PIMCO’s Active Bond ETF Draws Institutional Confidence in a Market That Rewards Skill

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On October 9, 2025, ECLECTIC ASSOCIATES INC /ADV disclosed a buy of 87,752 shares of PIMCO Active Bond Exchange-Traded Fund (NYSE:BOND), an estimated $8.10 million trade based on the quarter’s average price.

What happened

According to the SEC filing dated October 9, 2025, ECLECTIC ASSOCIATES INC /ADV increased its holding in PIMCO Active Bond Exchange-Traded Fund (NYSE:BOND) by 87,752 shares during the quarter. The estimated $8.10 million trade was for the quarter, bringing the fund’s total position in the bond exchange-traded fund to 187,980 shares, valued at $17.55 million as of September 30, 2025.

What else to know

ECLECTIC ASSOCIATES INC /ADV increased its bond ETF stake, which now accounts for 3.22% of its reportable AUM.

Top holdings after the filing:

• BNDX: $46.56 million (8.5% of AUM)
• CGXU: $44.26 million (8.1% of AUM) as of September 30, 2025
• VIG: $40.92 million (7.5% of AUM) as of September 30, 2025
• CGGR: $30.27 million (5.6% of AUM) as of September 30, 2025
• DFIV: $28.02 million (5.1% of AUM) as of September 30, 2025

As of October 8, 2025, shares were priced at $93.20, with a one-year alpha of (13.25) percentage points versus the S&P 500 for the period ending October 8, 2025.

The fund reported a 5.06% annualized dividend yield as of October 9, 2025, and was 1.07% below its 52-week high as of October 9, 2025.

Company overview

Company snapshot

PIMCO Active Bond Exchange-Traded Fund is a large, actively managed fixed income fund with a market capitalization of $5.96 billion. The fund leverages PIMCO's expertise to dynamically allocate across investment grade and select high yield bonds, using derivatives to enhance flexibility and manage risk.

The ETF is designed for investors seeking regular income and capital preservation through exposure to a broad array of fixed income securities. It is structured as an actively managed ETF, the fund charges an expense ratio.

PIMCO Active Bond Exchange-Traded Fund's investment strategy focuses on a diversified portfolio of fixed income instruments, primarily investment grade debt, with up to 30% allocation to high yield securities.

The ETF's underlying holdings include a mix of bonds with varying maturities, utilizing derivatives such as options, futures, and swaps for portfolio management.

Foolish take

Eclectic Associates' $8.1 million purchase of the PIMCO Active Bond ETF reflects a growing confidence in active bond management. The decision isn't necessarily about predicting where rates go next. It is more about trusting experience to find a steady income in parts of the bond market where value still exists.

PIMCO's Active Bond ETF gives its managers the flexibility to fine-tune portfolio sensitivities to rate changes through derivatives and shift exposure across different maturities. That freedom matters when spreads move independently of policy headlines. Rather than tracking an index, the team seeks incremental ways to add value across the full market cycle.

Income has taken on new significance as bond markets grow more selective, and management skills matter when returns are driven by more than interest rates. For long-term investors, a fund like PIMCO Active Bond ETF aims to deliver a steady return by maintaining a high credit quality and avoiding large directional bets. That approach can add balance to a portfolio without taking on unnecessary risk — and that steady balance is what fixed income is meant to deliver.

Glossary

Actively managed ETF: An exchange-traded fund where managers select and adjust holdings, rather than tracking a fixed index.

Fixed income instruments: Investments that provide regular interest payments, such as bonds or other debt securities.

Investment grade debt: Bonds rated as relatively low risk of default by credit rating agencies.

High yield securities: Bonds with lower credit ratings, offering higher interest rates to compensate for increased risk.

Derivatives: Financial contracts whose value is based on underlying assets, such as options, futures, or swaps.

Expense ratio: The annual fee, expressed as a percentage of assets, that a fund charges to cover operating costs.

Dividend yield: The annual dividend income from an investment, shown as a percentage of its current price.

Alpha: A measure of an investment's performance relative to a benchmark, indicating value added or lost by active management.

Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.

Capital preservation: An investment goal focused on preventing loss of principal while earning modest returns.

Portfolio management: The process of selecting and overseeing a group of investments to meet specific objectives.

Reportable AUM: The portion of assets under management that must be disclosed in regulatory filings.

Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.