PIMCO's Total Return ETF outperforms older sibling during its first month

PIMCO's Total Return ETF was launched on March 1 and designed to replicate the legendary Total Return Mutual Fund, which has produced annualized returns of 8.3% since its inception nearly 25 years ago. The ETF outperformed the mutual fund by 166 basis points in its first month - posting a return of 1.78% vs. 0.12% for the fund. Some have suggested that the limited use of derivatives will be a disadvantage for the ETF, but the first month in the books proved otherwise.