With reporting season well underway, the markets have enjoyed a strong upswing after a majority of sectors outperformed themselves. Following a wave of filings and launches over the last two weeks, this week was a relatively slow one for new ETFs. Just one firm announced plans for a new set of funds, which we could see as early as this summer [see ETF Database Launch Center].
Looking to replicate its success with (BOND, B-), PIMCO has planned more funds based on their existing mutual funds:
- The Diversified Income ETF: With BOND having one of the best returns for a new ETF in the history of the industry, PIMCO is continuing this strategy of mutual funds converted to ETFs. The Diversified Income Fund will be 10-years old this summer, and it has been one of the most popular mutual funds since its inception, due to its strategy of favoring a number of high potential income sectors, making it a perfect template for an intriguing ETF.
- The Real Return ETF: By finding a maximum return through investment in inflation-indexed fixed income securities, the Real Return fund is another existing PIMCO mutual fund the company would like to duplicate through an ETF. [Check out the 7 Articles ETF Investors Must Read: 4/25]
- The Low Duration ETF: By investing in shorter term, investment grade bonds, the Low Duration Fund has been marketed as a core investment strategy; by adding the ETF mirror fund, the Low Duration ETF will be available to a much wider audience.
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