Pimco Active Bond ETF Investing for Beginners

Investing in Pimco Active Bond ETFs can be a great way to diversify your portfolio and earn steady returns. Pimco is a well-established investment management company with a long history of success.

Pimco Active Bond ETFs are designed to provide investors with a low-cost way to access a wide range of bond investments. They offer a range of products that cater to different investor needs and risk tolerances.

One of the key benefits of Pimco Active Bond ETFs is their ability to adapt to changing market conditions. They use advanced strategies and techniques to actively manage their bond portfolios and maximize returns.

Investors can choose from a variety of Pimco Active Bond ETFs that focus on different types of bonds, such as government and corporate bonds. This allows them to tailor their investment portfolio to their individual goals and risk preferences.

The PIMCO Bond ETF has an operational fee of 0.71% of its assets under management (AUM), which is relatively low compared to its category.

The ETF's expense ratio is 0.71%, which includes management and administrative fees. The management fee is 0.55% of AUM, making it a significant portion of the overall expense ratio.

Here's a breakdown of the ETF's operational fees:

In terms of sales fees, the PIMCO Bond ETF does not charge a front load, but it does have a deferred load of up to 4.00% of AUM, which is relatively high compared to its category.

Operational fees can be a significant expense for investors. The expense ratio of a fund is a key operational fee to consider, and in this case, it's 0.71% of the fund's assets under management (AUM).

The expense ratio is a measure of the total expenses of the fund, including management fees, administrative fees, and other costs. A low expense ratio can help investors save money over time.

Here's a breakdown of the operational fees associated with this fund:

It's worth noting that the management fee is relatively low, at 0.55% of AUM. This suggests that the fund is managed efficiently, which can be a positive factor for investors.

Sales fees can be a significant expense for investors. They are often expressed as a percentage of the fund's assets under management (AUM).

For example, a front-load sales fee can be as high as 5.75% of the AUM, while a deferred load sales fee can be as low as 1.00% of the AUM.

The table below breaks down the sales fees for different categories:

Keep in mind that these fees can add up over time, so it's essential to understand the sales fees associated with your investments.

The PIMCO Bond ETF has a solid track record, with a 1-year return of 3.5% and a 5-year return of -0.1% annualized.

In terms of ranking, the ETF has consistently performed well, with a 1-year rank of 14.21% and a 5-year rank of 43.20%.

Here's a breakdown of the ETF's performance over different time periods:

The ETF's performance has been strong in some years, like 2020 when it returned 7.8%, but weaker in others, like 2022 when it returned -14.6%.

The ETF's ranking has also fluctuated over time, with a high of 33.47% in 2023 and a low of 0.73% in the YTD period.

The PIMCO Active Bond Exchange-Traded Fund is a solid option for investors, with a strong track record since its inception on February 29, 2012.

The fund's manager, Jerome Schneider, oversees the investment strategy, which is a key factor in its performance.

The fund has a large number of shares outstanding, with 34,630,000 shares available.

Here's a breakdown of the fund's sector allocation:

The fund details are a crucial part of understanding a fund's identity. The PIMCO Active Bond Exchange-Traded Fund has a legal name that clearly identifies it as a specific investment product.

The fund's inception date is February 29, 2012, which is an interesting date to note. This date might be relevant if you're considering investing in a fund that's been around for a while.

The fund has a significant number of shares outstanding, with 34,630,000 shares available. This could be important information for investors who want to get a sense of the fund's size and liquidity.

Here's a summary of the fund's basic details:

The fund's currency is USD, which means it's denominated in US dollars. This could be relevant for investors who are looking to invest in a fund that's tied to the US economy.

Let's take a closer look at the fund's breakdown. The fund has a total of 1259 holdings, with a net asset value of $5.12 billion.

The fund's top 10 holdings account for 35.09% of its total weighting, with the US Treasury N/B 02/43 3.8756.19% taking the lead at 53.51%.

In terms of sector breakdown, the fund is heavily weighted towards securitized assets, making up 42.26% of its total weighting. This is followed closely by corporate assets at 31.09%.

Here's a breakdown of the fund's sector allocation:

The fund's return on investment varies across sectors, with securitized assets returning up to 98.40% and corporate assets returning up to 100.00%.

The geographic breakdown of a bond fund is an essential aspect to consider. The fund is weighted at 104.15% towards the US market.

Breaking it down further, we can see that the US market is responsible for the majority of the fund's returns. With a return range of 0.00% to 9042.62%, it's clear that the US market has a significant impact on the fund's overall performance.

The non-US market, on the other hand, has a much smaller weighting of 0.01%. This means that the returns from the non-US market are relatively insignificant compared to the US market.

Here's a breakdown of the geographic distribution of the fund:

The BOND % Rank for the US market is 14.33%, indicating that it is not the top performer in the fund. In contrast, the non-US market has a BOND % Rank of 39.88%, which is significantly higher, indicating that it is a stronger performer in the fund.

Let's take a closer look at the Net Income Ratio of the BOND fund. The Net Income Ratio of the BOND fund is 2.04%.

This is significantly higher than the Category Low of -1.28%, which suggests that the fund is performing well in this regard.

The Net Income Ratio is also lower than the Category High of 4.79%, which indicates that the fund is positioned within the expected range for its category.

The BOND fund's Net Income Ratio ranks 29.35% compared to its category. This means it's performing better than nearly 70% of the funds in its category.