The ETF has noticeably fewer holdings than PIMCO Total Return Fund.
“Because the ETF’s portfolio is relatively lean and nimble, PIMCO’s best individual bond ideas can make up relatively larger portions of BOND than PIMCO Total Return,” Strauts notes. “Effectively, the ETF is performing like Bill Gross’ ‘best ideas’ list.”
However, as BOND increases in size, he expects the outperformance versus the mutual fund to narrow.
PIMCO Total Return ETF
