"The PIMCO Active Bond ETF sits near $92 after a 6% total return over the past year, while Fidelity's and BlackRock's ETFs are positioned to catch fund flows from mutual fund-to-ETF conversions."
"BOND carries the DNA of PIMCO Total Return, while FBND runs the same strategy framework as Fidelity's flagship bond mutual funds, charging a 0.4% expense ratio."
"The single variable with the most leverage on this trio over the next 12 months is whether the Fed resumes cutting from its 3.75% upper bound, where it has held since December 11, 2025."
"FBND holds 42% in U.S. government paper and 28% in corporates against the Bloomberg US Aggregate, while BOND runs a similar core posture."
The PIMCO Active Bond ETF, Fidelity Total Bond ETF, and iShares High Yield Muni Active ETF are positioned to capture fund flows from mutual fund-to-ETF conversions. These conversions are expected to increase significantly, with over 100 anticipated in 2026. BOND, FBND, and HIMU are favored due to their strong investment teams and track records. The Federal Reserve's interest rate decisions will significantly impact these ETFs, particularly if rates rise above 4.6% or fall below 4%. FBND and BOND maintain similar core positions in U.S. government and corporate bonds.
Read at 24/7 Wall St.
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