PIMCO to launch ETF version of Gross' Total Return fund

PIMCO has put forward a SEC filing for the launch of an exchange traded version of Bill Gross' Total Return fund, the world's largest bond fund, CNBC has reported.

The PIMCO Total Return Exchange-Traded fund will invest at least 65% of its total assets in a diversified portfolio of fixed income instruments of varying maturities.

Most will be high quality bonds, while the fund can also invest 10% of its assets in junk bonds and 15% in emerging markets, with foreign currency exposure limited to 20%.

PIMCO has a strong track record of success in ETFS, with MINT - a short term bond fund - holding roughly $1bn in assets, CNBC reports.

Unlike traditional ETFs, which track an index, actively managed funds employ a manager who actively picks investments, including other ETFs as well as individual stocks and bonds.