Pimco will try to keep the performance of the two very close, because if the ETF outperforms, investors might flee the mutual fund altogether. [ETFs Gaining Momentum at Morningstar Confab.]
Pimco’s move is a “validation” of the active ETF format, Morningstar analyst Robert Goldsborough told SmartMoney. [Investors Miffed with Underperforming Funds Migrate to ETFs.]
The institutional share class of Total Return Fund has an expense ratio of 0.46%, Bloomberg reported. Unlike the Total Return Fund, the ETF would not be able to invest in derivatives, according to the report.
Pimco Total Return Fund
Tisha Guerrero contributed to this article.