Bond giant Pacific Investment Management Co. is preparing to launch its first exchange-traded fund, according to government filings.

Bond ETFs are becoming one of the fastest growing areas in the fund industry as investors continue to flock to the safety of low-yield, short-term Treasurys.

The PIMCO 1-3 Year U.S. Treasury Index Fund specifically focuses on low-yielding short-term Treasuries, putting the $760 billion company co-founded by Bill Gross in direct competition with ETF heavyweights Barclays PLC and State Street Corp.

PIMCO is promoting its ETF by offering to charge investors annual fees of 0.09% of assets, compared with the 0.15% fees Barclays charges for its similar $7.1 billion iShares Barclays 1-3 Year Treasury Bond ETF.

With fees that low, PIMCO will have to have high trading volumes in order to keep trading costs low for both long- and short-term holders.

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