June 26 (Reuters) - 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 Wednesday.
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 percent.