The PIMCO 1-3 Year U.S. Treasury Index Fund (TUZ) began trading in early June.

This ETF focuses on U.S. Treasuries with short-term maturities and is benchmarked to the Merrill Lynch 1-3 Year U.S. Treasury Index. With maturities ranging from one to three years, price fluctuations may be low relative to longer-dated bonds, yet yields may be generally higher than shorter-term instruments such as Treasury bills or government money market funds.

“PIMCO’s new ETF platform provides investors with broader access to investment management services,” says Mohamed A. El-Erian, PIMCO’s CEO and Co-Chief Investment Officer. “By launching our first ETF, PIMCO is diversifying the range of products that we offer to both long-standing and new clients around the world.”

The bulk of ETF money today is invested in funds that follow traditional indexes, although some see active management as a source of future growth.

TUZ has a temporary fee waiver, which reduces its annual expense ratio to 0.09%. After two years, TUZ’s fund expenses are expected to have a small increase.

There are currently 14 U.S. government focused bond ETFs with average expense ratios of 0.16%. The majority of these funds are managed by Barclays Global Investors (iShares) and State Street Global Advisors (SPDRs). With just over $12 billion, the iShares Barclays U.S TIPS Fund (TIP) is the largest among these.

PIMCO, led by bond guru Bill Gross, is expected to launch more ETFs to round out its suite of products. The firm was founded in 1971 and currently manages around $755 billion in assets.