Bill Gross on the “Secret Sauce” in PIMCO’s New Total Return ETF (TRXT)

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March 16, 2012 12:15pm NYSE:TRXT

Bond king Bill Gross, PIMCO’s founder, co-chief investment officer and manager of the world’s largest mutual fund —the Pimco Total Return Fund (PTTRX) — added another title to his job description earlier this month with the launch of the actively


managed Total Return Exchange Traded Fund (NYSEArca:TRTX). The bond ETF, which launched on March 1st, was among the most highly anticipated new trading products to hit the market in years.

“We wanted to give investors the chance to purchase the Total Return fund or a replica of the Total Return fund through the New York Stock Exchange, to access a little more liquidity, and provide more of an ability to do in-and-out trading,” Gross tells Breakout in the attached video.

However, this is not an exact replica of the gigantic $250 Billion Total Return mutual fund. “Regulations do prohibit the ETF from utilizing options, and futures, and swaps,” Gross explains. “Those aren’t a considerable portion of the Total Return Fund, but nonetheless, there’s going to be those minor differences in terms of the non-derivative characteristic.”

See the full interview below:

 


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