Pimco Looks to Clone ETF Success

Three new actively managed ETFs will follow the strategies of existing mutual funds.

How do you follow up one of the most successful exchange-traded fund launches in history? You start three more, of course. Ba-dum-bum-CHING

Last year, Pimco, the Newport Beach, Cal., bond giant, launched Pimco Total Return Exchange-Traded Fund (symbol BOND). It now has $5.3 billion in assets. The draw: BOND is actively managed, unlike most ETFs, which are tied to an index. Also, it's run by Bill Gross, who uses the same strategy he's become famous for at Pimco Total Return (PTTDX), which, with $293 billion in assets, is the world's biggest mutual fund. And then there's the ETF's outsize return: From its February 2012 inception through May 8, BOND returned a cumulative 14.2%. The mutual fund, by contrast, gained just 8.5% – more on that later.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Nellie S. Huang
Senior Associate Editor, Kiplinger's Personal Finance

Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.