However, the BOND ETF may not use derivatives, whereas the flagship fund may utilize credit default swaps and options to take on additional positions.
While some have argued that the transparency in the actively managed ETF may encourage front-running, Strauts believes that it will have little or no effect as many in the industry are already in the know.
“All the big bond desks know what PIMCO is doing,” Strauts added.
PIMCO Total Return ETF
For more information on bond funds, visit our bond ETFs category.
Max Chen contributed to this article.