Three newly introduced actively managed bond ETFs will compete in the growing fixed-income ETF marketplace.
Grail Advisors added the Grail McDonnell Intermediate Municipal Bond ETF (GMMB) and the Grail McDonnell Core Taxable Bond ETF (GMTB). And PIMCO debuted the PIMCO Short Term Municipal Bond Strategy Fund (SMMU).
The PIMCO muni-bond ETF holds short-term top-rated municipal bonds and is benchmarked against the Barclays Capital 1-3 Year Municipal Bond Index. The fund’s annual expense ratio is 0.35 percent and the fund pays monthly income.
The new Grail McDonnell bond ETFs allow the portfolio managers unrestricted trading, but with transparency of holdings and intraday liquidity for investors.