Size Really Does Matter (BOND, PTTRX, VWO)

The PIMCO Total Return ETF (NYSEARCA:BOND) is outperforming its mutual fund counterpart the PIMCO Total Return Instl (MUTF:PTTRX). Paul Baiocchi, IndexUniverse ETF analyst, discusses what this tells us about broader trends and why investors are flocking to the fund.

See the full CNBC interview below:


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PIMCO Total Return ETF (NYSEARCA:BOND)

The PIMCO Total Return Exchange-Traded Fund (NYSEARCA:BOND) is a diversified portfolio of high quality bonds that is actively managed in an effort to maximize return in a risk-controlled framework. BOND invests primarily in investment grade debt securities, and discloses all portfolio holdings on a daily basis. The average portfolio duration normally varies within two years (plus or minus) of the benchmark Barclays Capital U.S. Aggregate Index, and the fund may not use options, futures or swaps. The fund offers a core bond strategy that is designed to capitalize on opportunities across multiple sectors of the fixed income market.

Top 10 Holdings

  • FNMA TBA 3.5% AUG 30YR: 11.71%
  • U S TREASURY INFLATE PROT BD: 3.85%
  • SLM STUDNT LOAN TST 03-7:  3.65%
  • FED HOME LN MTGE GLBL NT (7MMM):  3.17%
  • MEXICAN FIXED RATE BD M 20:  2.93%
  • FNCI 4.0% TBA TAKE DELIV07/17/12:  2.81%
  • FNMA TBA 4.5% JUL 30YR:  2.50%
  • MEXICAN CETES T-BILLS BI:  2.37%
  • U S TREASURY NOTE:  2.35%
  • FED HOME LN MTGE GLBL NT (3MMM):  2.35%

Vanguard MSCI Emerging Markets ETF (NYSEARCA:VWO)

The Vanguard MSCI Emerging Markets ETF (NYSEARCA:VWO) invests in stocks of companies located in emerging markets around the world, such as Brazil, Russia, China, Korea, and Taiwan. It’s goal is to closely track the return of the MSCI Emerging Markets Index over the long term. The fund has high potential for growth, but also high risk; share value may swing up and down more than that of stock funds that invest in developed countries, including the United States. The ETF was formerly known as Vanguard Emerging Markets ETF.

Top 10 Holdings

  • Samsung Electronics Co Ltd
  • Petroleo Brasileiro SA
  • Taiwan Semiconductor Manufacturing Co Ltd
  • China Mobile Ltd
  • Vale SA
  • China Construction Bank Corp
  • Gazprom OAO
  • America Movil SAB de CV
  • Industrial & Commercial Bank of China
  • Hyundai Motor Co

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