PIMCO, like other actively managed ETF providers, believes that a portfolio manager should devote his or her time to research and beat the market. PIMCO launched its first actively managed ETF last year, the PIMCO Intermediate Municipal Bond Strategy Fund (NYSEArca: MUNI). The fund has a published benchmark index but only uses it as a comparison. Grail Advisors shortly followed with its own intermediate fund, the Grail McDonnell Intermediate Municipal Bond ETF (NYSEArca: GMMB). Most recently, Eaton Vance has registered to launch a series of actively managed funds. [Actively Managed ETFs: The Trend for 2010?]
Actively managed muni ETFs provide investment expertise of an established manager at a lower cost than mutual funds and greater transparency. For instance, Grail’s muni ETF has an expense ratio of 0.35% while the average mutual fund fee is 0.9%. [5 Reasons ETFs Are Better Than Mutual Funds.]
For more information on actively managed funds or muni funds, visit our actively managed ETFs category or municipal bond category.
Max Chen contributed to this article.