Two ETF Providers, a Slew of Bond Filings | ETF Trends

Bonds are the hot new thing, if a slew of new exchange traded fund (ETF) filings are any indication. Bond giant PIMCO has six new funds in the pipeline, while JP Morgan has filed for two actively managed bond funds.

Six new bond-focused ETFs from PIMCO are in the pipeline awaiting Securities and Exchange Commission (SEC) approval. Oliver Ludwig for Index Universe reports that most of the proposed funds are focused on corporate debt with varying credit qualities and maturities. [Fixed Income in the Pipeline Now.]

The Newport Beach, Calif.-based firm also filed with the SEC to roll out a dollar-denominated emerging markets sovereign debt ETF and an actively managed ETF based on Build America Bonds, or BABs.  [The Latest Big Name Jumping Into the Industry Is…]

The new ETFs will be:

  • PIMCO 0-3 Year Banking Sector Corporate Bond Index Fund
  • PIMCO 1-5 Year High Yield Corporate Bond Index Fund
  • PIMCO Emerging Markets Aggregate U.S. $ Denominated Bond Index Fund
  • PIMCO High Yield Corporate Bond Index Fund
  • PIMCO Investment Grade Corporate Bond Index Fund
  • PIMCO Build America Bond Strategy Fund

Add another household name to the roster of financial giants looking to take the ETF industry by storm. JP Morgan Chase is seeking exemptive relief to launch both actively managed and passively managed ETFs. ETFs for The Long Run reports that the passive funds appear to be two bond-index ETFs. One will track an index of investment grade municipal bonds with 1 to 12 years to maturity and the other will track investment grade corporate bonds with an issuance of at least $300 million.

The strategy for J.P. Morgan’s first actively managed ETF would be to invest in about 300 large-cap stocks across many sectors. The actively managed fund would have a fundamental weighting. There would be  a lean toward undervalued stocks and an underweighting for expensive shares. [State Street’s New International Corporate Bond ETFs.]

For more stories about new ETFs, visit our new ETFs 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.