PIMCO Set To Launch 3 New ETFs

Includes: BOND
by: Tom Lydon

PIMCO is getting ready to launch three new actively managed exchange traded funds this year. The funds will follow the success of PIMCO Total Return ETF (NYSEARCA:BOND).

"These three ETFs are designed to provide income and preserve purchasing power," says Don Suskind, head of ETF product management at PIMCO, in a report. "They line up with what we think investors need."

BOND, launched in February 2012, was the first actively managed ETF from the provider. The ETF has gathered about $5.3 billion in assets under management , compared to the sister mutual fund, PIMCO Total Return (MUTF:PTTDX), that has $293 billion in AUM.

BOND has returned 14.2% since inception through May 8, compared to the mutual fund that has gained 8.5% over the same time period, reports Nellie Huang for Kiplinger. Bill Gross manages both the active ETF and the mutual fund. Gross is expected to co-manage the three new ETFs with other featured managers selected.

  • PIMCO Diversified Income ETF (DI) managed by Curtis Mewbourne
  • PIMCO Real Return ETF ETF - ticker n/a - managed by Mihir Worah
  • PIMCO Low-Duration ETF (LDUR) managed by Marc Seidner

All three ETFs follow in the wake of currently trading mutual funds that are successful, have long track records and are a leader in their respective category.

All three ETFs are also going to come to market in time for a rise in interest rates, and anticipated inflationary pressure.

Tisha Guerrero contributed to this article.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.