PIMCO Commodity Strategy Active Exchange-Traded Fund (CMDT)

The PIMCO Commodity Strategy Active Exchange-Traded Fund is designed to provide investors with a diversified approach to commodity investing through an actively managed strategy. The fund aims to achieve its investment objective by utilizing commodity-linked derivative instruments, which are financial contracts that derive their value from the performance of underlying commodities. These derivatives are combined with an actively managed portfolio of fixed income securities, offering exposure to various maturities and credit qualities. The integration of these asset classes seeks to balance risk and return while targeting performance linked to commodity markets.

Under normal market conditions, the fund's investment strategy includes direct investments in physical commodities, such as metals, energy products, and agricultural goods, alongside its use of derivative instruments. This approach allows the fund to capture potential returns from commodity price movements while maintaining a diversified fixed income portfolio. The fixed income portion of the fund provides a stabilizing effect, helping to manage volatility and offer income through bonds of varying maturities, credit ratings, and sectors.

The fund’s actively managed nature allows the portfolio management team to make strategic adjustments based on market conditions and emerging opportunities. This flexibility is crucial in navigating the complexities of both commodity and fixed income markets.

As a non-diversified fund, the PIMCO Commodity Strategy Active ETF may concentrate its investments in a narrower range of asset types compared to more diversified funds. This concentrated approach can lead to higher potential returns but also increases the level of risk.