Here’s How The Bill Gross ETF Shapes Up

PIMCO’s Bill Gross has doubled the weight of non-U.S. developed market bonds in the firm’s $250 billion Total Return Fund, the world’s largest mutual fund.

Total return’s holdings of Treasuries and other U.S. government-related debt were unchanged at the end of last month as Gross has spoken positively of buying Treasuries at the end front end of the yield curve, include three-, four- and five-year bonds, Susanne Walker reported for Bloomberg.

That is how things shape for the mutual fund, but ETF investors that have embraced the PIMCO Total Return ETF (NYSEArca: BOND) no doubt want to know if Gross is taking a similar tact with the smaller, but more nimble BOND.  With $3.9 billion in assets under management, BOND is the largest actively managed ETF. [Total Return ETF: Low Fee Access to Bill Gross]

BOND’s maximum sector guidelines are as follows: 10% to junk bonds, 30% to developed markets ex-U.S., 15% to emerging markets and 20% to currency, according to PIMCO.

Here’s what BOND’s maturity distribution and sector allocations look like as of the end of the third quarter. Both charts courtesy of PIMCO.

Tom Lydon’s clients own shares of BOND.