Is Another Treasury ETF Really Needed?

Nov. 3.10 | About: PIMCO Broad (TRSY)

Does the world need another Treasury ETF? Apparently PIMCO believes it does, as it launched the PIMCO Broad U.S. Treasury Index Fund (NYSEARCA:TRSY) on Monday (11/1/10). Apparently the world does not, as two days later TRSY is still awaiting its first trade.

The new ETF aims to achieve the yield, duration and capital preservation inherent in the BofA Merrill Lynch Liquid US Treasury Index by investing in Treasury securities of various maturities.

The fund will include the three most recently issued 2-year, 3-year, 5-year, 7-year, 10-year, and 30-year notes and bonds. No information is provided regarding the expected yield, weighted maturity, or duration. TRSY will cap expenses at 0.15%. Additional information can be found in the press release, fund snapshot, and TRSY fact sheet (pdf).

Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.