Never underestimate Bill Gross
. The bond fund king still found a way to make money in the rising interest rate bond market. His ultrashort ETF fund, the $3.8 billion Pimco[profile] Enhanced Short Maturity ETF
had its assets grow $800 million in June, the WSJ
's Murray Coleman reported. The fund works as an alternative to money funds.
Gross' fund has an estimated yield to maturity of 0.95 percent in contrast to the average taxable money market fund's 0.01 percent yield. Last year the ETF had a return of 2.4 percent, but it can be volatile as the price fluctuate:
Benjamin Tobias, an adviser in Plantation, Fla.: "We haven't seen the type of volatility in prices that would make us want to stop using MINT, but like any ETF, it still has the potential to lose money."
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