PIMCO is set to launch two new bond exchange traded funds (ETFs) linked to Treasuries. This is adding to the bond giant’s growing category of bond-related funds.
The two new ETFs PIMCO is adding to their lineup include:
- PIMCO 3-7 Year Year U.S. Treasury Index Fund (NYSEArca: FIVZ)
- PIMCO 20+ Year Zero Coupon U.S. Treasury Index (NYSEArca: ZROZ)
Cinthia Murphy for Index Universe notes that the annual expense ratio for both funds is set at 0.15%.
When it launches, ZROZ will face off with the Vanguard Extended Duration Treasury (NYSEArca: EDV), which launched in December 2007, which tracks the Treasury STRIPS 20-25 Year Equal Par Bond Index. FIVZ will face the iShares Barclays 3-7 Year Treasury Bond Fund (NYSEArca: IEI).
STRIPS are Treasury bonds are securities that are sold at a discount to their face value. They don’t offer interest payments because they mature at par. The securities were first offered in 1985. (More on what PIMCO is doing).
For more stories about bond ETFs, visit our bond category.
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.