Pimco, the Newport Beach, California-based bond fund giant, is quickly expanding its presence in the ETF arena. Three months ago, Pimco was watching from the sidelines as iShares continued to show its dominance in the fixed income ETF space. With the launch of three additional ETFs this month, Pimco’s product line now consists of five funds, and is likely to continue to expand. Pimco’s ETFs include:
- Pimco 7-15 Year U.S. Treasury Index Fund (TENZ)
- Pimco 15+ Year U.S. TIPS Index Fund (LTPZ)
- Pimco Broad U.S. TIPS Index Fund (TIPZ)
- Pimco 1-5 Year U.S. TIPS Index Fund (STPZ)
- Pimco 1-3 Year U.S. Treasury Index Fund (TUZ)
Behind the scenes, Pimco is continuing to prepare for additional fund launches, but it appears that the firm has concentrated for now on boosting its line of inflation-protected securities. As worries about the intermediate to long-term consequences of the massive stimulus packages implemented around the world intensify, inflation-protected bonds have become a popular investment choice.
TIP, by far the largest ETF offering inflation-protected fixed income exposure, has seen inflows of nearly $6 billion in 2009, making it one of the biggest gainers on the year. Now Pimco is expanding the scope of the inflation-protected space, introducing funds focusing on various maturities.
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Disclosure: No positions at time of writing.