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Trading Places: PIMCO Short-Duration Bond ETF Tops Gross as Largest Active Fund


In another sign that investors are getting nervous about rising interest rates, a short-duration bond ETF at PIMCO has grown larger than a fund managed by Bill Gross.

PIMCO Enhanced Short Maturity ETF (MINT) now holds assets of about $4.1 billion, compared with roughly $4 billion for PIMCO Total Return ETF (BOND), which is skippered by Gross.

BOND is the ETF version of PIMCO Total Return Fund, the world’s largest mutual fund. [PIMCO Total Return ETF Provides Low-Cost Access to Bill Gross]

MINT is an ultrashort bond ETF that some investors use as an alternative to money market funds. [Short-Duration ETFs]

MINT has replaced BOND as the largest actively managed ETF.

Since long-term rates began to rise in May, investors have pulled out $858 million from the Total Return ETF and added $1.4 billion to the Enhanced Short Maturity ETF, reports Jason Kephart for Investment News.

“With massively rising interest rates, even a good bond manager is going to have trouble creating positive performance in this environment,” said Timothy Strauts, an analyst at Morningstar, in the article.

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