Pimco Bid to Extend Gross Brand to ETF Leaves Advisers Cold

Bill Gross says the exchange-traded version of his $250 billion Pimco Total Return Fund has the potential to become the first hot seller among actively managed ETFs. Investment advisers are giving the fund a cool reception.

“We would just stick with the Total Return Fund rather than going to the ETF,” because the ETF won’t have the same use of derivatives to increase returns as the traditional fund, said Brian Pollak, fixed income portfolio manager for New York-based Evercore Wealth Management LLC, which oversees about $3.2 billion.