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ETF Specialist

PIMCO Total Return ETF Is Off to a Fast Start

This new active ETF is the best-performing intermediate-term bond fund over the past two months.

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When PIMCO first announced the launch of an exchange-traded fund version of the largest U.S. mutual fund,  PIMCO Total Return Instl (PTTRX), the general consensus was that it would be a successful ETF. Today, a little more than two months since its launch, PIMCO Total Return ETF (BOND) has thus far surpassed almost everyone's expectations. It is the fastest-growing active ETF ever, with more than $700 million in assets. BOND has not had the liquidity issues that some new ETFs have when they are brand new. It has a high average trading volume of more than 200,000 shares per day and bid/ask spreads of two cents or less most of the time. To top it off, the ETF was launched right as the Total Return strategy was outperforming the market. Since BOND's Feb. 29, 2012,  inception, it is the best-performing intermediate-term bond fund in the Morningstar database by a substantial margin.

For an introduction to the differences between the ETF and the mutual fund, please read my earlier article on the topic.

Timothy Strauts does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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