PIMCO Senior Loan Active Exchange-Traded Fund

LONZ

Market cap $692M

Overview Fund Activity

50.96 USD

+0.03

0.06%

At close Updated Sep 12, 4:00 PM EDT

1 day

0.06%

5 days

0.2%

1 month

0.31%

3 months

0.77%

6 months

1.31%

Year to date

-0.23%

1 year

-0.1%

5 years

1.88%

10 years

1.88%

0

Funds holding %

of 7,462 funds

–

Analysts bullish %

Fund manager confidence

Based on 2025 Q2 regulatory disclosures by fund managers ($100M+ AUM)

5.36% less ownership

Funds ownership: 86.84% [Q1] → 81.48% (-5.36%) [Q2]

26% less capital invested

Capital invested by funds: $816M [Q1] → $603M (-$213M) [Q2]

27% less funds holding

Funds holding: 81 [Q1] → 59 (-22) [Q2]

53% less repeat investments, than reductions

Existing positions increased: 14 | Existing positions reduced: 30

72% less first-time investments, than exits

New positions opened: 7 | Existing positions closed: 25

75% less funds holding in top 10

Funds holding in top 10: 4 [Q1] → 1 (-3) [Q2]

See Fund Rankings

Financial journalist opinion

LONZ: The Reward Is Not Commensurate With The Risk (Rating Downgrade)

Downgrade LONZ to 'Sell' as the current 6.11% yield is insufficient for single-B risk in today's macro environment. Fund's low historical drawdown (-4%) may not hold in a recession; expect up to -10% downside in economic contraction. High expense ratio and floating rate sensitivity mean yields will drop further when the Fed cuts rates, worsening risk/reward.

LONZ: The Reward Is Not Commensurate With The Risk (Rating Downgrade)

LONZ: Lower Fed Funds Make This Name A Hold (Rating Downgrade)

We are downgrading the PIMCO Senior Loan Active Exchange-Traded Fund to 'Hold' due to ongoing monetary easing and decreasing yields. The Fed's rate cuts have significantly lowered the yield curve, impacting LONZ's dividend yield, which is set to decline further. The Fund's overweight position in single-B credits, combined with historically low credit spreads, presents heightened risk in a potential recessionary scenario.

LONZ: Lower Fed Funds Make This Name A Hold (Rating Downgrade)

LONZ: A Throughout-The-Cycle Asset

The PIMCO Senior Loan Active ETF offers prudent exposure with low price risk and high-income attributes. LONZ's near-zero effective duration and diversified corporate bank loans portfolio mitigate interest rate sensitivity, which I deem beneficial in today's uncertain economic environment. Despite investing in non-investment-grade loans, LONZ's position in the debt waterfall structure, compelling forward dividend yield, and potential for enhanced net income translate into play into a favorable trajectory.

LONZ: A Throughout-The-Cycle Asset

LONZ: High Yield From Leveraged Loans

The LONZ ETF is an actively managed portfolio of leveraged loans. Adjusted for leverage, LONZ's performance appears identical to a passive leveraged loan ETF. With a looming economic slowdown, investors may want to consider higher credit-quality investments like the JAAA ETF.

LONZ: High Yield From Leveraged Loans

Business of Bonds: Senior Loan ETFs Take the Spotlight

The Federal Reserve continues to hold fast to its highly data-driven, wait-and-see approach on rate policy. Last week's FOMC meeting further bolstered the market's belief in a lone rate-cut scenario, and senior loan ETFs have gained traction as elevated rate expectations spill over into the second half of the year.

Business of Bonds: Senior Loan ETFs Take the Spotlight

LONZ: Under The Radar Fund From PIMCO, 7% Yield

LONZ: Under The Radar Fund From PIMCO, 7% Yield

Recapping the 2024 Fixed Income Symposium

A changing interest rate narrative prompted many advisors and investors to reevaluate their bond exposures this month. Asset managers stepped in to offer their perspectives on the changing market dynamics and where the risks and opportunities lie in the 2024 Fixed Income Symposium hosted by VettaFi.

Looking to Loan ETFs

Fixed income ETFs gathered $51 billion of new money in the first quarter. This represented 26% of the industry's net inflows.

See News Rankings

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