PIMCO Adds To Its ETF Lineup
About: PIMCO, PIMCO ETFs, PIMCO 0-3 Year Banking Sector Corporate Bond Index Fund, BofA Merrill Lynch 0-3 Year US Banking Index, PIMCO 1-5 Year High Yield Corporate Bond Index Fund, BofA Merrill Lynch 1-5 Year US High Yield Constrained Index, PIMCO Emerging Markets Aggregate U.S.$ Denominated Bond Index Fund, BofA Merrill Lynch US Emerging Markets Sovereign & Credit Plus Index, PIMCO Build America Bond Strategy Fund ETF PIMCO, the fixed income giant that manages the world's largest mutual fund, is adding to its ETF lineup with the addition for four new bond ETFs. The PIMCO 0-3 Year Banking Sector Corporate Bond Index Fund will track the BofA Merrill Lynch 0-3 Year US Banking Index. The ETF will focus on debt with short-term maturities of zero to three years.
PIMCO also plans to unveil a high-yield offering, the PIMCO 1-5 Year High Yield Corporate Bond Index Fund, which will track the BofA Merrill Lynch 1-5 Year US High Yield Constrained Index. This index is made up of dollar-denominated corporate debt that is rated below investment grade. While this may be considered a “higher risk” offering, it should be noted that PIMCO has a solid track record when it comes non-investment grade issues.
PIMCO will put its mastery of emerging markets on display 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 final new offering from PIMCO is the PIMCO Build America Bond Strategy Fund ETF. This ETF will primarily invest in investment grade debt and might be a good option for income-seeking investors.
Tickers and expense ratios were not disclosed for these ETFs. Prior to this announcement, PIMCO listed 10 ETFs on its Web site that are currently trading. All of the new ETFs will use swaps, options and other derivatives in some capacity, but PIMCO is especially
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