Pacific Investment Management Co. will add an actively managed bond exchange-traded fund to its current ETF lineup, and perhaps other types of active ETFs, The Wall Street Journal reports.
PIMCO rattled the ETF business when the Newport, Calif., fund manager with $829.5 billion in assets under management sought approval in July from the Securities and Exchange Commission for an ETF based on a broad-based bond benchmark.
Its important for us to have an array of investment products, Managing Director Tammie Arnold told the Journal, declining to go into specifics. We're also interested in considering equity, commodity, and asset allocation active ETFs.
Only a few active ETFs have launched so far this year. Actively managed ETFs created quite a buzz beginning late last year into early this year, before market conditions turned sour and halted their momentum. Most investors are taking a wait-and-see approach to the controversial new products and will likely refrain from adopting the products until general market conditions improve.