“Because the BOND ETF is new, the fund’s manager and PIMCO founder Bill Gross did not have to deal with any legacy positions that may have hindered performance in the 25-year-old Total Return,” Prosser wrote.
“The PIMCO Total Return Fund has over $250 billion under management. This makes it very difficult to move in and out of positions, and significantly limits the universe of investable opportunities. With less than 0.5% of the assets in the mutual fund, the relatively small size of the BOND ETF opens up a lot more opportunities to the ETF, that are too small for the larger mutual fund,” he added.
BOND’s solid start has some investors and financial advisors wondering if they should switch over to the ETF shares from the mutual fund. [PIMCO Total Return: ETF or Mutual-Fund Wrapper?]
PIMCO Total Return ETF
