Pimco's Total Return ETF (BOND) Outperforms the Flagship Fund

May 15, 2012 11:42 AM EDT Send to a Friend
Pimco's Total Return ETF (NYSE: BOND) has posted solid gains since launching on March 1st. Overall, similar ETFs in the bond space have fared well during this period due to compression in global yields, as investors seek safety pending fallout from problems in Greece.

The interesting thing about BOND is that, so far, it is outperforming the Barclays Capital Aggregate Bond Index, which is the most commonly used benchmark for intermediate-term bond funds. The index has returned 0.03 percent since March, while BOND has had breakout success with a total return in excess of 4 percent.

BOND is also outperforming Pimco's massive flagship Pimco Total Return A (PTTAX), a mutual fund with a similar investment strategy, notes InvestmentNews. This is leading many observers to conclude that BOND is more nimble than a bulky, mulit-billion dollar mutual fund, and since it has the same management, namely Bill Gross, BOND could turn out to be a real stallion in the Bond ETF space.


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William H. Gross, Pacific Investment Management Company, LLC (PIMCO), Barclays

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