Traditional Firms Will Follow PIMCO

Industry observers said that PIMCO's entry into the exchange-traded fund space will pave the way for other traditional long-only fund firms to move into ETFs

Paul Justice, ETF strategist at Morningstar, said most of the big name firms will follow PIMCO’s lead and enter the space in the next year or two because they already have the research capabilities and ETFs are not substantially different from traditional fund offerings.

PIMCO last week filed to launch actively-managed exchange-traded funds, a move that will help differentiate them from other providers whose ETFs are for the most part passively-managed, said Paul Mazzilli, director of ETF research at Morgan Stanley.

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