Seeking Alpha

Pimco to close laddered bond ETF

  • The Pimco Broad U.S. Treasury ETF (TRSY -0.1%) has managed to garner just $8M in assets since opening in 2010 despite an expense ratio of 0.15% - seemingly cheap for the laddered strategy it offers. It will close on March 14.
  • A bond ladder is a strategy to hopefully reduce rate risk by holding durations all along the yield curve, and Roger Nusbaum suggests the fund's failure could be one of marketing as the ETF's plain vanilla name makes it look like just another Treasury fund.
  • The PowerShares 1-30 Year Laddered Treasury Portfolio (PLW -0.5%) - three years older than TRSY - has $144M in assets and an expense ratio 10 bps higher than Pimco's offering.
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