In the world of actively managed mutual funds, and much less actively managed ETFs, where the ultimate goal of the product is to deliver alpha to some stated benchmark, we find that expense ratios on similar products to BOND typically range well north of 1%.
Last week’s asset inflows in BOND are certainly encouraging not only to PIMCO, but to other asset management companies such as AdvisorShares, whom are pioneers in “Actively Managed ETFs” as well as those investment advisors whom have been waiting for the active ETF phenomenon to take off.
Thus, we will monitor this situation intently throughout the rest of the summer and the remainder of 2012, as a sea change may certainly be underway not only in fixed income, but in the ETF industry in general.
PIMCO Total Return ETF
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