An ETF version of PIMCO Total Return Fund could be a turning point for the industry, which recently broke through $1 trillion in total assets.
“There hasn’t really been a big personality behind an ETF because most track indexes. There are rock stars that manage active mutual funds, but not ETFs,” Lydon said. “PIMCO and Bill Gross have the brand, the status and the track record.”
The PIMCO Total Return ETF would disclose portfolio holdings daily, Morningstar reported.
“Our argument long has been that disclosing portfolio holdings daily–a hangup for some traditional mutual fund managers who want to roll out actively managed ETFs–wouldn’t be much of a hindrance. After all, PIMCO is so big that many trading desks have decent ideas already about when the firm is buying and selling,” analyst Robert Goldsborough wrote.
“Plus, we have advocated for an actively managed version of PIMCO Total Return Fund under the argument that the fees for retail investors could be lower, the tax efficiency could be higher, and the fund distribution channel is open to all,” he added.