Following last week’s discussion of ETFs (exchange traded funds) with Investment News, CIA have discussed their views with Forbes.
Pimco’s Total Return ETF will be listed on the NYSE Acra on March 1st. The new ETF will invest the same goals as its traditional cousin, save the use of derivative securities.
Financial investment expert and chief investment officer at CIA, Mitchell Reiner told Forbes “We’ll be weighing the option”. Reiner has said that investors and their advisors need to look at total transactions, transaction costs and holding period. Each of these relate to expense ratios and performance differences.
As specialist financial advisors CIA are aware of the recent increase in popularity of ETFs and were recently queried by investmentnews.com regarding research CIA were undertaking in order to identify the best fixed income investments available today.
The derivatives used by the Pimco Total Return Fund, such as interest rate and credit default swaps, options, swaptions and currency forwards are used to express views on everything from corporate and government bonds and trends in the currency market.
The only compelling argument for sticking with the traditional fund is the added juice to be gained by the use of derivatives, and the Pimco Total Return ETF will put that juice top the test.
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