The wait lasted months, but finally here we are. It's coming from Pimco by Bill Gross is a new Exchange Traded Fund (ETF), a passively managed security that replicates, for the first time, the performance of a mutual fund. As usual, the name of the ETF is the same as the fund: Pimco Total Return, the largest bond fund in the world.
Investors have high expectations for this new financial product, especially as the ETF charges a total fee of 0,59%, significantly lower than the 0,89% charged by the underlying fund. Furthermore, if one considers that the minimum investment size of the fund is one million dollars, the revolution that the ETF brings with it is evident.
“For 40 years, Pimco has created investment strategies to help our clients achieve their goals in ways they see fit to best suit their needs,” Gross said. “The Total Return ETF builds on Pimco's prowess as an asset manager and we believe marks an important new stage in the development of the ETF industry".
Bill Gross's investment fund manages $250 billion in assets and is one of the largest bond funds in the world.
