PIMCO is looking to add a trio of active bond exchange-traded funds to its portfolio.
Specifically, the PIMCO Real Return Exchange-Traded Fund will bet on inflation-indexed bonds of varying maturities issued by the U.S. and non-U.S. governments. The holdings’ duration will be within plus or minus three years of the Barclays U.S. TIPS Index, which has a duration of around 6.2 years. It has a net annual operating expense of 55 basis points and is jointly managed by Bill Gross and Mihir Worah.
The PIMCO Low Duration Exchange-Traded Fund (LDUR) bets on a diversified portfolio of bonds of varying maturities from one to three years. It also has a 55 bps annual operating expense and is managed by Gross and Marc Seidner.
The PIMCO Diversified Income Exchange-Traded Fund (DI) has a higher operating expense (85 bps.) and has an average portfolio duration of between three to eight years. It is jointly managed by Gross and Curtis Mewbourne.