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A Thoughtful Transition for This Silver-Rated PIMCO ETF

With a new name, a new strategy, and a new management team, PIMCO Active Bond ETF is an attractive choice.


Sarah Bush: PIMCO Active Bond ETF draws on PIMCO's many strengths. The strategy and team here have seen some changes in recent years. The ETF previously shared a name and investment team with the firm's flagship, PIMCO Total Return. However, in May 2017, the fund got a new name, a new strategy, and a new management team.

While such changes can be cause for alarm, PIMCO has been thoughtful about this fund's new mandate and has carved out a niche separate from PIMCO Total Return. Under its new guise, the fund is focused on income, which sets it apart from the flagship fund's total return mandate. In keeping with this focus, the fund has increased flexibility to invest in high-yield, which can now reach to 30% of the portfolio.

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