PIMCO To Launch Four New ETFs
Fixed income giant PIMCO has filed plans to launch four new bond ETFs, bolstering the firm's presence in the ETF arena.
The PIMCO 0-3 Year Banking Sector Corporate Bond Index Fund will track the BofA Merrill Lynch 0-3 Year US Banking Index and may use swaps, derivatives and futures to accomplish its objectives. That's OK as PIMCO is one of the best at using those financial instruments.
PIMCO will also introduce a high-yield offering, the PIMCO 1-5 Year High Yield Corporate Bond Index Fund, which will follow the BofA Merrill Lynch 1-5 Year US High Yield Constrained Index. This index is comprised of dollar-denominated corporate debt that is rated below investment grade.
Emerging markets is the next stop for PIMCO with the introduction of the PIMCO Emerging Markets Aggregate U.S.$ Denominated Bond Index Fund, which will track the BofA Merrill Lynch US Emerging Markets Sovereign & Credit Plus Index.
The PIMCO Build America Bond Strategy Fund ETF is a play on Build America Bonds, which have proven popular with income-seeking investors. This ETF will invest the bulk of its assets in investment grade debt.
Tickers and expense ratios were not disclosed for the new ETFs. On its Web site, PIMCO lists 10 ETFs that are currently trading.
