Pimco in a regulatory filing Thursday said its planned Total Return Exchange Traded Fund will charge a management fee of 0.55%.
The ETF is expected to list soon and will be piloted by bond guru Bill Gross. The move is seen as a major step forward in the development of actively managed ETFs.
Assets in U.S.-listed ETFs have broken through $1 trillion, up 39% from last year. Most ETFs track passive indexes.
However, the new Pimco ETF will give investors access to the investment strategy of the bond giant’s flagship Total Return Fund. The mutual fund touts more than $240 billion in assets. [Pimco Files for Total Return ETF]
The move is a nod to active management with ETFs, and investors can expect more mutual funds to follow this move, reports Elizabeth O’Brian at SmartMoney.
Expect the ETF version of Total Return Fund to have potentially fewer holdings than the fund. [Pimco ETF Filing is ‘May Day’ for Mutual Funds]