Two New PIMCO Bond ETFs Hit the Scene | ETF Trends

PIMCO, a leader when it comes to all things bond-related, has launched two new exchange traded funds (ETFs) to give investors further access to the firm’s expertise in managing U.S. Treasury securities.

  • The PIMCO 3-7 Year U.S. Treasury Index Fund (NYSRArca:FIVZ) completes the firm’s lineup of ETFs that cover the key rate segments of Treasury securities. The fund offers exposure to the five-year segment of the curve, have low volatility relative to broader bond markets, and low default risk, as Treasuries are backed by the full faith and credit of the U.S. government.
  • The new PIMCO 25+ Year Zero Coupon U.S. (NYSEArca:ZROZ) offers an ETF solution for investors seeking a high level of interest rate sensitivity. ZROZ aims to enable investors to capitalize on expected interest rate movements or efficiently manage long-term interest rate-sensitive liabilities by offering a high duration without using financial leverage.

PIMCO now offers ETFs that span a broad range of Treasury note and bond maturities. This coverage of key Treasury rates is designed to give investors the tools needed to execute yield curve strategies, position for expected changes in interest rates and economic conditions, or maintain long-term allocations toward liquid, high-quality U.S. government securities. (More on PIMCO’s plans).

For more stories about bond ETFs, visit our bond ETF 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.