What does leveraged daily exposure mean for PIMCO Ultra Short Government Active Exchange-Traded Fund?

PIMCO Ultra Short Government Active Exchange-Traded Fund aims to deliver 2 times the daily return of PIMCO (short/inverse). The leverage resets each trading day, so multi-day returns can differ materially from 2X the underlying's cumulative return.

What is volatility decay and how does it affect PIMCO Ultra Short Government Active Exchange-Traded Fund?

Volatility decay (also called compounding drag) occurs because PIMCO Ultra Short Government Active Exchange-Traded Fund rebalances daily. In choppy, sideways markets the cumulative return can significantly trail 2X the underlying's period return — even if the underlying ends flat. The effect intensifies with higher leverage factors and longer holding periods.

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PIMCO Ultra Short Government Active Exchange-Traded Fund (BILZ) Price

Q: What is the ISIN of PIMCO Ultra Short Government Active Exchange-Traded Fund?

The ISIN of PIMCO Ultra Short Government Active Exchange-Traded Fund is US72201R5770.

PIMCO Ultra Short Government Active Exchange-Traded Fund Price

— EUR

TER0.14 %

AUM926.16 M USD

CurrencyUSD

Funds Launch6/22/2023

PIMCO Ultra Short Government Active Exchange-Traded Fund Price

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Underlying

PIMCO

PIMCO2X Short Daily

PIMCO

PIMCO Ultra Short Government Active Exchange-Traded Fund provides 2X inversedaily exposure to PIMCO.

Leverage & Compounding Risk

This ETF rebalances daily to achieve its 2X target. Over periods longer than one day, compounding can cause returns to deviate significantly from 2X the underlying's return — especially in volatile, sideways markets (volatility decay). This product is designed for short-term trading, not buy-and-hold investing.