Chairman’s Letter

Important Information About the Funds

Expense Examples

Financial Highlights

Statements of Assets and Liabilities

Statements of Operations

Statements of Changes in Net Assets

Statements of Cash Flows

Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

Glossary

Federal Income Tax Information

Management of the Trust

Privacy Policy

PIMCO 1-3 Year U.S. Treasury Index Exchange-Traded Fund

PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund

PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund

PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund

PIMCO Broad U.S. TIPS Index Exchange-Traded Fund

PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund

PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund

PIMCO Diversified Income Active Exchange-Traded Fund

PIMCO Enhanced Short Maturity Active Exchange-Traded Fund

PIMCO Global Advantage^® Inflation-Linked Bond Active Exchange-Traded Fund

PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund

PIMCO Low Duration Active Exchange-Traded Fund

PIMCO Short Term Municipal Bond Active Exchange-Traded Fund

PIMCO Total Return Active Exchange-Traded Fund

The first half of the reporting period through mid-February 2016 was marked by ongoing concerns over the global impact of a slowdown in the Chinese economy, which drove commodity prices and inflation expectations generally lower. By March 2016, a recovery in the price of oil and expectations of lower interest rates for longer supported a rally in risk assets. The Bank of Japan (“BOJ”) and the People’s Bank of China, for example, indicated their intent for further policy easing, with the BOJ resorting to a negative interest rate policy in February 2016. The European Central Bank (“ECB”) also resorted to unconventional monetary policy with additional easing measures and an expansion of its quantitative easing program by shifting its focus toward domestic credit and pushing government yields into negative territory. In June 2016, the ECB began purchasing corporate bonds to help invigorate economic growth and stimulate inflation in the region.

In the U.S., concerns regarding the global impact of tightening financial conditions and renewed U.S. dollar strength kept the Federal Reserve (“Fed”) on hold at their June 2016 meeting, after slightly raising interest rates at their December 2015 meeting. In addition, the U.S. dollar appreciated against most European and emerging market currencies, while falling against the Japanese yen. The U.S. interest rate yield curve flattened as the ten-year U.S. Treasury yield rallied to all-time lows and short-term rates rose with the initial December 2015 Fed rate hike. Revised first quarter 2016 U.S. gross domestic product (“GDP”) data released in late June was marginally stronger as retail sales, housing and consumer sentiment data indicated an improving economy.

Market movements and news headlines at the end of the reporting period were dominated by the unexpected outcome of the U.K. referendum on June 23, 2016. Initial investor reaction to the Brexit vote was largely “risk-off” as various assets re-priced to the surprise outcome, with U.S. Treasuries, the Japanese yen and gold headlining a safe-haven rally. However, aside from the Pound Sterling and European and Japanese equities, most asset classes recovered in the ensuing week as investors reassessed the impact of the Brexit vote on global growth expectations.

U.S. Treasuries, as represented by the Barclays U.S. Treasury Index, returned 6.22% for the reporting period. Yields beyond one-year maturities declined across the U.S. Treasury yield curve as a more dovish tone from the Fed after its June meeting coupled with the surprise result of the U.K. referendum pushed expectations for policy normalization further into the future. Investors also looked to U.S. Treasuries for their perceived safety and as a source of high-quality yield. The benchmark ten-year U.S. Treasury note yielded 1.49% at the end of the reporting period, down from 2.35% on June 30, 2015.

U.S. Treasury Inflation-Protected Securities (“TIPS”), as represented by the Barclays U.S. TIPS Index, returned 4.35% over the reporting period. Global inflation-linked bonds (“ILBs”), as represented by the Barclays Universal Government Inflation-Linked Bond Index, returned 2.98% over the reporting period. ILB returns were supported by a rally in global interest rates as China growth concerns and U.K. referendum uncertainty drove risk-off sentiment. U.K. index-linked Gilts saw outsized returns, with yields moving sharply lower toward the end of the reporting period on Brexit headlines. Developed market ILBs sharply underperformed comparable nominal sovereign bonds, as breakeven inflation rates were pressured by risk-off trading and volatile energy markets.

U.S. investment grade credit, as measured by the Barclays U.S. Credit Index, returned 7.55% over the reporting period. Global investment grade corporate spreads tightened alongside reduced global growth concerns and positive supply/demand technicals. The U.S. short-dated high yield debt market, as represented by the BofA Merrill Lynch 0-5 Year U.S. High Yield Constrained Index, returned 0.70% over the reporting period, as the asset class experienced volatility alongside volatile commodity prices and risk sentiment. Performance turned positive during the second part of the reporting period as commodity prices generally rose and high yield bond mutual funds experienced inflows amid investor demand for higher yielding instruments.

Tax-exempt municipal bonds, as represented by the Barclays Municipal Bond Index, returned 7.65% over the reporting period. Positive municipal bond returns were driven by robust demand for tax-exempt income amid volatile global market sentiment. Municipal bond mutual funds recorded over $37 billion of net inflows over the reporting period, which absorbed elevated new issue supply as issuers continued to recognize debt savings in the low interest rate environment. Despite negative credit headlines and associated volatility surrounding select large issuers, overall municipal fundamentals were supported by the continued U.S economic expansion.

Sincerely,

Brent R. Harris

Chairman of the Board,
PIMCO ETF Trust

August 22, 2016

PIMCO 1-3 Year U.S. Treasury Index Exchange-Traded Fund

PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund

PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund

PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund

PIMCO Broad U.S. TIPS Index Exchange-Traded Fund

PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund

PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund

PIMCO Diversified Income Active Exchange-Traded Fund

PIMCO Enhanced Short Maturity Active Exchange-Traded Fund

PIMCO Global Advantage^® Inflation-Linked Bond Active Exchange-Traded Fund

PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund

PIMCO Low Duration Active Exchange-Traded Fund

PIMCO Short Term Municipal Bond Active Exchange-Traded Fund

PIMCO Total Return Active Exchange-Traded Fund

U.S. Treasury Obligations

Short-Term Instruments

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO 1-3 Year U.S. Treasury Index Exchange-Traded Fund seeks to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch 1-3 Year U.S. Treasury Index^SM (the “Underlying Index”), by investing under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities (“Component Securities”) of the Underlying Index. The Fund may invest the remainder of its assets in Fixed Income Instruments that are not Component Securities, but which PIMCO believes will help the Fund track its Underlying Index, as well as in cash and investment grade, liquid short-term instruments, forwards or derivatives, such as options, futures contracts or swap agreements, and shares of affiliated bond funds. The Fund invests in a representative sample of securities included in the Underlying Index that collectively has an investment profile similar to the Underlying Index. Due to the use of representative sampling, the Fund may not hold all of the securities that are included in the Underlying Index. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

Changes in yields in the 1- to 3-year segment of the U.S. Treasury yield curve were mixed, negatively impacting the price return of both the Fund and the Underlying Index. Returns due to income positively contributed to performance for both the Fund and the Underlying Index. The net result was positive performance for both the Fund and the Underlying Index.

U.S. Treasury Obligations

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund seeks to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch Long U.S. Treasury Principal STRIPS Index^SM (the “Underlying Index”), by investing under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities (“Component Securities”) of the Underlying Index. The Fund may invest the remainder of its assets in Fixed Income Instruments that are not Component Securities, but which PIMCO believes will help the Fund track its Underlying Index, as well as in cash and investment grade, liquid short-term instruments, forwards or derivatives, such as options, futures contracts or swap agreements, and shares of affiliated bond funds. The Fund invests in a representative sample of securities included in the Underlying Index that collectively has an investment profile similar to the Underlying Index. Due to the use of representative sampling, the Fund may not hold all of the securities that are included in the Underlying Index. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

Yields in the 25+ year segment of the U.S. Treasury STRIPS yield curve declined, positively contributing to performance for both the Fund and the Underlying Index.

U.S. Treasury Obligations

Short-Term Instruments

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund seeks to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch 1-5 Year U.S. Inflation-Linked Treasury Index^SM (the “Underlying Index”), by investing under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities (“Component Securities”) of the Underlying Index. The Fund may invest the remainder of its assets in Fixed Income Instruments that are not Component Securities, but which PIMCO believes will help the Fund track its Underlying Index, as well as in cash and investment grade, liquid short-term instruments, forwards or derivatives, such as options, futures contracts or swap agreements, and shares of affiliated bond funds. The Fund invests in a representative sample of securities included in the Underlying Index that collectively has an investment profile similar to the Underlying Index. Due to the use of representative sampling, the Fund may not hold all of the securities that are included in the Underlying Index. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

Real yields, or the rates of return in excess of expected future inflation, declined across the U.S. Treasury Inflation-Protected Securities yield curve, resulting in positive performance for both the Fund and the Underlying Index.

A positive inflation accrual, or change in the Consumer Price Index, applied to the principal of underlying securities also had a positive impact on performance for both the Fund and the Underlying Index.

U.S. Treasury Obligations

Short-Term Instruments

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund seeks to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch 15+ Year U.S. Inflation-Linked Treasury Index^SM (the “Underlying Index”), by investing under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities (“Component Securities”) of the Underlying Index. The Fund may invest the remainder of its assets in Fixed Income Instruments that are not Component Securities, but which PIMCO believes will help the Fund track its Underlying Index, as well as in cash and investment grade, liquid short-term instruments, forwards or derivatives, such as options, futures contracts or swap agreements, and shares of affiliated bond funds. The Fund invests in a representative sample of securities included in the Underlying Index that collectively has an investment profile similar to the Underlying Index. Due to the use of representative sampling, the Fund may not hold all of the securities that are included in the Underlying Index. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

Real yields, or the rates of return in excess of expected future inflation, decreased across the U.S. Treasury Inflation-Protected Securities yield curve, resulting in positive performance for both the Fund and the Underlying Index.

A positive inflation accrual, or change in the Consumer Price Index, applied to the principal of underlying securities also had a positive impact on performance for both the Fund and the Underlying Index.

U.S. Treasury Obligations

Short-Term Instruments

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO Broad U.S. TIPS Index Exchange-Traded Fund seeks to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch U.S. Inflation-Linked Treasury Index^SM (the “Underlying Index”), by investing under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities (“Component Securities”) of the Underlying Index. The Fund may invest the remainder of its assets in Fixed Income Instruments that are not Component Securities, but which PIMCO believes will help the Fund track its Underlying Index, as well as in cash and investment grade, liquid short-term instruments, forwards or derivatives, such as options, futures contracts or swap agreements, and shares of affiliated bond funds. The Fund invests in a representative sample of securities included in the Underlying Index that collectively has an investment profile similar to the Underlying Index. Due to the use of representative sampling, the Fund may not hold all of the securities that are included in the Underlying Index. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

Real yields, or the rates of return in excess of expected future inflation, decreased across the U.S. Treasury Inflation-Protected Securities yield curve, resulting in positive performance for both the Fund and the Underlying Index.

A positive inflation accrual, or change in the Consumer Price Index, applied to the principal of underlying securities also had a positive impact on performance for both the Fund and the Underlying Index.

Corporate Bonds & Notes

Short-Term Instruments

U.S. Treasury Obligations

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund seeks to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch 0-5 Year U.S. High Yield Constrained Index^SM (the “Underlying Index”), by investing under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities (“Component Securities”) of the Underlying Index. The Fund may invest the remainder of its assets in Fixed Income Instruments that are not Component Securities, but which PIMCO believes will help the Fund track its Underlying Index, as well as in cash and investment grade, liquid short-term instruments, forwards or derivatives, such as options, futures contracts or swap agreements, and shares of affiliated bond funds. The Fund invests in a representative sample of securities included in the Underlying Index that collectively has an investment profile similar to the Underlying Index. Due to the use of representative sampling, the Fund may not hold all of the securities that are included in the Underlying Index. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

Yields in the short-term segment of the U.S. high yield market increased, which negatively impacted price returns for these securities. Coupon income positively contributed to performance for both the Fund and the Underlying Index. The net result was positive overall performance for both the Fund and the Underlying Index.

Industrials

Banking & Finance

Utilities

Short-Term Instruments

U.S. Treasury Obligations

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund seeks to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch U.S. Corporate Index^SM (the “Underlying Index”), by investing under normal circumstances at least 80% of its total assets (exclusive of collateral held from securities lending) in the component securities (“Component Securities”) of the Underlying Index. The Fund may invest the remainder of its assets in Fixed Income Instruments that are not Component Securities, but which PIMCO believes will help the Fund track its Underlying Index, as well as in cash and investment grade, liquid short-term instruments, forwards or derivatives, such as options, futures contracts or swap agreements, and shares of affiliated bond funds. The Fund invests in a representative sample of securities included in the Underlying Index that collectively has an investment profile similar to the Underlying Index. Due to the use of representative sampling, the Fund may not hold all of the securities that are included in the Underlying Index. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

A decrease in bond yields positively impacted price returns for both the Fund and the Underlying Index.

Returns due to income positively contributed to performance for both the Fund and the Underlying Index, contributing to positive overall performance for the Fund.

Corporate Bonds & Notes

Short-Term Instruments

Sovereign Issues

U.S. Government Agencies

Asset-Backed Securities

Other

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO Diversified Income Active Exchange-Traded Fund seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

A short position in the Brazilian real detracted from the Fund’s relative performance, as the currency strengthened relative to the U.S. dollar.

A short position in the Japanese yen detracted from the Fund’s relative performance, as the currency strengthened relative to the U.S. dollar.

An overweight in financials reduced the Fund’s relative performance, as the asset class underperformed the benchmark.

An overweight in non-taxable municipals improved the Fund’s relative performance, as the asset class outperformed the benchmark.

An overweight in Russian debt improved the Fund’s relative performance, as the asset class outperformed the benchmark.

An overweight in Greek sovereign debt improved the Fund’s relative performance, as the asset class outperformed the benchmark.

Corporate Bonds & Notes

Asset-Backed Securities

Short-Term Instruments

Sovereign Issues

Non-Agency Mortgage-Backed Securities

Other

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO Enhanced Short Maturity Active Exchange-Traded Fund seeks maximum current income, consistent with preservation of capital and daily liquidity, by investing under normal circumstances at least 80% of its net assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities. The Fund primarily invests in U.S. dollar-denominated investment grade debt securities, rated Baa or higher by Moody’s Investors Service, Inc. (“Moody’s”), or equivalently rated by Standard & Poor’s Ratings Services (“S&P”) or Fitch, Inc. (“Fitch”), or, if unrated, determined by PIMCO to be of comparable quality.

Exposure to investment grade credit benefited relative performance, as these securities generally outperformed like-duration U.S. Treasuries.

Exposure to securities with longer maturities relative to the Citigroup 3-Month Treasury Bill Index, the Fund’s benchmark index, benefited performance, as longer-maturity U.S. yields generally declined.

Exposure to non-U.S. agency mortgage-backed securities added to returns, as these securities generally posted positive total returns.

Exposure to U.S. dollar-denominated emerging markets bonds benefited performance, as these securities generally posted positive total returns.

United States

Mexico

Turkey

Japan

United Kingdom

South Africa

Short-Term Instruments

Other

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO Global Advantage^® Inflation-Linked Bond Active Exchange-Traded Fund seeks total return which exceeds that of its benchmark indexes, consistent with prudent investment management, by investing under normal circumstances at least 80% of its assets in inflation-linked bonds that are economically tied to at least three developed and emerging market countries (one of which may be the United States), which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. Inflation-linked bonds are fixed income securities that are structured to provide protection against inflation.

An underweight to U.K. nominal duration (or sensitivity to changes in market interest rates) for the majority of the reporting period detracted from relative performance, as nominal yields fell.

An underweight to U.S. nominal duration expressed via interest rate swaps detracted from relative performance, as interest rate swap yields fell across most maturities.

An overweight to Brazilian nominal duration for a portion of the period detracted from relative returns, as yields rose during that period.

An underweight to German inflation-linked bonds detracted from relative returns, as real yields fell.

An overweight to U.S. Treasury Inflation-Protected Securities benefited relative performance, as real yields fell.

An underweight to long-term U.K. breakeven inflation spreads (or the yield differential between U.K. nominal Gilts and like-maturity U.K. Index-linked Gilts) benefited relative performance, as long-term breakeven inflation spreads fell.

Municipal Bonds & Notes

Ad Valorem Property Tax

Health, Hospital & Nursing Home Revenue

Water Revenue

College & University Revenue

Port, Airport & Marina Revenue

Highway Revenue Tolls

Electric Power & Light Revenue

Income Tax Revenue

Natural Gas Revenue

Miscellaneous Revenue

Tobacco Settlement Funded

Lease (Appropriation)

Industrial Revenue

Appropriations

Sales Tax Revenue

Miscellaneous Taxes

Transit Revenue

Sewer Revenue

Hotel Occupancy Tax

General Fund

Other

Short-Term Instruments

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund seeks attractive tax-exempt income, consistent with preservation of capital, by investing under normal circumstances at least 80% of its assets in a diversified portfolio of debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (“Municipal Bonds”). The Fund does not intend to invest in Municipal Bonds whose interest is subject to the federal alternative minimum tax. The Fund may only invest in U.S. dollar-denominated investment grade debt securities, rated Baa or higher by Moody’s Investors Service, Inc. (“Moody’s”), or equivalently rated by Standard & Poor’s Ratings Services (“S&P”) or Fitch, Inc. (“Fitch”), or, if unrated, determined by PIMCO to be of comparable quality. The Fund may invest 25% or more of its total assets in Municipal Bonds that finance similar projects, such as those relating to education, health care, housing, transportation, and utilities, and 25% or more of its total assets in industrial development bonds.

Duration positioning (or sensitivity to market interest rates) contributed to relative performance. The contribution to performance from an average overweight to duration in the 7-12 years part of the curve more than offset the negative performance impact of an underweight in the 1-7 years part of the curve, as the yield curve flattened.

An overweight to the revenue-backed sector contributed to relative performance, as the segment outperformed the general municipal bond market.

An overweight to the industrial revenue and education sectors contributed to relative performance, as these segments outperformed the general municipal bond market.

An underweight to the electric utility and lease-backed sectors detracted from relative performance, as these segments outperformed the general municipal bond market.

Corporate Bonds & Notes

Asset-Backed Securities

Non-Agency Mortgage-Backed Securities

U.S. Treasury Obligations

Short-Term Instruments

Other

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO Low Duration Active Exchange-Traded Fund seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

Exposure to investment grade corporates benefited relative performance, as these securities generally outperformed like-duration U.S. Treasuries.

Exposure to eurozone duration benefited performance, as yields generally declined.

Exposure to non-U.S. agency mortgage-backed securities added to returns, as these securities generally posted positive total returns.

Short exposure to the Australian dollar benefited performance, as the currency depreciated relative to the U.S. dollar.

Underweight exposure to the short end of the U.K. Gilt yield curve detracted from performance, as yields in the short end of the curve generally declined.

An underweight to the 1-3 year end of the U.S. Treasury curve relative to the BofA Merrill Lynch 1-3 Year U.S. Treasury Index, the Fund’s benchmark index, detracted from performance, as yields in this portion of the curve generally declined.

Municipal Bonds & Notes

Electric Power & Light Revenue

Health, Hospital & Nursing Home Revenue

Highway Revenue Tolls

Miscellaneous Revenue

Industrial Revenue

Ad Valorem Property Tax

Water Revenue

College & University Revenue

Port, Airport & Marina Revenue

Resource Recovery Revenue

Natural Gas Revenue

Income Tax Revenue

Tobacco Settlement Funded

Lease (Renewal)

Appropriations

Sales Tax Revenue

Lease (Non-Terminable)

Local or Guaranteed Housing

Miscellaneous Taxes

Short-Term Instruments

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO Short Term Municipal Bond Active Exchange-Traded Fund seeks attractive tax-exempt income, consistent with preservation of capital, by investing under normal circumstances at least 80% of its assets in a diversified portfolio of debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (“Municipal Bonds”). The Fund does not intend to invest in Municipal Bonds whose interest is subject to the federal alternative minimum tax. The Fund may only invest in U.S. dollar-denominated investment grade debt securities, rated Baa or higher by Moody’s Investors Service, Inc. (“Moody’s”), or equivalently rated by Standard & Poor’s Ratings Services (“S&P”) or Fitch, Inc. (“Fitch”), or, if unrated, determined by PIMCO to be of comparable quality. The Fund may invest 25% or more of its total assets in Municipal Bonds that finance similar projects, such as those relating to education, health care, housing, transportation, and utilities, and 25% or more of its total assets in industrial development bonds.

An overweight duration (or sensitivity to market interest rates) positioning contributed to relative performance, mostly driven by overweight exposure within 3-7 year maturities, as municipal bond yields rallied in this portion of the curve.

An overweight to the revenue-backed sector contributed to relative performance, as the segment outperformed the general municipal bond market.

An overweight to the industrial revenue, electric utility and health care sectors contributed to relative performance, as these segments outperformed the general municipal bond market.

An underweight to the pre-refunded municipal bond sector detracted from relative performance, as the segment outperformed the general municipal bond market.

U.S. Treasury Obligations

U.S. Government Agencies

Corporate Bonds & Notes

Sovereign Issues

Short-Term Instruments

Other

% of Investments, at value as of 06/30/2016. Financial derivative instruments, if any, are excluded.

The market price is determined using the midpoint between the highest bid and the lowest offer on the listing exchange, as of the time that the Fund’s NAV is calculated.

PIMCO Total Return Active Exchange-Traded Fund seeks maximum total return, consistent with preservation of capital and prudent investment management, by investing under normal circumstances at least 65% of its total assets in a diversified portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts, or swap agreements. “Fixed Income Instruments” include bonds, debt securities and other similar instruments issued by various U.S. and non-U.S. public- or private-sector entities.

Exposure to duration in the eurozone, particularly in Italy and Spain, contributed to relative performance as yields declined.

An initial underweight and a later overweight to the Brazilian real contributed to relative performance, as the Brazilian real first depreciated and then appreciated relative to the U.S. dollar.

An underweight to investment grade corporate bonds added to relative performance, as spreads widened.

An underweight to duration in the U.S. detracted from relative performance, as yields generally declined.

An underweight to the front end of the U.K. yield curve detracted from relative performance, as yields declined.

An overweight to asset-backed securities detracted from relative performance, as spreads widened.

PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund