Additionally, the fund manager diminished the fund’s mortgage-bond holdings to 20% in July from 22% in the previous month. BOND shows a 28% position in mortgage bonds.
Meanwhile, Gross raised non-U.S. developed exposure to 17% in his flagship fund, the most since December 2011, from 16%, and held emerging-market bond exposure steady at 9%. In comparison, the BOND ETF has a 24% position in non-U.S. developed debt and 1% in emerging market debt.
Emerging market bonds have also shown healthy gains as investors turned to higher yielding options in light of falling rates in the developed markets. For example, the iShares J.P. Morgan USD Emerging Markets Bond ETF (NYSEArca: EMB) is up 8.0% year-to-date and comes with a 4.45% 30-day SEC yield.
For more information on the fixed-income market, visit our bond ETFs category.
Max Chen contributed to this article.