Pimco has filed with the SEC to launch an actively-managed ETF version of Bill Gross' Total Return fund, the world's largest bond fund.
The Pimco Total Return ETF will invest at least 65% of its total assets in a diversified portfolio of fixed income instruments of varying maturities, although it can invest up to 15% of its assets in securities that are considered illiquid.
Most of the ETF's holdings will be high quality bonds, while the fund can also invest 10% of its assets in junk bonds and 15% in emerging markets, with foreign currency exposure limited to 20%.
The fund will join Pimco's range of actively-managed ETFs, including the Enhanced Short Maturity Strategy, which has roughly $1bn in assets.
Unlike traditional ETFs, which track an index, actively-managed funds employ a manager who actively picks investments, including other ETFs as well as individual stocks and bonds.
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