PIMCO’s Total Return ETF Races to Record $3 Billion in Assets

“But it’s no more than a validation now than it was when it reached $2 billion in assets,” said Morningstar ETF analyst Tim Strauts. “Even then it was the largest actively-managed ETF. It helps to have a star manager attached to it and the strong performance of the corresponding Total Return mutual fund.”

“This is a watershed event. You’re taking the largest actively managed mutual fund and making it more accessible, more transparent and cheaper, which is appealing to many potential investors,” Todd Rosenbluth, an ETF analyst with Standard & Poor’s Capital IQ, told AdvisorOne when the ETF was launched back in March. “Smartphones come out on a regular basis, but they don’t get the same buzz as when a new iPhone comes out. There’s a cachet behind this because of the strong brand name and the track record that Bill Gross and his team have established.”

PIMCO Total Return ETF switched ticker symbols from TRXT to BOND on the NYSE Arca in April and has a gross expense ratio of 0.55%, which is notably cheaper than the 0.85% charged for the more established PIMCO Total Return A (PTTAX), according to Rosenbluth. PTTAX underperformed intermediate investment grade bond fund peers in the past 12 months ended Feb. 24, but has an above-average five- and 10-year annualized record.