Seeking Alpha – ETFs & Funds

BOND: Active Bond ETF Beating The Benchmark, But Lagging Competitors

PIMCO’s Active Bond ETF (BOND) is an actively managed, multi‑sector bond fund launched in 2012, holding nearly 1,900 securities with a 30‑day SEC yield of 4.56% and a net expense ratio of 0.54%. Since inception it has generated a total return of 53.3%, beating the Vanguard Total Bond Market benchmark by 1.1 percentage points annualized and outpacing inflation. However, its recent performance lags peers: it ranks last in total return and exhibits the highest volatility and deepest drawdown among comparable active bond ETFs. The fund’s turnover is 496%, reflecting frequent trading to meet its duration and credit‑allocation targets.