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.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.