video transcript

Now there's a cheaper way to buy a piece of the date with the bond Bill Gross -- -- 250 billion dollar Pimco total return five. And coaches license BP F version of the fine. Now that's -- lagged the market last year but is being the benchmarks this year. So should you -- ETF -- the original mutual fund you're three things you need to know. The two versions may sound the same but they're different. ETFs trade like stocks and can be bought or sold during the trading day. Mutual fund prices percent at end of the day and the differences run deeper the -- is cheaper. And what charges this 55 basis points for the heat he had some thirty basis points less than -- mutual fund for retail investors. Also the investments differs so that you hear -- closely tracked the mutual fund. Be careful not used groups such as credit default swaps or options those are tools that. Gross uses to give us bond fund leverage and juice returns. Index universe is dignity says the absence of those derivatives may make for a slightly more volatile province. When the market plunges the CVS which -- is insurance could pay off that could help the mutual fund outperform. Yet but if the market rallies. On redeemed CDS adds to portfolios cost to the mutual fund could underperform the -- If you're looking for the full Bill Gross experience including the derivatives. And pick the fun but if you're looking to save costs and can do without the derivatives. Go for the UPS if you still can't decide. -- -- suggest passively managed bond ETFs that are a lot cheaper. Some 45 basis points less after such as bank by total bond market and Schwab US and -- bond. For more investing tips check out videos. --