Pimco Municipal ETF Fund Details and Fees

The Pimco Municipal ETF Fund is a popular investment option for those seeking tax-free income. It's an exchange-traded fund (ETF) that invests in municipal bonds.

The fund's primary objective is to provide current income exempt from federal income tax. This is achieved by investing in a diversified portfolio of municipal securities.

The Pimco Municipal ETF Fund has an expense ratio of 0.54%, which is relatively low compared to other municipal bond ETFs.

The PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund has a legal name that clearly states its purpose.

The fund is part of the PIMCOFUNDS family, which suggests a focus on fixed income investments.

The fund was launched on December 2, 2009, marking the beginning of its investment journey.

As of the last available data, the fund has 15,770,000 outstanding shares.

The fund operates in the US dollar currency, which is the standard for US-based investments.

Here are the key details about the fund's management:

In the world of municipal bonds, performance metrics are crucial to understanding the health of an investment.

The PIMCO Municipal ETF has shown a YTD return of 0.3%, which is slightly above the category return low of -0.3%.

Its 1-year return of 1.7% is a significant improvement over the category return low of -7.2%, but still trails the category return high of 37.9%.

The 3-year and 5-year returns are annualized and come in at 0.2% and 1.1% respectively, with the 10-year return sitting at 2.1%.

Here's a breakdown of the ETF's performance over the past few years:

It's worth noting that the ETF's performance can be volatile, as seen in the 2022 return of -6.6%, which is significantly lower than the category return low of -39.7%.

Risk Analysis is a crucial step in evaluating PIMCO Municipal ETF. The fund's investment strategy involves investing in municipal securities, which can be affected by credit risk, interest rate risk, and market risk.

PIMCO Municipal ETF has a low credit risk due to its focus on high-quality municipal bonds. This is evident in the fund's investment in bonds with a high credit rating, such as AAA-rated bonds.

The fund's interest rate risk is managed through a combination of short-term and long-term bonds. This is achieved by investing in bonds with varying maturities, which helps to reduce the impact of interest rate changes on the fund's value.

PIMCO Municipal ETF has a moderate market risk due to its exposure to the municipal bond market. However, the fund's diversification strategy helps to mitigate this risk by spreading investments across different sectors and regions.

The fund's risk profile is further reduced by its low duration, which means it is less sensitive to changes in interest rates. This is a result of the fund's focus on short-term bonds, which have a lower duration than long-term bonds.

The Pimco Municipal ETF offers a range of income and distribution options for investors. The fund's 0.3% YTD Total Return suggests a relatively stable performance over the past year.

Its 3 Yr Annualized Total Return of 0.2% indicates a modest growth over the past three years. The 5 Yr Annualized Total Return of 1.1% shows a more significant improvement over the past five years.

The fund distributes capital gains annually, which can impact investors' tax liabilities. The Net Income Ratio of 1.72% indicates that a significant portion of the fund's income is derived from net income.

Investors can also expect a monthly dividend distribution, with a dividend yield of 3.2%. This regular income stream can help investors generate returns on their investment.

Here's a summary of the fund's income and distribution characteristics:

Fees and expenses are an essential part of investing in Pimco Municipal ETF. Operational fees, which include the expense ratio, management fee, and administrative fee, make up a significant portion of the total costs.

The expense ratio is 0.35% of the assets under management (AUM), ranking 92.14% in its category. This means that for every $10,000 invested, you'll pay $35 per year.

Management fees are also 0.35% of AUM, with a range of 0.00% to 1.20% in its category. This fee is a significant cost for investors.

Here's a summary of the operational fees:

It's worth noting that some fees, like the 12b-1 fee and administrative fee, are not applicable to Pimco Municipal ETF.

When evaluating the fees associated with a fund, it's essential to consider the operational fees. These fees can eat into your returns, so it's crucial to understand what you're paying for.

The Expense Ratio is a significant operational fee, coming in at 0.35% of the fund's assets under management (AUM).

In comparison, the Category Return Low is a mere 0.01%, while the Category Return High is a respectable 8.02%. This highlights the importance of choosing a fund with a low expense ratio.

The Management Fee is also a notable operational fee, clocking in at 0.35% of AUM. This fee is charged for the fund's management and investment decisions.

Here's a breakdown of the operational fees mentioned:

The 12b-1 Fee is not applicable to this fund, which is a relief for investors who don't want to pay unnecessary fees. However, it's essential to note that this fee can range from 0.00% to 1.00% of AUM.

Sales fees can be a significant drag on your investment returns. In fact, some sales fees can range from 0.25% to 5.00% of your assets under management (AUM).

Let's take a look at the numbers. If you're looking at a front-load sales fee, you can expect to pay around 0.50% to 4.75% of your AUM. Meanwhile, a deferred load sales fee can range from 0.25% to 5.00% of your AUM.

Here's a breakdown of the sales fees we've discussed:

Trading fees are a crucial aspect of investing, and it's essential to understand what you're paying for. MUNI fees are a percentage of the assets under management (AUM).

The maximum redemption fee for MUNI is N/A, which means there isn't a specific fee for redeeming your investment. This fee is typically a percentage of the investment amount.

Category return can vary, with a low of 1.00% and a high of 1.00% for MUNI. This means that even in the best-case scenario, you can expect a return of at least 1.00%.

Here's a breakdown of the trading fees for MUNI: