In comparison, the Vanguard and iShares broad bond offerings hold $17.6 billion and $15.5 billion, respectively.
Gross argued that the competition is too heavily invested in low-yield Treasuries. For instance, BND has 44.0% allocated to Treasury/Agency bonds and AGG has 36.2% in Treasuries. In contrast, BOND has 6% in Treasuries.
“I don’t care about the fees. Just bring them over because you’ll be helping them out. I can’t guarantee it … but I think it’s a pretty good bet,” Gross said in the FT story.
For more information on actively managed funds, visit our actively managed ETFs category.
Max Chen contributed to this article.