However, the ETF will not be allowed to invest in derivatives due to new regulatory restraints, unlike Total Return Fund, according to Bloomberg.
Still, an ETF managed by Gross would likely raise the profile of the overall business, which accounts for about $1 trillion in assets in the U.S. Most ETFs track indexes.
For some investors, an ETF version of Total Return Fund could make sense. Unlike mutual funds, investors can trade ETFs during the day, and they also offer low fees and tax efficiency.
The Pimco ETF would be structured as a “stand-alone” ETF rather than as a separate share class of Total Return Fund.
The investment manager already oversees several ETFs. For example, with over $1 billion in assets, Pimco Enhanced Short Maturity Strategy Fund (NYSEArca: MINT) is an actively managed ETF in its lineup. [New Pimco ETF Targets Corporate Bonds]
Pimco Total Return Fund
