PIMCO announced Tuesday that two new exchange-traded funds, the PIMCO Build America Bond Strategy Fund and the PIMCO Investment Grade Corporate Bond Index Fund.

The BAB fund is an actively managed ETF that will sidestep municipalities that PIMCO believes face deteriorating credit quality, while the corporate bond fund is an index fund tracking the BoA Merrill Lynch U.S. Corporate Index. John Cummings, head of PIMCO’s municipal bond desk, manages the BAB fund, and Vineer Bhansali, managing director, is running the corporate bond fund.

“These new funds broaden investor access to two important fixed income areas—Build America Bonds and investment-grade corporate bonds—using the efficient, transparent ETF format,” said Tammie Arnold, managing director and head of PIMCO’s global ETF business.

PIMCO noted that although the BAB program is scheduled to expire at the end of 2010, the firm is optimistic the program will be extended.