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PIMCO and Goldman Sachs are joined by OppenheimerFunds and Nuveen Fund Advisors in asking the U.S. Securities and Exchange Commission for more flexibility when constructing ETFs that track bond indices, which could potentially allow them to compete on even footing with ETF giants like Vanguard, BlackRock and State Street.
“The real impetus for this has come from the debt people,” Kathleen Moriarty, an attorney at Chapman & Cutler LLP told Bloomberg. Managing an index ETF “becomes more difficult with bonds, especially if you are talking about anything other than Treasury bonds.”
Goldman and others are requesting the same latitude as others. According to a recent filing, the money manager is requesting ETFs “may receive or deliver” a creation basket “that does not correspond pro rata to the identities of the portfolio holdings of the fund.”
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