The New York Stock Exchange, part of Intercontinental Exchange, Inc. (NYSE: ICE), has announced that the PIMCO Active Bond Exchange-Traded Fund (NYSE: BOND) has begun trading as an NYSE-listed ETF.
The exchange writes that it becomes the first active ETF to list on the NYSE in the past 15 years and the first-ever active ETF to be listed on the Big Board.
The event marked the completion of the PIMCO Active Bond Exchange-Traded Fund’s listing transfer from NYSE Arca, NYSE’s fully electronic exchange.
The exchange writes that by listing on the NYSE, the PIMCO Active Bond Exchange-Traded Fund can take full advantage of the NYSE’s unique floor-based trading model, which combines cutting-edge technology with accountability and human judgment to enhance market quality and improve trading outcomes for investors. In recent years, the Securities and Exchange Commission approved a series of rule changes that allow for a broad range of ETFs to list on the NYSE.
“We are excited to welcome the PIMCO Active Bond Exchange-Traded Fund to the New York Stock Exchange, making history as the first active ETF to ever list on the NYSE floor,” says Douglas Yones, the NYSE’s Head of Exchange Traded Products. “The NYSE is thrilled to be able to bring ETFs to our iconic trading floor, where they can leverage a unique trading model that combines industry-leading technology and human judgment as well as the greater visibility inherent in an NYSE listing.”
“This year’s dramatic rise in yields makes bonds more attractive for patient investors looking for returns in a volatile environment,” says David Braun, PIMCO Managing Director and Portfolio Manager. “We believe actively-managed core bond strategies like BOND can play an important role as an income generator and a diversifier within portfolios, especially during an economic slowdown.”
The NYSE writes that its ability to list ETFs on both the NYSE and NYSE Arca exchanges gives issuers an even broader set of tools to reach global investors. ETFs that are actively managed or invest in less actively traded securities may benefit from a listing on the NYSE, the firm says, with its emphasis on leveraging human judgment to reduce volatility. Listing on either exchange provides ETF issuers with membership in the NYSE community, which brings a number of advantages including the incomparable visibility that stems from listing on an NYSE exchange.