The funds have grown as investors have a taken a greater interest in fixed-income assets, which have attracted $35.1 billion over June. [Bond ETFs Remain Top Draw in June]
While investment-grade trading volumes dipped to a daily average of $11.4 billion in June, this year’s low, trading volumes in the largest bond ETFs increased 4%. The Total Return Fund added $1.4 billion in June, whereas the ETF version saw $498.4 million in new inflows.
“Once you get to a certain size, your ability to add value is constrained almost by definition,” Baha added in the Bloomberg story. “If you believe in the efficient-market theory, the bigger you get the more difficult it is to add value because your choices are more limited.”
PIMCO Total Return ETF
For more information on active funds, visit our actively managed ETFs category.
Max Chen contributed to this article.