Categories: U.S. Investing

Why Blackrock & Vanguard Are Crushing Pimco This Year

Why Blackrock & Vanguard Are Crushing Pimco This Year (Bloomberg)

It’s not often that Pacific Investment Management Co (Pimco) has to play catch up. But that’s exactly what’s happening right now with regard to bond exchange-traded funds (ETFs). According to data compiled by Bloomberg, as of March 21, 2014, Bill Gross’ bond behemoth had taken in just $1 billion in new bond ETF deposits — well behind Blackrock’s $2.8 billion and Vanguard’s $2.5 billion. According to David Nadig, director of research at ETF.com, Pimco trailed because previously, it didn’t offer the same type of super-low-cost ETF funds that the other two do. But it sorely needs to. In 2013, bond ETFs took in $9.7 billion, while Pimco’s bond mutual funds lost $88.4 billion to redemptions. That’s a big part of the reasoning behind Pimco launching 19 new bond ETFs in January. But is that enough of a reason to get you to invest in these new funds?

Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.

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