The other new ETF launch, LDUR, provides diversified exposure to high quality, short-term bonds across mortgage-backed, Treasury, corporate and international fixed-income sectors. The ETF is managed by Marc P. Seidner, a managing director and generalist portfolio manager at PIMCO.
The fund has 5 holdings, with a 2.26 year effective duration, and comes with a 0.55% expense ratio.
So far, the underlying bonds are all from the U.S. LDUR currently holds most of its weight in U.S. government bonds at 92.7%.
LDUR is an ETF adaptation of the PIMCO Low-Duration Fund Institutional (PTLDX), which has a 0.28% expense ratio. The PIMCO Low Duration Fund A-Shares (PTLAX) comes with a 0.80% expense ratio.
PTLDX has generated an average annualized return of 4.6% over the past 15-years, 3.9% over the past 10-years and 5.0% over the past five-years. The mutual fund has a 0.28% 30-day SEC yield.
For more information on new product launches, visit our new ETFs category.
Tom Lydon’s clients own shares of BOND.