Evaluating PIMCO Total Return ETF Performance, Liquidity
May 4th 2012 at 9:44am by John Spence
Bond giant PIMCO says it has received a positive response from investors two months after the investment manager introduced an ETF version of the $252 billion Total Return Fund managed by Bill Gross.
PIMCO Total Return ETF (NYSEArca: BOND) has already gathered assets of nearly $700 million.
“We’ve received very good feedback on it. People have been pleased with the performance, pleased with the liquidity and trading volume,” said Natalie Zahradnik, ETF strategist at PIMCO, in a Financial Times story Friday. “Our general sense is that we are reaching people where we haven’t been able to reach before.”
She estimated the ETF has added a creation unit or two a day since its launch on March 1. A creation unit is 100,000 shares. [ETF of the Week: BOND]
The FT notes PIMCO Total Return ETF gained 1.78% in its first month, outperforming the 0.12% gain posted by its mutual fund counterpart. [ETF Chart of the Day: BOND]
BOND has quickly grown to one of the largest actively managed ETFs on the market. Earlier this week, PIMCO listed an active TIPS ETF. [PIMCO Rolls Out Global TIPS ETF]
In a recent interview with The Wall Street Journal, BOND manager Bill Gross said the ETF has “certainly exceeded our expectations.” [ETF Focus: PIMCO Total Return]
BOND has daily average volume of about 222,000 shares, according to MarketWatch.
“Our goal is to create broader access to the things we do, whether they are index funds or actively managed products, and it’s been somewhat gradual as we’ve gained familiarity and comfort with the ETF structure,” said Donald Suskind, head of ETF product management at PIMCO, in the FT article.
PIMCO Total Return ETF
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