporary management fee waivers that could reduce the effective expense ratio (e.g., to 0.20% until May 2025, potentially reverting to a contractual rate like 0.21% thereafter if not extended). These costs are an important factor when comparing MINT to potentially lower-cost passive options or direct Treasury holdings.
When considering parking cash, a common alternative to short-duration bond ETFs like MINT is investing directly in short-term U.S. Treasury bills or through ETFs that exclusively hold them.
- U.S. Treasuries:Short-term U.S. Treasuries (e.g., 1-month or 3-month T-bills) are backed by the full faith and credit of the U.S. government, making them virtually free of default risk and one of the safest options for capital preservation. The market for U.S. Treasuries is also extremely liquid.
- MINT ETF:MINT invests primarily in investment-grade securities, which carry a higher degree of safety than non-investment grade bonds, but they are subject to credit risk from corporate issuers. As an ETF, MINT itself offers good trading liquidity on the LSE.
- MINT:As noted, MINT has offered dividend yields in the range of approximately 4.79% to 5.44% based on various metrics and reporting dates in early to mid-2025. This is due to its active management and inclusion of corporate credit.
- Short-Term U.S. Treasuries:As of early May 2025, 1-month U.S. Treasury rates were around 4.24% to 4.38%, and 3-month Treasury rates were approximately 4.22% to 4.33%. 6-month Treasury bill yields were around 4.21% to 4.24%. These yields are competitive but can be slightly lower than what an actively managed fund like MINT, which takes on credit risk, might offer.
- MINT:TER of 0.35% (with potential temporary waivers).
- Direct Treasuries:No management fees if bought directly (e.g., via TreasuryDirect), though brokerage transaction costs may apply.
- Short-Term Treasury ETFs:These passive ETFs tend to have very low expense ratios, some as low as 0.03% to 0.1356%.
- MINT:Offers active management by PIMCO, allowing for adjustments to duration, credit, and security selection to navigate market conditions and potentially enhance returns.
- Direct Treasuries/Treasury ETFs:Holding individual T-bills requires managing purchases and reinvestment. Passive Treasury ETFs simplify this by automatically rolling over underlying securities but do not offer active adjustments beyond tracking their specific short-term Treasury index.
While there are no major scandals or explicitly unethical activities directly linked to the MINT ETF, certain aspects may be considered negatives or raise concerns for some investors, particularly regarding sustainability and market risks.
- Not a Dedicated ESG Fund:MINT is generally classified with a "Sustainability: No" label by platforms like JustETF, indicating it is not marketed or structured as a dedicated ESG (Environmental, Social, Governance) investment product.
- Potential SRI Exclusions:Data from sources like ETFDB.com suggests that MINT has exposure to categories that might be excluded by some Socially Responsible Investing (SRI) screens. One report indicated an "SRI Exclusion Criteria (%)" of 9.54%, implying that a portion of its holdings could fail certain ethical screening criteria for some investors. The fund may have exposure to issuers involved in areas such as fossil fuels, or with potential human rights, labor norm violations, weapons, tobacco, alcohol, and gambling, although specific exposure levels to "severe controversies" are not always detailed.
- Reporting Inconsistencies:While some reports suggest MINT incorporates "ESG Integration" by screening corporate holdings for environmental and governance metrics, the more prevalent information and fund classifications point to it not being a dedicated ESG fund.
- Overseas Product:It's noted that the product is domiciled in Ireland and is not subject to UK sustainable investment labelling and disclosure requirements.
Investors with strong ESG or ethical mandates should carefully review MINT's holdings and third-party ESG ratings to determine if it aligns with their specific criteria.
- Market Risk Exposure:Like all investments, MINT is subject to market risks. Its value can fluctuate due to market movements.
- Credit and Default Risk:As MINT invests in corporate bonds (even if investment-grade), it is exposed to credit risk (the risk that an issuer may not be able to make payments) and default risk. The concentration in REPO agreements also introduces counterparty risk to the specific financial institutions involved.
- Performance During Stress:During the pandemic-driven market stress in March 2020, MINT experienced a decline of approximately 2.5%, primarily attributed to its holdings in short-dated corporate bonds. It also reportedly underperformed its typical peer in 2022.
- KID Disclosures:The Key Information Document (KID) for MINT outlines various risks, including those related to market movements, credit/default, derivatives, counterparty risk, and mortgage/asset-backed securities. While it has a low-risk indicator (2 out of 7), stress scenarios in the KID illustrate potential for losses.
These factors do not constitute controversies in the sense of wrongdoing but are important considerations regarding the fund's risk profile and alignment with specific investor preferences.
PIMCO offers a suite of short-term maturity ETFs on the LSE, catering to different currency preferences and hedging needs. Besides MINT, the two primary related ETFs are MIST and QUID.
The PIMCO US Dollar Short Maturity UCITS ETF GBP Hedged Acc (MIST) is designed for investors, particularly those in the UK, who seek exposure to MINT's underlying strategy of investing in short-term US dollar-denominated fixed income securities but wish to mitigate the currency risk between the US dollar and British Pound Sterling.
- Key Features:MIST is also an actively managed UCITS ETF. It invests in a diversified portfolio of USD-denominated fixed-income securities, similar to MINT. However, its returns are hedged back to GBP, and it follows an accumulating distribution policy, meaning any income generated is reinvested within the fund rather than paid out.
- ISIN & Ticker (LSE):ISIN IE00BK9YKZ79, LSE Ticker MIST.
- Objective: Similar to MINT, it aims to generate maximum current income, consistent with capital preservation and daily liquidity.
- TER:The Total Expense Ratio for MIST is 0.40% per annum. This is higher than MINT's 0.35% TER.
- Inception Date:September 25, 2019, making it a more recently launched fund compared to MINT. (Note: Some sources like HL 11 incorrectly list MIST's inception as Feb 2011, which is MINT's inception).
- AUM:MIST generally has a smaller AUM compared to MINT. For example, JustETF reported an AUM of EUR 2 million, while FT.com noted a share class size of GBP 4.99 million as of April 2025.
- Fund Currency/Trading Currency (LSE):The share class currency and trading currency on the LSE is GBP.
- Benchmark:The benchmark is often cited as "PIMCO US Dollar Short Maturity (GBP Hedged)". The underlying investment strategy mirrors MINT, which uses the FTSE 3-Month Treasury Bill Index for performance comparison.
- Target Investor:MIST is primarily aimed at UK-based investors or others with a GBP functional currency who want exposure to the US short-duration bond market without taking on direct USD/GBP currency fluctuations, and who prefer capital growth through reinvestment of income.
The higher TER for MIST (0.40%) compared to MINT (0.35%) is a direct consequence of the currency hedging overlay. Implementing and maintaining a currency hedge involves additional transactional and operational costs, such as those associated with forward currency contracts.
This 0.05% (5 basis points) difference in TER represents the approximate cost passed on to investors for the service of hedging the USD exposure back to GBP. Investors therefore face a clear choice: opt for MIST with its higher TER to achieve a GBP-hedged return profile, or select the unhedged MINT with a lower TER but personally bear the risk (and potential reward) of USD/GBP exchange rate movements.
The availability of MIST demonstrates PIMCO's responsiveness to specific investor demands for currency risk management, allowing UK investors to access the core USD strategy while mitigating unwanted foreign exchange volatility, albeit at a marginally increased annual cost.
The PIMCO Sterling Short Maturity UCITS ETF (QUID) offers a direct approach for investors seeking exposure to the short-term British Pound Sterling fixed income market.
- Key Features:QUID is an actively managed UCITS ETF that invests primarily in a diversified portfolio of short-term, investment-grade fixed income securities denominated in GBP. It aims to maximize current income while preserving capital and maintaining a high degree of liquidity.
- ISIN & Ticker (LSE):ISIN IE00B622SG73, LSE Ticker QUID.
- Objective:To maximize current income consistent with the preservation of capital and a high degree of liquidity.
- TER:The TER for QUID is 0.19% per annum. This is notably lower than both MINT and MIST.
- Inception Date:June 2011 (either 10th or 15th, depending on the source).
- AUM:QUID's AUM is generally smaller than MINT's, with figures around GBP 84 million to GBP 93 million reported.
- Fund Currency/Trading Currency (LSE):The fund currency and trading currency on the LSE is GBP.
- Benchmark:While actively managed, QUID is often compared against indices such as the ICE BofAML Sterling Government Bill TR GBP.
- Holdings:The portfolio focuses on UK government and corporate debt, as well as REPO agreements. For example, LSE data showed top holdings including "UNITED KINGDOM (GOVERNMENT OF) REPO" (16.43%) and UK Gilts. Interestingly, some sources indicate that QUID may also hold securities priced in other currencies, which are then generally hedged back to Sterling, allowing for broader diversification opportunities.
- Target Investor:QUID is primarily suited for UK investors or those with GBP as their base currency who are looking for an actively managed, short-duration fixed income solution directly in Sterling.
QUID's significantly lower TER of 0.19% is a key differentiator when compared to MINT's 0.35% and MIST's 0.40%. This cost advantage could stem from several factors. Managing a portfolio predominantly in a single, local currency (GBP for QUID, from the perspective of a UK-centric fund offering) might entail fewer operational complexities.
For instance, there are no inherent cross-currency hedging costs as with MIST, and access to local market instruments may be more straightforward. Additionally, competitive dynamics within the GBP short-duration market could exert downward pressure on fees.
While QUID's AUM is smaller than MINT's, its specific investment strategy within the GBP market might allow for more cost-effective execution. This lower fee structure directly benefits investors by reducing the drag on returns, an especially pertinent consideration for low-yielding short-duration funds where every basis point of cost can materially impact net performance.
To clarify the distinctions between these three PIMCO short-term ETFs traded on the LSE, the following table provides a comparative summary:
Table 4: PIMCO Short-Term ETFs on LSE - Key Profile Comparison
| Feature | PIMCO US Dollar Short Maturity UCITS ETF (MINT) |
| Primary ISIN | IE00B67B7N93 |
| LSE Ticker | MINT |
| Base Currency of Underlying Assets | USD |
| Share Class Currency (LSE) | USD |
| Currency Hedging | No |
| TER/Ongoing Charge (%) | 0.35% |
| AUM (Approx. Fund/Share Class) | ~USD 2.08bn / ~GBP 1.56bn |
| Inception Date | Feb. 2011 |
| Distribution Policy | Distributing |
| Distribution Frequency | Monthly |
| Primary Investment Focus | Short-term USD Inv. Grade Debt |
| Feature | PIMCO US Dollar Short Maturity UCITS ETF GBP Hedged Acc (MIST) |
| Primary ISIN | IE00BK9YKZ79 |
| LSE Ticker | MIST |
| Base Currency of Underlying Assets | USD |
| Share Class Currency (LSE) | GBP |
| Currency Hedging | Yes (USD to GBP) |
| TER/Ongoing Charge (%) | 0.040% |
| AUM (Approx. Fund/Share Class) | ~EUR 2m / ~GBP 4.99m |
| Inception Date | Sep 2019 |
| Distribution Policy | Accumulating |
| Distribution Frequency | - (Accumulating) |
| Primary Investment Focus | Short-term USD Inv. Grade Debt (GBP Hedged) |
| Feature | PIMCO Sterling Short Maturity UCITS ETF (QUID) |
| Primary ISIN | IE00B622SG73 |
| LSE Ticker | QUID |
| Base Currency of Underlying Assets | GBP |
| Share Class Currency (LSE) | GBP |
| Currency Hedging | No (primarily GBP assets) |
| TER/Ongoing Charge (%) | 0.19% |
| AUM (Approx. Fund/Share Class) | ~GBP 84-93m |
| Inception Date | Jun 2011 |
| Distribution Policy | Distributing |
| Distribution Frequency | Monthly |
| Primary Investment Focus | Short-term GBP Inv. Grade Debt |
The London Stock Exchange (LSE) has established itself as a leading European hub for Exchange Traded Funds (ETFs) and other Exchange Traded Products (ETPs). Since the first ETF listing in April 2000, the market has grown substantially, with ETPs now accounting for approximately 20% of the LSE's daily turnover as of early 2025. This growth reflects the increasing demand for transparent, cost-effective, and flexible investment solutions.
The LSE's ETF market is characterized by robust liquidity and a sophisticated market structure. Trading is supported by a significant number of market makers - were noted in early 2025 - who are pivotal in providing continuous two-way pricing and facilitating efficient trading. The LSE has also introduced advanced trading functionalities, such as the 'RFQ 2.0' (Request for Quote) service, which offers auto-complete RFQ functionality and access to both visible and hidden liquidity pools, with direct central counterparty (CCP) clearing.
ETFs on the LSE typically trade on the SETS (Stock Exchange Electronic Trading Service) platform or dedicated ETP trading services, with settlement occurring through CCPs, which enhances efficiency and mitigates counterparty risk.
A key feature of the LSE is its support for multi-currency trading. ETFs can be traded in various currencies, including GBP (Sterling), EUR (Euro), USD (US Dollar), and CHF (Swiss Franc), among others. This capability is particularly relevant for international issuers like PIMCO, allowing them to offer their products in currencies that suit a diverse investor base.
From a regulatory perspective, ETFs listed and traded on the LSE's Main Market generally adhere to high standards. Many, including the PIMCO ETFs discussed, are UCITS compliant, a framework recognized across Europe for its investor protection measures. The UK's Financial Conduct Authority (FCA) is responsible for approving listing particulars and authorizing or recognizing collective investment schemes, while the LSE is responsible for admitting securities to trading on its Main Market.
The PIMCO ETFs MINT, MIST, and QUID are listed under the "EUET" market segment code on the LSE. This segment is designated for ETFs listed in the EU (Ireland, in this case) that are settled via Euroclear Bank. This settlement mechanism is crucial as it facilitates easier cross-border trading and holding for a broad range of European institutional and retail investors.
For investors, the LSE provides an accessible and transparent platform for trading ETFs. These instruments trade like individual stocks, offering intra-day pricing and liquidity.
The combination of multiple market makers, advanced trading systems, multi-currency options, and a strong regulatory (UCITS) environment makes the LSE an attractive and efficient venue. The LSE's ecosystem is a critical enabler for the growth of the European ETF market, allowing sophisticated products like PIMCO's actively managed short-duration ETFs to connect efficiently with investor demand across the continent.
When considering an investment in PIMCO's short-duration bond ETFs like MINT, MIST, or QUID, or using MINT for cash parking, several factors warrant careful attention:
These ETFs are generally designed for capital preservation, liquidity management, and providing lower volatility compared to longer-duration bonds. They can serve as a core holding for conservative investors, a tool for managing cash (parking money), or a tactical allocation during periods of interest rate uncertainty, potentially offering slightly higher returns than traditional money market funds.
PIMCO's MINT, MIST, and QUID are all actively managed. 3 Active management in the short-duration space allows portfolio managers to adjust duration, credit exposure, and security selection in response to changing market conditions and interest rate outlooks. This can be beneficial, particularly in complex or volatile markets.
However, active management typically comes with higher expense ratios compared to purely passive, index-tracking alternatives. While MINT and MIST have TERs of 0.35% and 0.40% respectively, QUID's TER of 0.19% is more competitive with some passive strategies.
Investors should always review the latest Key Information Document (KID) or Key Investor Information Document (KIID) and the full prospectus for any ETF before investing. These documents provide essential details on the fund's objectives, investment policy, risks, costs, and historical performance, as mandated by law.
The choice between MINT, MIST, and QUID significantly depends on an investor's base currency and their approach to foreign exchange (FX) risk.
- MINT (USD underlying, USD share class) exposes a non-USD based investor (e.g., a UK investor) to fluctuations in the USD/GBP exchange rate.
- MIST (USD underlying, GBP-hedged share class) aims to mitigate this USD/GBP FX risk for Sterling-based investors, but this hedging service comes at the cost of a higher TER.
- QUID (GBP underlying, GBP share class) offers direct exposure to Sterling-denominated short-term assets, eliminating FX risk for GBP-based investors investing in their local currency market.
While these ETFs focus on investment-grade securities, credit risk (the risk that an issuer will be unable to make principal or interest payments) and default risk are still present. The concentration in REPO agreements also introduces counterparty risk to the specific financial institutions involved.
Short duration significantly mitigates interest rate risk (the risk that bond prices will fall as interest rates rise). However, it does not eliminate it entirely. The prices of even short-term bonds can be affected by changes in interest rate expectations.
While ETFs traded on major exchanges like the LSE offer good secondary market liquidity, this is distinct from the liquidity of the underlying bonds in their respective markets. PIMCO's active management includes navigating the liquidity of these underlying assets. The substantial AUM of MINT, for example, generally supports efficient creation and redemption by authorized participants, which underpins on-exchange liquidity.
As discussed, MINT is not a dedicated ESG fund and may hold investments that do not align with all investors' ethical or sustainability criteria. Investors with specific ESG mandates should conduct thorough due diligence.
The decision between MINT, MIST, and QUID, or using MINT for cash parking versus U.S. Treasuries, fundamentally rests on an investor's individual circumstances, particularly their base currency, risk tolerance, yield expectations, cost sensitivity, and view on, or tolerance for, foreign exchange risk and credit risk.
The PIMCO US Dollar Short Maturity UCITS ETF (MINT) is an actively managed, short-duration fixed income solution traded on the London Stock Exchange, designed for current income, capital preservation, and daily liquidity. Its active management by PIMCO allows for tactical adjustments to navigate evolving market conditions.
MINT can be a suitable option for parking cash if an investor is seeking potentially higher yields than direct short-term U.S. Treasuries or traditional money market funds, and values the benefits of active management and ETF liquidity. However, this comes with a slightly higher credit risk profile due to its investment-grade corporate bond holdings and a higher expense ratio (0.35% TER) compared to passive short-term Treasury ETFs (which can be as low as 0.03%-0.13%).
If the absolute priority is maximum capital safety with minimal cost, direct short-term U.S. Treasuries or the lowest-cost passive Treasury ETFs would be more appropriate, even if it means a slightly lower yield. Current yields on 1-3 month U.S. Treasuries (around 4.22%-4.38% as of early May 2025) are competitive, and the choice will depend on an investor's risk/reward appetite for the potential yield pickup offered by MINT's credit exposure and active management.
Investors should note that MINT is not marketed as an ESG fund and may hold securities that do not align with strict socially responsible investing criteria.
PIMCO's suite, including the GBP-hedged MIST and Sterling-focused QUID, offers tailored solutions for different currency and risk preferences within the UCITS framework. The London Stock Exchange provides an efficient trading venue.
MINT is a well-structured, actively managed option for investors comfortable with its USD exposure and investment-grade credit risk, seeking enhanced yield potential over pure cash or Treasuries for short-term investment or cash parking. Its suitability for parking cash hinges on an individual's tolerance for slightly higher risk and cost in pursuit of potentially higher returns compared to the utmost safety of U.S. Treasuries.
For UK investors concerned about USD/GBP currency risk, MIST offers a hedged alternative, while QUID provides direct GBP short-term exposure with a lower TER. A thorough review of the relevant Key Information Document (KID) and prospectus is essential before making any investment decision.