Say hello to our latest addition – the high yield ETF, designed to let your cash work harder for you. Get ready to seize the chance to earn up to an impressive 5% annually by investing in the PIMCO Euro Short-Term High Yield Corporate Bond Index UCITS ETF.
Reignite Your Earnings
Have you been missing the chance to earn that extra percentage on your cash through Growth Pocket? We've heard your feedback, and we're here to bring back a new and exciting way for your money to thrive – introducing the high yield ETF. This instrument gives you the potential to earn up to 5% annually, offering an opportunity to transform your idle funds into a powerful source of growth.
Seamless Investing
So, how does this high-yield ETF work? It's as easy as 1-2-3:
- Deposit to your Change account: Start by depositing your funds into your Change account. Your funds are secure and accessible whenever you need them.
- Access the "Cash %" tab: Head over to the "Cash %" tab on the app to explore the PIMCO Euro Short-Term High Yield Corporate Bond Index UCITS ETF. If you haven't already, complete our quick test to ensure this option is suitable for you.
- Invest and earn: Once you're ready, take the leap and invest in the high yield ETF. By doing so, you open the door to earning up to 5% annually on your investment. And the best part? Your earnings are delivered right to you at the beginning of each month.
Empower Your Finances
Don't let your hard-earned cash sit idly by. Embrace the power of the PIMCO Euro Short-Term High Yield Corporate Bond Index UCITS ETF and watch your money flourish. Whether you're looking to grow your savings, invest for the future, or make your money work for you, this new instrument offers a path to achieve your financial goals.
Ready to take the next step? Discover the world of high yield investing with the Change app.
FAQ
What is PIMCO Euro Short-Term High Yield Corporate Bond Index UCITS ETF?
Why should I invest in the PIMCO Euro Short-Term High Yield Corporate Bond Index UCITS ETF?
Investing in the PIMCO Euro Short-Term High Yield Corporate Bond Index UCITS ETF can provide diversification within the fixed-income market, particularly for investors seeking exposure to higher-yielding bonds within the eurozone.
When can I buy or sell PIMCO Euro short-term high-yield corporate bond Index UCITS ETF?
This ETF has limited trading hours. You can buy or sell it between 07:00 and 15:30 GMT each day.
How do I deposit EUR into my Change account to invest in this ETF?
- Open the Change app and tap 'Deposit'. Choose any preferable method - bank transfer, card, Apply Pay or crypto. If it's your first deposit, it has to be a bank transfer.
- Once the funds hit your Change account, transfer them from "Crypto" to "Stocks, Indices & Margin". After that, you can invest in an ETF.
How is the yield for this ETF calculated?
PIMCO Euro Short-Term High Yield Corporate Bond Index UCITS ETF is paying out floating yield. Floating yield is a dynamic aspect of certain ETFs that can result in changing income distributions for investors. It's important to recognize that this variability is influenced by factors like interest rates, market conditions, and credit quality.
Let's use an example to illustrate: If you invest €10,000 in the ETF and the stated APY (Annual Percentage Yield) is 4.13%*.
To calculate the potential monthly reward, you would follow these steps:
Convert the annual APY to a monthly rate: 4.13% / 12 months=0.3433% per month.
Calculate the monthly reward: €10,000 * 0.3433%=€34.33.
So, in this example, if you invested €10,000 in the PIMCO Euro Short-Term High Yield Corporate Bond Index UCITS ETF and the APY is about 4.13%, you could potentially receive a monthly reward of approximately €34.33. Keep in mind that this is a simplified calculation, and actual returns can vary due to factors like market conditions, changes in the ETF's yield, and fees.
Let's use an example to illustrate: If you invest €10,000 in the ETF and the stated APY (Annual Percentage Yield) is 4.13%*.
To calculate the potential monthly reward, you would follow these steps:
Convert the annual APY to a monthly rate: 4.13% / 12 months=0.3433% per month.
Calculate the monthly reward: €10,000 * 0.3433%=€34.33.
So, in this example, if you invested €10,000 in the PIMCO Euro Short-Term High Yield Corporate Bond Index UCITS ETF and the APY is about 4.13%, you could potentially receive a monthly reward of approximately €34.33. Keep in mind that this is a simplified calculation, and actual returns can vary due to factors like market conditions, changes in the ETF's yield, and fees.
How can I get a dividend from this ETF?
To start earning monthly dividend from PIMCO Euro Short-Term High Yield Corporate Bond Index UCITS ETF, you need to open position and make sure that you keep it open until ‘Ex-Dividend Date’ (the date when you are being considered to receive dividend based on the number of shares you own). In 2023, the ex-dividend date is on every 3rd Thursday of the month:
- September 21, 2023
- October 19, 2023
- November 15, 2023
- December 21, 2023
When will I receive my dividends?
The payout is distributed monthly and based on the amount of money you have invested. Your dividend will get paid on the first days of the next month you bought the ETF.
Ensure you buy this ETF before the ex-dividend date to receive a reward next month.Purchases on or after this date will not receive the distribution. For example, if you buy an ETF after September 21, your next reward will be credited only in November.
Ensure you buy this ETF before the ex-dividend date to receive a reward next month.Purchases on or after this date will not receive the distribution. For example, if you buy an ETF after September 21, your next reward will be credited only in November.
Where can I see the received dividend in my account?
Dividend payout is made directly to your Stocks, Indices & Margin account (in euros).
Feel free to reinvest these funds in the same ETF or explore other margin instruments like indices, stocks and commodities with leverage.
Feel free to reinvest these funds in the same ETF or explore other margin instruments like indices, stocks and commodities with leverage.
Is there a minimum or maximum amount I can invest in this ETF?
The minimum amount you can invest is €10, and there is no limit on the maximum amount you can invest.
What are the risks associated with this ETF?
As with any investment, there are risks to consider. This ETF is exposed to the risks of the underlying bonds, including credit risk, interest rate risk, and market risk. High-yield bonds can be more volatile and susceptible to economic downturns. Additionally, changes in interest rates can impact bond prices. It's important to carefully review the ETF's prospectus for a comprehensive understanding of its risks.
What are the costs associated with this ETF?
There is no fee and no overnight swap fee associated with PIMCO Euro Short-Term High Yield Corporate Bond Index UCITS ETF.
