Active ETFs for Liquidity Management and Capital Preservation

Amid money market reform and the New Neutral reality of “lower for longer” interest rates, investors and asset managers are adapting to a paradigm shift in liquidity management. Active short-duration ETFs like PIMCO’s MINT and LDUR emphasize capital preservation but have the flexibility to tap pockets of value outside the benchmark, with a risk-focused approach that helps limit volatility. These attributes, along with ETFs’ portfolio and price transparency and lack of liquidity gates, may appeal to investors looking for alternatives to money market funds and who seek to protect their purchasing power.