The bond ETF aims to replicate the Lehman Brothers Aggregate Index.
PIMCO’s foray into ETFs “is a part of a much bigger effort that looks to complement our existing products by offering strategies that we believe are of interest to an even broader set of investors,” Mohamed El-Erian, co-chief executive officer of the world’s largest bond fund company, told Reuters.
PIMCO, which oversees $830 billion in assets, is likely to launch its bond ETF later this year or in early 2009.
El-Erian said PIMCO has been working on the ETF for the last 12 months.
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