PIMCO is getting ready to launch three new actively managed exchange traded funds this year. The funds will follow the success of PIMCO Total Return ETF (NYSEArca: BOND).
“These three ETFs are designed to provide income and preserve purchasing power,” says Don Suskind, head of ETF product management at PIMCO, in a report. “They line up with what we think investors need.” [ETF Chart of the Day: PIMCO Total Return]
BOND, launched in February 2012, was the first actively managed ETF from the provider. The ETF has gathered about $5.3 billion in assets under management , compared to the sister mutual fund, PIMCO Total Return (PTTDX), that has $293 billion in AUM. [The Actively Managed ETF Landscape]
BOND has returned 14.2% since inception through May 8, compared to the mutual fund that has gained 8.5% over the same time period, reports Nellie Huang for Kiplinger. Bill Gross manages both the active ETF and the mutual fund. Gross is expected to co-manage the three new ETFs with other featured managers selected. [A Closer Look at the Active ETF Business]
- PIMCO Diversified Income ETF (NYSEArca: DI) managed by Curtis Mewbourne
- PIMCO Real Return ETF ETF – ticker n/a – managed by Mihir Worah
- PIMCO Low-Duration ETF (NYSEArca: LDUR) managed by Marc Seidner
All three ETFs follow in the wake of currently trading mutual funds that are successful, have long track records and are a leader in their respective category.
All three ETFs are also going to come to market in time for a rise in interest rates, and anticipated inflationary pressure.
Tisha Guerrero contributed to this article.