ETF Chart of the Day: PIMCO Total Return (BOND)
May 1st 2012 at 11:07am by Paul Weisbruch, Street One Financial
An ETF that launched with much fanfare on March 1st of this year was PIMCO Total Return ETF (NYSEArca: BOND), as it has been lauded as an actively managed ETF brought to the investment public by the legendary PIMCO fixed income team led by none other than Bill Gross.
Carrying an expense ratio of 55 basis points, BOND also remains on the very low end in terms of pricing when compared to other actively managed ETFs on the market.
While not a direct spin off or a share class of the existing (and very successful) Total Return mutual fund (PTTAX), the fund has attracted nearly $600 million in a short amount of time since inception, and the fund already averages several hundred thousand shares per day from an average daily trading volume standpoint.
Additionally, in the early going, BOND has returned 1.87% since its inception versus PTTAX up 1.26% during the same time period. Current top holdings include U.S. Treasury Notes, FNMA bonds, U.S. Treasury Bonds and debt of Citigroup for instance.
The fund is certainly worth watching for those managing ETF portfolios, whether favoring an active or a passive slant, as the launch of BOND has marked a sea change in the ETF industry.
PIMCO Total Return ETF