June 26 The PIMCO Total Return Exchange-Traded
Fund, the ETF version of Bill Gross's flagship Total
Return Fund, is suffering more than three times the
net outflows in June it had in May, according to Lipper data on
Better known by its ticker symbol, BOND, the ETF has had
outflows of $387 million so far this month, Lipper said, after
May's outflows of $107.8 million - the ETF's first month of
outflows since its launch in February 2012.
The nature of ETFs has exaggerated the inflow and outflow
figures, said Jeff Tjornehoj, head of Lipper Americas Research.
"It's all part of the bargain ETFs have struck with
investors: they're very easy to get into, which makes them easy
to get out of," he said.
"BOND also attracted impressive flows in April - over $150
million per week - and it may be those late entrants that are
changing their minds now."
Bonds generally have taken a hit on fears of a future
Federal Reserve rollback of its economic stimulus program, and
the ETF has actually outperformed its older sister, the PIMCO
Total Return Fund.
The ETF, which has $4.681 billion in assets under
management, is down 2.71 percent year-to-date while the PIMCO
Total Return Fund is down 4.03 percent for the same period
through June 25, according to Lipper.
Since BOND's launch, the ETF has outperformed the PIMCO
Total Return Fund by a significant amount: BOND is up 8.72
percent while the PIMCO Total Return Fund is up 2.98 percent.
The fear that the Federal Reserve will taper off its monthly
bond buying has slammed global stocks and, in particular, bonds,
with the yield on the 10-year Treasury bond surging nearly a
full percentage point since May 2, when it closed at 1.62