PIMCO Quietly Launches TENZ
Without any fanfare, PIMCO quietly launched another Treasury ETF. The PIMCO 7-15 Year U.S. Treasury Index Fund (TENZ) was listed for trading on September 11, 2009. The lack of announcement from PIMCO has resulted in numerous zero volume days for TENZ.
The underlying index is the Merrill Lynch 7-15 Year US Treasury Index. The new ETF has expenses capped at 0.15% until October 31, 2010. Additional information can be found in the fact sheet and the fund snapshot.
This is the first ETF that attempts to straddle the benchmark 10-year maturity range and could therefore be extremely popular once investors learn about it. Primary competitors include iShares Barclays 7-10 Year (IEF) and iShares Barclays 10-20 Year Treasury (TLH). The two iShares ETFs also have an expense ratio of 0.15%.
Disclosure: no positions