According to Jerome Schneider, Head of Short-Term Portfolio Management at PIMCO, active bond ETFs provide a combination of income generation and capital appreciation potential as the fund has the flexibility to trade before a bond holding matures. PIMCO’s Schneider highlighted that relative to money market funds, ETF investors can not only benefit from higher yields through positions in Agency and high-investment-grade corporate bonds, but also from some capital appreciation achieved by a portfolio management team actively trading bonds before they reach maturity.