The Pimco Total Return ETF
] isn't flying quite as high anymore, at least not relative to its mutual fund big brother. Jason Kephart of InvestmentNews draws attention
to the fact that the ETF and its mutual fund version have moved closer to each other performance-wise since May 29.
The ETF version beat the mutual fund by 400 basis points from March 1 to May 29 according to Morningstar data. Yet it has returned 2.81 percent since May 29, while its mutual fund counterpart has returned 2.14 percent.
Acording to Douglas Hodge
, COO of Pimco, Gross' team has expected that the ETF and mutual fund would track each other closely.
"We're completely agnostic when it comes to which investors choose," Hodge said. "We've had tremendous flows into both the ETF and the mutual fund. We think they can grow together."
Stay ahead of the news ... Sign up for our email alerts now