PIMCO Battles iShares for Treasuries

The new PIMCO 1-3 Year US Treasury ETF (TUZ) has been trading for two days now, as the bond giant’s first stab at the ETF market. The 1-3 Year U.S. Treasury Index Fund is a passively managed exchange-traded fund comprising primarily the high-quality component securities of the Merrill Lynch 1-3 Year U.S. Treasury Index. Management fees are listed at 15 basis points, which is the same as its primary competitor, the $7 billion iShares Barclays 1-3 Year Treasury Bond Fund (SHY). Given PIMCO’s position in the bond community, it shouldn’t be too hard to chip away at the mammoth iShares fund over time.