PIMCO Ducks Its Head Into Bond ETFs

Includes: HYS
by: Wall Street Sector Selector

by John Nyaradi

In light of recent news regarding tough unemployment numbers, a sagging stock market and the ticking clock of the looming deficit ceiling debate, investors far and wide are scrambling for more conservative approaches to growing their nest eggs, while still searching for reasonable profits in today’s difficult markets.

Everybody knows about Bill Gross and PIMCO, particularly his flagship fund, the $237 billion Total Return Fund, the largest bond fund in the world, however, not so many people are aware that PIMCO also has a family of ETF Bond Funds.

PIMCO ETFs just released its 0-5 Year High Yield Corporate Bond Index Fund (NYSEARCA:HYS),which offers investors a chance to dabble in the conservative bond world, while still offering high returns.

HYS is the 14th ETF the company has offered to go along with four actively managed Bond ETFs, and nine additional ETFs that focus on the U.S. Treasury Bond market. PIMCO says that (HYS) focuses on “duplication of the total return of The BofA Merrill Lynch 0-5 Year US High Yield Constrained Index." As of now, HYS sells for roughly $100 per share, and already as over $24,000,000 in assets. These startling numbers indicate that HYS will likely be a top performer in the ETF bond market.

For investors interested in exposure to the world of Bonds, PIMCO deserves serious consideration as its 14 ETFS, specialize in the major areas of the bond world including corporate, government, high yield and inflation protected bonds.

PIMCO ETFs include:

  1. PIMCO Enhanced Short Maturity Strategy Fund: (NYSEARCA:MINT)
  2. PIMCO Short Term Municipal Bond Strategy Fund: (NYSEARCA:SMMU)
  3. PIMCO Intermediate Municipal Bond Strategy Fund: (NYSEARCA:MUNI)
  4. PIMCO Build America Bond Strategy Fund: (NYSEARCA:BABZ)
  5. PIMCO 1-5 Year U.S. TIPS Index Fund: (NYSEARCA:STPZ)
  6. PIMCO Broad U.S. TIPS Index Fund: (NYSEARCA:TIPZ)
  7. PIMCO 15+ Year U.S. TIPS Index Fund: (NYSEARCA:LTPZ)
  8. PIMCO Broad U.S. Treasury Index Fund: (NYSEARCA:TRSY)
  9. PIMCO 1-3 Year U.S. Treasury Index Fund: (NYSEARCA:TUZ)
  10. PIMCO 3-7 Year U.S. Treasury Index Fund: (NYSEARCA:FIVZ)
  11. PIMCO 7-15 Year U.S. Treasury Index Fund: (NYSEARCA:TENZ)
  12. PIMCO 25+ Year Zero Coupon U.S. Treasury Index Fund: (NYSEARCA:ZROZ)
  13. PIMCO Investment Grade Corporate Bond Index Fund: (NYSEARCA:CORP)
  14. PIMCO 0-5 Year High Yield Corporate Bond Index Fund: (HYS)

So again we can see how Exchange Traded Funds offer investors and traders an almost unlimited palette of offerings from which you can custom build your own strategies and portfolios.

In today’s challenging environment, we can likely expect to see even more turbulent times ahead as Congress continues to toss around the debt ceiling football, unemployment reports ravage the Obama Administration, and seemingly “Dr. Ben” simply cannot push the “Print” button for US currency very much longer.

Bond ETFs will likely continue to be a major force in global markets and investors can join PIMCO in ducking their heads into the world of bonds through (HYS) and PIMCO’s other ETF offerings.