With PIMCO’s year-old Total Return exchange-traded fund now pulling in more investor dollars than its flagship fixed-income Total Return Fund, the investment management firm is understandably in a hurry to launch three more ETFs.
PIMCO, which exited a quiet period on Monday for the new funds, is adding bond king Bill Gross (left) as co-manager on all three of the actively traded ETFs, according to filings with the Securities and Exchange Commission.
The PIMCO ETFs—Diversified Income, Low Duration and Real Return—will be similar to the strategies of existing PIMCO fixed-income mutual funds, although a PIMCO spokesman told Barron’s that the funds were “not intended to be clones” of those mutual funds in an ETF vehicle. Tickers for the ETFs are not available.
“Distinction without a difference? No, there’s a difference,” writes Brendan Conway for Barron’s. PIMCO’s Total Return ETF (BOND) is up 10.5% in the last year, while its mutual-fund forebear, the PIMCO Total Return Fund (PTTRX), is up 7.6%. “No, it’s not a radical difference,” he writes. “But the returns speak for themselves.”
A launch date has not yet been set. PIMCO currently has 20 ETFs, including seven actively managed ETFs.