PTY - BOND: Does This Active Bond Fund Deliver?
2024-03-19 05:28:30 ET
Summary
- Bonds have struggled as investors digest interest rate news, but rates are expected to be cut in 2024.
- PIMCO Active Bond Exchange-Traded Fund has struggled in the face of rising rates and failed to beat indexed competitors or money markets.
- The flexibility and freedom of PIMCO's investment mandates have contributed to its outperformance in other funds, but BOND is limited in how it can invest.
- A combination of money markets or indexed bond ETFs and closed-end funds may provide more attractive risk-adjusted returns.
Bonds are down but don't count them out for 2024 entirely. Following a spectacular end to 2023, bond performance has been stagnant as investors look to digest interest rate news. Over the past year, investors continued to push down yields and raise bond prices fueled by encouraging news from the Federal Reserve that interest rates may decline in the near term. Just recently, Jerome Powell testified before Congress that the Federal Reserve expects that rates will be cut "at some point" in 2024....
BOND: Does This Active Bond Fund Deliver?