PIMCO Unveils Active TIPS ETF


PIMCO launched its sixth actively managed exchange-traded fund (ETF), this time focused on government inflation linked bonds.

The PIMCO Global Advantage Inflation-Linked Bond Strategy Fund (NYSEArca:ILB - News) is an actively-managed exchange-traded fund comprised of inflation-linked bonds that span developed and emerging markets. The fund will normally invest at least 80% of its assets in inflation-linked bonds, which are fixed income.

The fund is benchmarked to the GDP-weighted Global Advantage Inflation Linked Bond Index and the Barclays Capital Universal Government Inflation Linked Bond Index. ILB does not use swaps, futures contracts, or options.

Mihir P. Worah is ILB's portfolio manager and he's also head of the real return portfolio management team.

ILB currently holds 38 bonds within an effective duration of 7.01 years. The fund's net annual expense ratio is 0.60% and dividends are distributed monthly.

At the end of March, PIMCO managed $4.1 billion in ETF assets.

Other ETF Launches

The Market Vectors Morningstar Wide Moat Research ETF (NYSEArca:MOAT - News) was introduced and is linked to the Morningstar Wide Moat Focus Index, which attempts to own the 20 most attractively priced companies with sustainable competitive advantages according to Morningstar's equity research team.

Approximately 84% of the stocks within MOAT are large cap companies, with the remainder being mid-cap companies (NYSEArca:MDY - News). All companies within MOAT are assigned an equally weighting. The index is reconstituted and rebalanced on a quarterly basis in March, June, September, and December.

MOAT's top industry sectors are technology (25%), financial services (19.9%), and healthcare (15.4%). The fund charges an annual net expense ratio of 0.49%.

Guggenheim launched three high yield bond ETFs with fixed maturity dates.  The new funds are the Guggenheim BulletShares 2016 High Yield Corporate Bond ETF (NYSEArca:BSJG - News), the Guggenheim BulletShares 2017 High Yield Corporate Bond ETF (NYSEArca:BSJH - News), and the Guggenheim BulletShares 2018 High Yield Corporate Bond ETF (NYSEArca:BSJI - News). The funds all charge 0.42% annually.

UBS rolled out the E-TRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN (NYSEArca:BLND - News) which is an equal-weighted blend of three different benchmarks: the Dow Jones-UBS Commodity Index 4 Month Forward, the Dow Jones-UBS Commodity Index 2 Month Forward and the Dow Jones-UBS Commodity Index 6 Month Forward. BLND has an annual expense ratio of 0.70%.

Blackrock introduced the iShares Baa-Ba Corporate Bond Fund (BATS:QLTB - News) and the iShares B-Ca Corporate Bond Fund (BATS:QLTC - News). Both ETFs own corporate bonds with the identical credit rating within the respective fund's name. QLTB charges annual expenses of 0.30% and QLTC is 0.55%. 

Fee Cuts

Vanguard reduced expense ratios on 13 ETFs, including its popular Vanguard Total Stock Market ETF (NYSEArca:VTI - News) and Total Bond Market ETF (NYSEArca:BND - News).

The price cuts also vaulted the Vanguard S&P 500 ETF (NYSEArca:VOO - News) into the coveted spot of the least expensive S&P 500 ETF. By comparison, the SPDR S&P 500 (NYSEArca:SPY - News) charges 0.09% annually. 

The Vanguard ETF price cuts went into effect on April 26, are as follows:

• Vanguard Extended Market ETF (NYSEArca:VXF - News) from 0.16% to 0.14%

• Vanguard Growth ETF (NYSEArca:VUG - News) from 0.12% to 0.10%

• Vanguard Large-Cap ETF (NYSEArca:VV - News) from 0.12% to 0.10%

• Vanguard Mid-Cap Growth ETF (NYSEArca:VOT - News) from 0.12% to 0.10%

• Vanguard Mid-Cap ETF (NYSEArca:VO - News) from 0.12% to 0.10%

• Vanguard Mid-Cap Value ETF (NYSEArca:VOE - News) from 0.12% to 0.10%

• Vanguard Small-Cap Growth ETF (NYSEArca:VBK - News) from 0.12% to 0.10%

• Vanguard Small-Cap ETF (NYSEArca:VB - News) from 0.17% to 0.16%

• Vanguard Small-Cap Value ETF (NYSEArca:VBR - News) from 0.23% to 0.21%

• Vanguard Value ETF (NYSEArca:VTV - News) from 0.12% to 0.10%

• Vanguard Total Stock Market ETF (NYSEArca:VTI - News) from 0.07 to 0.06%

• Vanguard Total Bond Market ETF (NYSEArca:BND - News) from 0.11% to 0.10%.

• Vanguard S&P 500 ETF (NYSEArca:VOO - News) from 0.06% to 0.05%

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