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LOGO

 

PIMCO ETF TRUST

Annual Report

 

June 30, 2022

 

Index Exchange-Traded Funds

 

PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund | ZROZ | NYSE Arca

 

PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund | STPZ | NYSE Arca

 

PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund | LTPZ | NYSE Arca

 

PIMCO Broad U.S. TIPS Index Exchange-Traded Fund | TIPZ | NYSE Arca

 

PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund | HYS | NYSE Arca

 

PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund | CORP | NYSE Arca

 

Actively-Managed Exchange-Traded Funds

 

PIMCO Active Bond Exchange-Traded Fund | BOND | NYSE Arca

 

PIMCO Enhanced Low Duration Active Exchange-Traded Fund | LDUR | NYSE Arca

 

PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund | EMNT | NYSE Arca

 

PIMCO Enhanced Short Maturity Active Exchange-Traded Fund | MINT | NYSE Arca

 

PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund | MUNI | NYSE Arca

 

PIMCO Municipal Income Opportunities Active Exchange-Traded Fund | MINO | NYSE Arca

 

PIMCO Senior Loan Active Exchange-Traded Fund | LONZ | NYSE Arca

 

PIMCO Short Term Municipal Bond Active Exchange-Traded Fund | SMMU | NYSE Arca

 


Table of Contents

Table of Contents

 

            Page  
     

Chairman’s Letter

        2  

Important Information About the Funds

        4  

Expense Examples

        22  

Financial Highlights

        24  

Statements of Assets and Liabilities

        28  

Statements of Operations

        30  

Statements of Changes in Net Assets

        32  

Statement of Cash Flows

        36  

Notes to Financial Statements

        118  

Report of Independent Registered Public Accounting Firm

        145  

Glossary

        146  

Federal Income Tax Information

        147  

Distribution Information

        149  

Approval of Investment Management Agreement

        152  

Management of the Trust

        155  

Privacy Policy

        157  

Liquidity Risk Management Program

        158  
     
Fund    Fund
Summary
     Schedule of
Investments
 
     

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

     8        37  

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

     9        39  

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

     10        40  

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

     11        41  

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

     12        43  

PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund

     13        53  

PIMCO Active Bond Exchange-Traded Fund

     14        64  

PIMCO Enhanced Low Duration Active Exchange-Traded Fund

     15        77  

PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund

     16        86  

PIMCO Enhanced Short Maturity Active Exchange-Traded Fund

     17        91  

PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund

     18        98  

PIMCO Municipal Income Opportunities Active Exchange-Traded Fund

     19        105  

PIMCO Senior Loan Active Exchange-Traded Fund

     20        109  

PIMCO Short Term Municipal Bond Active Exchange-Traded Fund

     21        112  

 

 

 

This material is authorized for use only when preceded or accompanied by the current PIMCO ETF Trust prospectus.


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Chairman’s Letter              

 

Dear Shareholder,

 

We hope that you and your family are remaining safe and healthy during these challenging times. We continue to work tirelessly to navigate markets and manage the assets that you have entrusted to us. Following this letter is the PIMCO ETF Annual Report, which covers the 12-month reporting period ended June 30, 2022. On the subsequent pages, you will find specific details regarding investment results and a discussion of the factors that most affected performance during the reporting period.

 

For the 12-month reporting period ended June 30, 2022

 

The global economy continued to be affected by the COVID-19 pandemic (“COVID-19”) and its variants. Looking back, third quarter 2021 U.S. annualized gross domestic product (“GDP”) grew 2.3%. Economic activity accelerated during the fourth quarter, as GDP growth was 6.9%. However, the U.S. economy then experienced a setback, as first quarter 2022 GDP growth was -1.6%. Finally, the Commerce Department’s initial estimate for second quarter 2022 GDP growth — released after the reporting period ended — was -0.9%.

 

In the U.S., the Federal Reserve Board (the “Fed”) took several steps to tighten monetary policy to combat elevated inflation. The Fed reduced the monthly pace of its net asset purchases of Treasury securities and agency mortgage-backed securities in November 2021 and again in December. The Fed ended its monthly asset purchases in mid-March 2022. The Fed then raised the federal funds rate 0.25% to a range between 0.25% and 0.50% in March 2022, its first rate hike since 2018. The central bank then raised rates 0.50% in its May 2022 meeting and 0.75% in its June meeting. Finally, on July 27, 2022 — after the reporting period ended — the Fed raised rates 0.75%, to a range between 2.25% and 2.50%.

 

Economies outside the U.S. also continued to be impacted by the pandemic. The war in Ukraine and its repercussions also led to increased uncertainties around the world. In its April 2022 World Economic Outlook Update, the International Monetary Fund (“IMF”) said it expects U.S. gross domestic product (“GDP”) growth to be 3.7% in 2022, compared to 5.7% in 2021. Elsewhere, the IMF expects 2022 GDP to grow 2.8% in the eurozone (from 5.3% in 2021), 3.7% in the U.K. (from 7.4% in 2021) and 2.4% in Japan (from 1.6% in 2021).

 

Several other central banks began tightening monetary policy during the period. In December 2021, the Bank of England (the “BoE”) surprised the market and raised rates for the first time since COVID-19 began. The BoE again raised rates at its meetings in February, March, May and June 2022. The European Central Bank (the “ECB”) indicated that it intended to raise rates at its September 2022 meeting. Elsewhere, the Bank of Japan (the “BoJ”) maintained its loose monetary policy and appears likely to remain accommodative in the near future given the headwinds facing its economy.

 

During the reporting period, short- and long-term U.S. Treasury yields moved sharply higher. The yield on the benchmark 10-year U.S. Treasury note was 2.98% on June 30, 2022, versus 1.45% on June 30, 2021. The Bloomberg Global Treasury Index (USD Hedged), which tracks fixed-rate, local currency government debt of investment grade countries, including developed and emerging markets, returned -7.91%. Meanwhile, the Bloomberg Global Aggregate Credit Index (USD Hedged), a widely used index of global investment grade credit bonds, returned -12.75%. Riskier fixed income asset classes, including high yield corporate bonds and emerging market debt, were also weak. The ICE BofAML Developed Markets High Yield Constrained Index (USD Hedged), a widely used index of below-investment-grade bonds, returned -12.85%, whereas emerging market external debt, as represented by the JPMorgan Emerging Markets Bond Index (EMBI) Global (USD Hedged), returned -19.25%. Emerging market local bonds, as represented by the JPMorgan Government Bond Index-Emerging Markets Global Diversified Index (Unhedged), returned -19.28%.

 

Amid periods of volatility, global equities generally posted weak results during the reporting period as economic and geopolitical concerns weighed on investor sentiment. U.S. equities, as represented by the S&P 500 Index, returned -10.62%. Global equities, as represented by the MSCI World Index, returned -14.34%, while emerging market

 

       
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equities, as measured by the MSCI Emerging Markets Index, returned -25.28%. Meanwhile, Japanese equities, as represented by the Nikkei 225 Index (in JPY), returned -8.33% and European equities, as represented by the MSCI Europe Index (in EUR), returned -6.54%.

 

Commodity prices were volatile and generated mixed returns. Brent crude oil, which was approximately $75 a barrel at the start of the reporting period, rose to roughly $112 a barrel at the end of June 2022. We believe the oil-price increase was driven by supply shortages and stronger demand due to economic re-openings as COVID-19 restrictions eased. Repercussions from the war in Ukraine also contributed to higher oil prices. In terms of other commodities prices, copper declined, whereas gold rose during the period.

 

Finally, there were also periods of volatility in the foreign exchange markets. We believe this was due to several factors, including economic growth expectations and changing central bank monetary policies, as well as rising inflation, COVID-19 variants and geopolitical events. The U.S. dollar strengthened against several major currencies. For example, during the reporting period, the U.S. dollar returned 11.59%, 11.95% and 18.13% versus the euro, the British pound and the Japanese yen, respectively.

 

Thank you for the assets you have placed with us. We deeply value your trust, and we will continue to work diligently to meet your broad investment needs. For any questions regarding the PIMCO ETF Trust, please contact your financial adviser, or call one of our shareholder associates at (888) 400-4ETF. We also invite you to visit our website at www.pimco.com to learn more about PIMCO ETFs.

 

LOGO   

Sincerely,

 

LOGO

 

Peter G. Strelow

Chairman of the Board
PIMCO ETF Trust

 

 

Past performance is no guarantee of future results. Unless otherwise noted, index returns reflect the reinvestment of income distributions and capital gains, if any, but do not reflect fees, brokerage commissions or other expenses of investing. It is not possible to invest directly in an unmanaged index.

 

         ANNUAL REPORT     |     JUNE 30, 2022     3
    


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Important Information About the Funds              

 

PIMCO ETF Trust (the “Trust”) is an open-end management investment company that includes the 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, and PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund, which are exchange-traded funds (“ETFs”) that seek to provide total return that closely corresponds, before fees and expenses, to the total return of a specified index (collectively, the “Index Funds”). Each Index Fund employs a representative sampling strategy in seeking to achieve its investment objective. In using this strategy, PIMCO seeks to invest in a combination of instruments such that the portfolio effectively provides exposure to the underlying index. An Index Fund may not track its underlying index with the same degree of accuracy as a fund that replicates the composition and weighting of the underlying index. The PIMCO Active Bond Exchange-Traded Fund, PIMCO Enhanced Low Duration Active Exchange-Traded Fund, PIMCO Enhanced Short Maturity Active Exchange-Traded Fund, PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund, PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund, PIMCO Municipal Income Opportunities Active Exchange-Traded Fund, PIMCO Senior Loan Active Exchange-Traded Fund, and PIMCO Short Term Municipal Bond Active Exchange-Traded Fund, unlike the Index Funds, are actively managed ETFs that do not seek to track the performance of a specified index (collectively, the “Active Funds” and together with the Index Funds, a “Fund” or the “Funds”). Shares of the Funds will be listed and traded at market prices on NYSE Arca, Inc. (“NYSE Arca”) and other secondary markets. The market price for each Fund’s shares may be different from the Fund’s net asset value (“NAV”). Each Fund issues and redeems shares at its NAV only in blocks of a specified number of shares (“Creation Units”). Only certain large institutional investors may purchase or redeem Creation Units directly with the Funds at NAV (“Authorized Participants”). These transactions are in exchange for certain securities similar to a Fund’s portfolio and/or cash. Except when aggregated in Creation Units, shares of a Fund are not redeemable securities. Shareholders who are not Authorized Participants may not redeem shares from the Funds at NAV.

 

We believe that bond funds have an important role to play in a well-diversified investment portfolio. It is important to note, however, that in an environment where interest rates may trend upward, rising rates would negatively impact the performance of most bond funds, and fixed income securities and other instruments held by the Funds are likely to decrease in value. A wide variety of factors can cause interest rates to rise (e.g., central bank monetary policies, inflation rates, general economic conditions, etc.). In addition, changes in interest rates can be sudden and unpredictable, and there is no guarantee that management will anticipate such movement accurately. The Funds may lose money as a result of movements in interest rates.

As of the date of this report, interest rates in the United States and many parts of the world, including certain European countries, are ascending from historically low levels. Thus, the Funds currently face a heightened level of risk associated with rising interest rates and/or bond yields. This could be driven by a variety of factors, including but not limited to central bank monetary policies, changing inflation or real growth rates, general economic conditions, increasing bond issuances or reduced market demand for low yielding investments. Further, while bond markets have steadily grown over the past three decades, dealer inventories of corporate bonds are near historic lows in relation to market size. As a result, there has been a significant reduction in the ability of dealers to “make markets”.

 

Bond funds and individual bonds with a longer duration (a measure used to determine the sensitivity of a security’s price to changes in interest rates) tend to be more sensitive to changes in interest rates, usually making them more volatile than securities or funds with shorter durations. All of the factors mentioned above, individually or collectively, could lead to increased volatility and/or lower liquidity in the fixed income markets or negatively impact a Fund’s performance or cause a Fund to incur losses. As a result, there could be increased sales of shares which could further reduce the market price for a Fund’s shares.

 

The Funds may be subject to various risks as described in each Fund’s prospectus and in the Principal and Other Risks in the Notes to Financial Statements.

 

Classifications of the Funds’ portfolio holdings in this report are made according to financial reporting standards. The classification of a particular portfolio holding as shown in the Allocation Breakdown and Schedule of Investments sections of this report may differ from the classification used for the Funds’ compliance calculations, including those used in the Funds’ prospectus, investment objectives, regulatory, and other investment limitations and policies, which may be based on different asset class, sector or geographical classifications. Each Fund is separately monitored for compliance with respect to prospectus and regulatory requirements.

 

The geographical classification of foreign (non-U.S.) securities in this report, if any, are classified by the country of incorporation of a holding. In certain instances, a security’s country of incorporation may be different from its country of economic exposure.

 

Beginning in January 2020, global financial markets have experienced and may continue to experience significant volatility resulting from the spread of a novel coronavirus known as COVID-19. The outbreak of COVID-19 has resulted in travel and border restrictions, quarantines, supply chain disruptions, lower consumer demand and general market uncertainty. The effects of COVID-19 have and may continue to

 

       
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adversely affect the global economy, the economies of certain nations and individual issuers, all of which may negatively impact the Funds’ performance. In addition, COVID-19 and governmental responses to COVID-19 may negatively impact the capabilities of the Funds’ service providers and disrupt the Funds’ operations.

 

The United States’ enforcement of restrictions on U.S. investments in certain issuers and tariffs on goods from other countries, each with a focus on China, has contributed to international trade tensions and may impact portfolio securities.

 

The United Kingdom’s withdrawal from the European Union may impact Fund returns. The withdrawal may cause substantial volatility in foreign exchange markets, lead to weakness in the exchange rate of the British pound, result in a sustained period of market uncertainty, and destabilize some or all of the other European Union member countries and/or the Eurozone.

 

A Fund may invest in certain instruments that rely in some fashion upon the London Interbank Offered Rate (“LIBOR”). LIBOR is an average interest rate, determined by the ICE Benchmark Administration, that banks charge one another for the use of short-term money. The United Kingdom’s Financial Conduct Authority, which regulates LIBOR, has announced plans to ultimately phase out the use of LIBOR. There remains uncertainty regarding future utilization of LIBOR and the nature of any replacement rate (e.g., the Secured Overnight Financing Rate, which is intended to replace U.S. dollar LIBOR and measures the cost of overnight borrowings through repurchase agreement transactions collateralized with U.S. Treasury securities). Any potential effects of the transition away from LIBOR on a Fund or on certain instruments in which a Fund invests can be difficult to ascertain, and they may vary depending on a variety of factors. The transition may also result in a reduction in the value of certain instruments held by a Fund or a reduction in the effectiveness of related Fund transactions such as hedges. Any such effects of the transition away from LIBOR, as well as other unforeseen effects, could result in losses to a Fund.

 

Engaging in a responsible investment strategy, which may select or exclude securities of certain issuers for reasons other than performance, carries the risk that a Fund may underperform funds that do not utilize

a responsible investment strategy. The application of this strategy may affect a Fund’s exposure to certain sectors or types of investments, which could negatively impact the Fund’s performance. Responsible investing is qualitative and subjective by nature, and there is no guarantee that the criteria utilized or any judgment exercised in pursuing a responsible investment strategy will reflect the beliefs or values of any particular investor. In evaluating a company, the information and data obtained through voluntary or third-party reporting may be incomplete, inaccurate or unavailable, which could cause an incorrect assessment of a company’s business practices with respect to the environment, social responsibility and corporate governance (“ESG practices”). Socially responsible norms differ by region, and a company’s ESG practices or the assessment of a company’s ESG practices may change over time.

 

On each individual Fund Summary page in this Shareholder Report, the Average Annual Total Return table and Cumulative Returns chart measure performance assuming that any dividend and capital gain distributions were reinvested. Returns do not reflect the deduction of taxes that a shareholder would pay on: (i) Fund distributions; or (ii) the sale of Fund shares. Each Fund’s performance is measured against the performance of at least one broad-based securities market index (“benchmark index”). A Fund’s past performance, before and after taxes, is not necessarily an indication of how the Fund will perform in the future. There is no assurance that any Fund, including any Fund that has experienced high or unusual performance for one or more periods, will experience similar levels of performance in the future. High performance is defined as a significant increase in either 1) a Fund’s total return in excess of that of the Fund’s benchmark between reporting periods or 2) a Fund’s total return in excess of the Fund’s historical returns between reporting periods. Unusual performance is defined as a significant change in a Fund’s performance as compared to one or more previous reporting periods. Historical performance for a Fund may have been positively impacted by fee waivers or expense limitations in place during some or all of the periods shown, if applicable. Future performance (including total return or yield) and distributions may be negatively impacted by the expiration or reduction of any such fee waivers or expense limitations.

 

The following table discloses the inception dates of each Fund along with each Fund’s diversification status as of period end:

 

Fund Name         Fund
Inception
    Diversification
Status
 

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

      10/30/09       Diversified  

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

      08/20/09       Diversified  

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

      09/03/09       Diversified  

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

      09/03/09       Diversified  

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

      06/16/11       Diversified  

PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund

      09/20/10       Diversified  

 

         ANNUAL REPORT     |     JUNE 30, 2022     5
    


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Important Information About the Funds   (Cont.)  

 

Fund Name (Cont.)         Fund
Inception
    Diversification
Status
 

PIMCO Active Bond Exchange-Traded Fund

      02/29/12       Diversified  

PIMCO Enhanced Low Duration Active Exchange-Traded Fund

      01/22/14       Diversified  

PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund

      12/10/19       Diversified  

PIMCO Enhanced Short Maturity Active Exchange-Traded Fund

      11/16/09       Diversified  

PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund

      11/30/09       Diversified  

PIMCO Municipal Income Opportunities Active Exchange-Traded Fund

      09/08/21       Diversified  

PIMCO Senior Loan Active Exchange-Traded Fund

      06/08/22       Diversified  

PIMCO Short Term Municipal Bond Active Exchange-Traded Fund

      02/01/10       Diversified  

 

An investment in a Fund is not a bank deposit and is not guaranteed or insured by the Federal Deposit Insurance Corporation or any other government agency. It is possible to lose money on investments in the Funds.

 

The Trustees are responsible generally for overseeing the management of the Trust. The Trustees authorize the Trust to enter into service agreements with the Adviser, the Distributor, the Administrator and other service providers in order to provide, and in some cases authorize service providers to procure through other parties, necessary or desirable services on behalf of the Trust and the Funds. Shareholders are not parties to or third-party beneficiaries of such service agreements. Neither a Fund’s prospectus nor a Fund’s summary prospectus, the Trust’s Statement of Additional Information (“SAI”), any contracts filed as exhibits to the Trust’s registration statement, nor any other communications, disclosure documents or regulatory filings (including this report) from or on behalf of the Trust or a Fund creates a contract between or among any shareholder of a Fund, on the one hand, and the Trust, a Fund, a service provider to the Trust or a Fund, and/or the Trustees or officers of the Trust, on the other hand. The Trustees (or the Trust and its officers, service providers or other delegates acting under authority of the Trustees) may amend the most recent prospectus or use a new prospectus, summary prospectus or SAI with respect to a Fund or the Trust, and/or amend, file and/or issue any other communications, disclosure documents or regulatory filings, and may amend or enter into any contracts to which the Trust or a Fund is a party, and interpret the investment objective(s), policies, restrictions and contractual provisions applicable to any Fund, without shareholder input or approval, except in circumstances in which shareholder approval is specifically required by law (such as changes to fundamental investment policies) or where a shareholder approval requirement is specifically disclosed in the Trust’s then-current prospectus or SAI.

 

On each business day, before commencement of trading on NYSE Arca, each Fund will disclose on www.pimcoetfs.com the identities and quantities of the Fund’s portfolio holdings. The frequency at which the daily market prices were at a discount or premium to each Fund’s NAV is disclosed on www.pimcoetfs.com. Please see “Disclosure of Portfolio

Holdings” in the SAI for information about the availability of the complete schedule of each Fund’s holdings. Fund fact sheets provide additional information regarding a Fund and may be requested by calling (888) 400-4ETF and are available on the Fund’s website at www.pimcoetfs.com.

 

PIMCO has adopted written proxy voting policies and procedures (“Proxy Policy”) as required by Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended. The Proxy Policy has been adopted by the Trust as the policies and procedures that PIMCO will use when voting proxies on behalf of the Funds. A description of the policies and procedures that PIMCO uses to vote proxies relating to portfolio securities of each Fund, and information about how each Fund voted proxies relating to portfolio securities held during the most recent twelve-month period ended June 30, are available without charge, upon request, by calling the Trust at (888) 400-4ETF, on the Funds’ website at www.pimcoetfs.com, and on the Securities and Exchange Commission’s (“SEC”) website at www.sec.gov.

 

The Funds file portfolio holdings information with the SEC on Form N-PORT within 60 days of the end of each fiscal quarter. The Funds’ complete schedules of securities holdings as of the end of each fiscal quarter will be made available to the public on the SEC’s website at www.sec.gov and on PIMCO’s website at www.pimcoetfs.com, and will be made available, upon request, by calling PIMCO at (888) 400-4ETF.

 

SEC rules allow the Funds to fulfill their obligation to deliver shareholder reports to investors by providing access to such reports online free of charge and by mailing a notice that the report is electronically available. Investors may elect to receive all future reports in paper free of charge by contacting their financial intermediary. Any election to receive reports in paper will apply to all funds held in the investor’s account at the financial intermediary.

 

In August 2020, the SEC proposed changes to the mutual fund and ETF shareholder report and registration statement disclosure requirements and the registered fund advertising rules, which, if adopted, will change the disclosures provided to shareholders.

 

       
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In October 2020, the SEC adopted a rule related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies that rescinds and withdraws the guidance of the SEC and its staff regarding asset segregation and cover transactions that was applicable to the Funds as of the date of this report. Subject to certain exceptions, the rule requires funds that trade derivatives and other transactions that create future payment or delivery obligations to comply with a value-at-risk leverage limit and certain derivatives risk management program and reporting requirements. These requirements may limit the ability of the Funds to use derivatives and reverse repurchase agreements and similar financing transactions as part of their investment strategies and may increase the cost of the Funds’ investments and cost of doing business, which could adversely affect investors. The rule went into effect on February 19, 2021. The compliance date for the new rule and related reporting requirements is August 19, 2022.

 

In October 2020, the SEC adopted a rule regarding the ability of a fund to invest in other funds. The rule allows a fund to acquire shares of another fund in excess of certain limitations currently imposed by the Investment Company Act of 1940 (the “Act”) without obtaining individual exemptive relief from the SEC, subject to certain conditions. The rule also includes the rescission of certain exemptive relief from the SEC and guidance from the SEC staff for funds to invest in other funds. The effective date for the rule was January 19, 2021, and the compliance date for the rule was January 19, 2022.

 

In December 2020, the SEC adopted a rule addressing fair valuation of fund investments. The new rule sets forth requirements for good faith determinations of fair value as well as for the performance of fair value determinations, including related oversight and reporting obligations. The new rule also defines “readily available market quotations” for purposes of the definition of “value” under the Act, and the SEC noted that this definition will apply in all contexts under the Act. The effective date for the rule was March 8, 2021. The compliance date for the new rule and the associated recordkeeping requirements is September 8, 2022.

 

In May 2022, the SEC proposed amendments to a current rule governing fund naming conventions. In general, the current rule requires funds with certain types of names to adopt a policy to invest at least 80% of their assets in the type of investment suggested by the name. The proposed amendments would expand the scope of the current rule in a number of ways that would result in an expansion of the types of fund names that would require the fund to adopt an 80% investment policy under the rule. Additionally, the proposed amendments would modify the circumstances under which a fund may deviate from its 80% investment policy and address the use and

valuation of derivatives instruments for purposes of the rule. The proposal’s impact on the Funds will not be known unless and until any final rulemaking is adopted.

 

In May 2022, the SEC proposed a framework that would require certain registered funds (such as the Funds) to disclose their environmental, social, and governance (“ESG”) investing practices. Among other things, the proposed requirements would mandate that funds meeting three pre-defined classifications (i.e., integrated, ESG focused and/or impact funds) provide prospectus and shareholder report disclosure related to the ESG factors, criteria and processes used in managing the fund. The proposal’s impact on the Funds will not be known unless and until any final rulemaking is adopted.

 

         ANNUAL REPORT     |     JUNE 30, 2022     7
    


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

 

 
 
  Ticker Symbol - ZROZ

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

U.S. Treasury Obligations

    100.0%  

Short-Term Instruments

    0.0%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     5 Year     10 Years     Fund Inception
(10/30/2009)
 
LOGO   PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund (Based on Net Asset Value)     (24.29)%       0.56%       1.87%       5.69%  
LOGO   PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund (At Market Price)(1)     (24.12)%       0.59%       1.92%       5.70%  
LOGO   The ICE BofAML Long U.S. Treasury Principal STRIPS Index±     (24.22)%       0.82%       2.15%       5.86%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

± The ICE BofAML Long US Treasury Principal STRIPS Index is an unmanaged index comprised of long maturity Separate Trading of Registered Interest and Principal of Securities (STRIPS) representing the final principal payment of U.S. Treasury bonds.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.15%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

Investment Objective and Strategy Overview

 

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 ICE BofA Long US Treasury Principal STRIPS Index (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. “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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Rising yields in the 25+ year segment of the U.S. Treasury STRIPS (zero-coupon) curve detracted from absolute performance, as the return of both the Fund and the underlying index were negatively impacted.

 

»   There were no material contributors for this Fund.

 

       
8   PIMCO ETF TRUST            


Table of Contents

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

 

 
 
  Ticker Symbol - STPZ

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

U.S. Treasury Obligations

    100.0%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     5 Year     10 Years     Fund Inception
(08/20/2009)
 
LOGO   PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund (Based on Net Asset Value)     0.18%       2.77%       1.43%       2.08%  
LOGO   PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund (At Market Price)(1)     0.12%       2.76%       1.43%       2.08%  
LOGO   The ICE BofAML 1-5 Year U.S. Inflation-Linked Treasury Index±     0.34%       2.98%       1.65%       2.30%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

± The ICE BofAML 1-5 Year US Inflation-Linked Treasury Index is an unmanaged index comprised of TIPS (Treasury Inflation Protected Securities) with a maturity of at least 1 year and less than 5 years.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.20%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

Investment Objective and Strategy Overview

 

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 ICE BofA 1-5 Year US Inflation-Linked Treasury Index (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. “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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Exposure to U.S. real yields detracted from absolute performance for both the Fund and the 1-5 Year U.S. Treasury Inflation-Protected Securities Index, as yields moved higher.

 

»   There were no other material contributors or detractors for the Fund.

 

         ANNUAL REPORT     |     JUNE 30, 2022     9
    


Table of Contents

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

 

 
 
  Ticker Symbol - LTPZ

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

U.S. Treasury Obligations

    99.7%  

Short-Term Instruments

    0.3%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     5 Year     10 Years     Fund Inception
(09/03/2009)
 
LOGO   PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (Based on Net Asset Value)     (20.04)%       2.92%       1.62%       4.57%  
LOGO   PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund (At Market Price)(1)     (19.97)%       2.91%       1.62%       4.57%  
LOGO   The ICE BofAML 15+ Year U.S. Inflation-Linked Treasury Index±     (19.70)%       3.17%       1.86%       4.79%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

± The ICE BofAML 15+ Year US Inflation-Linked Treasury Index is an unmanaged index comprised of TIPS (Treasury Inflation Protected Securities) with a maturity of at least 15 years.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.20%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

Investment Objective and Strategy Overview

 

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 ICE BofA 15+ Year US Inflation-Linked Treasury Index (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. “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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Exposure to U.S. real yields detracted from absolute performance for both the Fund and the 15+ Year U.S. Treasury Inflation-Protected Securities Index, as yields moved higher.

 

»   There were no other material contributors or detractors for the Fund.

 

       
10   PIMCO ETF TRUST            


Table of Contents

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

 

 
 
  Ticker Symbol - TIPZ

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

U.S. Treasury Obligations

    99.9%  

Short-Term Instruments

    0.1%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     5 Year     10 Years     Fund Inception
(09/03/2009)
 
LOGO   PIMCO Broad U.S. TIPS Index Exchange-Traded Fund
(Based on Net Asset Value)
    (6.25)%       2.95%       1.51%       3.27%  
LOGO   PIMCO Broad U.S. TIPS Index Exchange-Traded Fund
(At Market Price)(1)
    (6.30)%       2.93%       1.51%       3.27%  
LOGO   The ICE BofAML U.S. Inflation-Linked Treasury Index±     (5.69)%       3.24%       1.76%       3.50%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

± The ICE BofAML US Inflation-Linked Treasury Index is an unmanaged index comprised of TIPS (Treasury Inflation Protected Securities).

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.20%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

Investment Objective and Strategy Overview

 

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 ICE BofA US Inflation-Linked Treasury Index (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. PIMCO uses an indexing approach in managing the Fund’s investments. “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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Exposure to U.S. real yields detracted from absolute performance for both the Fund and the U.S. Treasury Inflation-Protected Securities Index, as yields moved higher.

 

»   There were no other material contributors or detractors for the Fund.

 

         ANNUAL REPORT     |     JUNE 30, 2022     11
    


Table of Contents

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

 

 
 
  Ticker Symbol - HYS

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

Corporate Bonds & Notes

    85.7%  

Short-Term Instruments

    13.4%  

Other

    0.9%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     5 Year     10 Years     Fund Inception
(06/16/2011)
 
LOGO   PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund (Based on Net Asset Value)     (8.25)%       1.78%       3.65%       3.81%  
LOGO   PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund (At Market Price)(1)     (8.22)%       1.83%       3.61%       3.82%  
LOGO   ICE BofAML 0-5 Year US High Yield Constrained Index±     (7.82)%       2.35%       4.24%       4.38%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

± The ICE BofAML 0-5 Year US High Yield Constrained Index tracks the performance of short-term U.S. dollar denominated below investment grade corporate debt issued in the U.S. domestic market with less than five years remaining term to final maturity, a fixed coupon schedule and a minimum amount outstanding of $250 million, issued publicly. Allocations to an individual issuer will not exceed 2%.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.55%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

Investment Objective and Strategy Overview

 

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 ICE BofA 0-5 Year US High Yield Constrained Index (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. “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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Security selection within the healthcare sector contributed to performance, as overweight exposure to select issuers outperformed the Underlying Index’s broader exposure to the sector.

 

»   Security selection within the gaming and lodging sector contributed to performance, as underweight exposure to select issuers underperformed the Underlying Index’s broader exposure to the sector.

 

»   Security selection within the finance and insurance sector contributed to performance, as overweight exposure to select issuers outperformed the Underlying Index’s broader exposure to the sector.

 

»   Underweight exposure to, and security selection within, the energy sector detracted from performance, as the sector outperformed.

 

»   Security selection within the telecommunications sector detracted from performance, as overweight exposure to select issuers underperformed the Underlying Index’s broader exposure to the sector.

 

       
12   PIMCO ETF TRUST            


Table of Contents

PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund

 

 
 
  Ticker Symbol - CORP

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

Industrials

    42.7%  

Banking & Finance

    31.1%  

Utilities

    12.7%  

Short-Term Instruments

    11.1%  

U.S. Treasury Obligations

    2.3%  

Other

    0.1%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     5 Year     10 Years     Fund Inception
(09/20/2010)
 
LOGO   PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund (Based on Net Asset Value)     (13.77)%       1.35%       2.66%       3.23%  
LOGO   PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund (At Market Price)(1)     (13.64)%       1.32%       2.66%       3.24%  
LOGO   ICE BofAML US Corporate Index±     (14.00)%       1.37%       2.70%       3.29%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

± ICE BofAML US Corporate Index is an unmanaged index comprised of U.S. dollar denominated investment grade, fixed rate corporate debt securities publicly issued in the U.S. domestic market with at least one year remaining term to final maturity and at least $250 million outstanding.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.20%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

 

Investment Objective and Strategy Overview

 

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 ICE BofA US Corporate Index (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. “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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   The Fund had negative performance over the period, as the underlying index had negative performance over the period.

 

»   There were no material contributors for this Fund.

 

         ANNUAL REPORT     |     JUNE 30, 2022     13
    


Table of Contents

PIMCO Active Bond Exchange-Traded Fund

 

 
 
  Ticker Symbol - BOND

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

Corporate Bonds & Notes

    30.6%  

U.S. Government Agencies

    25.6%  

Asset-Backed Securities

    15.9%  

U.S. Treasury Obligations

    12.8%  

Non-Agency Mortgage-Backed Securities

    6.8%  

Preferred Securities

    3.6%  

Short-Term Instruments

    2.2%  

Municipal Bonds & Notes

    1.7%  

Other

    0.8%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

 

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     5 Year     10 Years     Fund Inception
(02/29/2012)
 
LOGO  

PIMCO Active Bond Exchange-Traded Fund

(Based on Net Asset Value)

    (11.96)%       0.85%       2.16%       2.69%  
LOGO  

PIMCO Active Bond Exchange-Traded Fund

(At Market Price)(1)

    (11.83)%       0.86%       2.17%       2.70%  
LOGO   Bloomberg U.S. Aggregate Index±     (10.29)%       0.88%       1.54%       1.64%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

± Bloomberg U.S. Aggregate Index represents securities that are SEC-registered, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.55%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

 

Investment Objective and Strategy Overview

 

PIMCO Active Bond Exchange-Traded Fund seeks current income and long-term capital appreciation, consistent with prudent investment management, by investing under normal circumstances at least 80% of its 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Short exposure to duration in the U.K. contributed to relative performance, as interest rates rose.

 

»   Tactical U.S. duration positioning, primarily underweight exposure for most of the reporting period, contributed to relative performance, as interest rates rose.

 

»   There were no other material contributors for this Fund.

 

»   Selection within investment grade corporate credit, particularly a preference for financials detracted from relative performance, as spread widened.

 

»   Long exposure to duration in Canada detracted from relative performance, as interest rates rose.

 

»   Positions in high yield credit detracted from relative performance, as spreads widened.

 

»   Positions in non-agency mortgage-backed securities and other securitized assets detracted from relative performance, as spread widened.

 

       
14   PIMCO ETF TRUST            


Table of Contents

PIMCO Enhanced Low Duration Active Exchange-Traded Fund

 

 
 
  Ticker Symbol - LDUR

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

Corporate Bonds & Notes

    51.0%  

U.S. Treasury Obligations

    19.8%  

Asset-Backed Securities

    10.8%  

Non-Agency Mortgage-Backed Securities

    9.1%  

Short-Term Instruments

    6.4%  

U.S. Government Agencies

    2.8%  

Other

    0.1%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

 

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     5 Year     Fund Inception
(01/22/2014)
 
LOGO   PIMCO Enhanced Low Duration Active Exchange-Traded Fund (Based on Net Asset Value)     (4.41)%       1.28%       1.73%  
LOGO   PIMCO Enhanced Low Duration Active Exchange-Traded Fund (At Market Price)(1)     (4.46)%       1.23%       1.72%  
LOGO   ICE BofAML 1-3 Year U.S. Treasury Index±     (3.30)%       0.94%       0.85%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

± The ICE BofAML 1-3 Year U.S. Treasury Index is an unmanaged index comprised of U.S. Treasury securities, other than inflation-protection securities and STRIPS, with at least $1 billion in outstanding face value and a remaining term to final maturity of at least one year and less than three years.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.49%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

 

Investment Objective and Strategy Overview

 

PIMCO Enhanced 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 80% of its net 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Cash management strategies contributed to relative performance, as the U.S. dollar overnight rate provided positive total return.

 

»   There were no other material contributors for this Fund.

 

»   Overweight exposure to U.S. duration at the front-end of the U.S. yield curve detracted from relative performance, as front-end U.S. interest rates rose.

 

»   A long bias to the Japanese yen versus the U.S. dollar detracted from relative performance, as the Japanese yen depreciated.

 

»   Select holdings of securitized credit detracted from relative performance, as holdings of commercial mortgage-backed securities provided negative total return.

 

         ANNUAL REPORT     |     JUNE 30, 2022     15
    


Table of Contents

PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund

 

 
 
  Ticker Symbol - EMNT

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

Corporate Bonds & Notes

    53.7%  

Asset-Backed Securities

    16.2%  

Short-Term Instruments

    15.7%  

U.S. Government Agencies

    8.1%  

Non-Agency Mortgage-Backed Securities

    5.1%  

Other

    1.2%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     Fund Inception
(12/10/2019)
 
LOGO  

PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund

(Based on Net Asset Value)

    (1.43)%       0.42%  
LOGO  

PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund

(At Market Price)(1)(2)

    (1.39)%       0.43%  
LOGO   FTSE 3-Month Treasury Bill Index±     0.19%       0.35%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

(2) 

The Fund was seeded on December 10, 2019, but was not listed for trading until December 12, 2019. Accordingly, there is no Market Price information for December 10, 2019 through December 11, 2019.

 

± FTSE 3-Month Treasury Bill Index is an unmanaged index representing monthly return equivalents of yield averages of the last 3 month Treasury Bill issues.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.36%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

Investment Objective and Strategy Overview

 

PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund seeks maximum current income, consistent with preservation of capital and daily liquidity, while incorporating PIMCO’s ESG investment strategy. The Fund seeks to achieve its investment objective 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 will not invest in the securities of any non-governmental issuer determined by PIMCO to be engaged principally in the manufacture of alcoholic beverages, tobacco products or military equipment, the operation of gambling casinos, the production or trade of pornographic materials, or in the oil industry, including extraction, production, and refining or the production, distribution of coal and coal fired generation. To the extent possible on the basis of information available to PIMCO, an issuer will be deemed to be principally engaged in an activity if it derives more than 10% of its gross revenues from such activities. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Cash management strategies contributed to relative performance, as the U.S. dollar overnight rate provided positive total return.

 

»   There were no other material contributors for this Fund.

 

»   Overweight exposure to U.S. duration detracted from relative performance, as U.S. interest rates rose.

 

»   Overweight exposure to non-agency residential mortgage-backed securities (“MBS”) detracted from relative performance, as spreads widened.

 

»   Holdings of agency MBS detracted from relative performance, as the asset class provided negative total return.

 

       
16   PIMCO ETF TRUST            


Table of Contents

PIMCO Enhanced Short Maturity Active Exchange-Traded Fund

 

 
 
  Ticker Symbol - MINT

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

Corporate Bonds & Notes

    57.1%  

Asset-Backed Securities

    14.8%  

Non-Agency Mortgage-Backed Securities

    9.5%  

U.S. Treasury Obligations

    6.9%  

U.S. Government Agencies

    5.7%  

Short-Term Instruments

    4.5%  

Sovereign Issues

    1.4%  

Municipal Bonds & Notes

    0.1%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     5 Year     10 Years     Fund Inception
(11/16/2009)
 
LOGO   PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (Based on Net Asset Value)     (2.20)%       1.07%       1.11%       1.17%  
LOGO   PIMCO Enhanced Short Maturity Active Exchange-Traded Fund (At Market Price)(1)     (2.21)%       1.07%       1.10%       1.17%  
LOGO   FTSE 3-Month Treasury Bill Index±     0.19%       1.09%       0.62%       0.51%¨  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

¨ Average annual total return since 11/30/2009.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

± FTSE 3-Month Treasury Bill Index is an unmanaged index representing monthly return equivalents of yield averages of the last 3 month Treasury Bill issues.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.35%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

Investment Objective and Strategy Overview

 

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. The Fund may invest, without limitation, in U.S. dollar-denominated securities and instruments of foreign issuers. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   There were no material contributors for the Fund.

 

»   Overweight exposure to U.S. duration on the 1-5 year portion of the yield curve detracted from relative performance, as front-end U.S. interest rates rose.

 

»   Overweight exposure to non-agency residential mortgage-backed securities detracted from relative performance, as spreads widened.

 

»   Holdings of investment grade corporate credit detracted from relative performance, as corporate credit spreads widened.

 

         ANNUAL REPORT     |     JUNE 30, 2022     17
    


Table of Contents

PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund

 

 
 
  Ticker Symbol - MUNI

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

Municipal Bonds & Notes

 

Health, Hospital & Nursing Home Revenue

    11.3%  

Ad Valorem Property Tax

    10.3%  

Natural Gas Revenue

    5.9%  

Electric Power & Light Revenue

    5.8%  

Water Revenue

    5.7%  

Miscellaneous Revenue

    4.6%  

General Fund

    3.7%  

Tobacco Settlement Funded

    3.7%  

Highway Revenue Tolls

    3.6%  

Income Tax Revenue

    3.5%  

Sales Tax Revenue

    3.4%  

Appropriations

    3.2%  

Industrial Revenue

    2.6%  

Fuel Sales Tax Revenue

    2.3%  

Miscellaneous Taxes

    2.2%  

College & University Revenue

    2.0%  

Port, Airport & Marina Revenue

    1.8%  

Nuclear Revenue

    1.7%  

Lease (Appropriation)

    1.4%  

Other

    5.4%  

Short-Term Instruments

    15.9%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

 

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     5 Year     10 Years     Fund Inception
(11/30/2009)
 
LOGO   PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund (Based on Net Asset Value)     (7.63)%       1.41%       1.76%       2.47%  
LOGO   PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund (At Market Price)(1)     (7.85)%       1.39%       1.75%       2.46%  
LOGO   Bloomberg 1-15 Year Municipal Bond Index±     (6.53)%       1.47%       2.08%       2.77%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

± Bloomberg 1-15 Year Municipal Bond Index consists of a broad selection of investment grade general obligation and revenue bonds of maturities ranging from one year to 17 years. It is an unmanaged index representative of the tax exempt bond market.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.35%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

Investment Objective and Strategy Overview

 

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”). Municipal Bonds generally are issued by or on behalf of states and local governments and their agencies, authorities and other instrumentalities. 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Underweight duration positioning contributed to performance, as benchmark municipal yields broadly rose.

 

»   Underweight exposure to the transportation sector contributed to performance, as the sector underperformed the broad municipal market.

 

»   Underweight exposure to the education sector contributed to performance, as the sector underperformed the broad municipal market.

 

»   Overweight exposure to the industrial revenue sector detracted from performance, as the sector underperformed the broad municipal market.

 

»   Overweight exposure to the healthcare sector detracted from performance, as the sector underperformed the broad municipal market.

 

»   Security selection within the special tax sector detracted from performance, as holdings underperformed the broad municipal market.

 

       
18   PIMCO ETF TRUST            


Table of Contents

PIMCO Municipal Income Opportunities Active Exchange-Traded Fund

 

 
 
  Ticker Symbol - MINO

 

Cumulative Returns Through June 30, 2022

 

LOGO

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

Municipal Bonds & Notes

   

Health, Hospital & Nursing Home Revenue

    20.2%    

Sales Tax Revenue

    13.3%    

Electric Power & Light Revenue

    8.0%    

Natural Gas Revenue

    7.1%    

Industrial Revenue

    5.9%    

Miscellaneous Revenue

    5.5%    

Tobacco Settlement Funded

    4.9%    

Economic Development Revenue

    4.8%    

Port, Airport & Marina Revenue

    4.7%    

Appropriations

    4.0%    

Ad Valorem Property Tax

    3.9%    

Lease (Appropriation)

    2.5%    

Local or Guaranteed Housing

    2.3%    

College & University Revenue

    1.2%    

Other

    4.0%    

Short-Term Instruments

    7.7%          
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

 

Cumulative Total Return for the period ended June 30, 2022  
        Fund Inception
(09/08/2021)*
 
LOGO   PIMCO Municipal Income Opportunities Active Exchange-Traded Fund
(Based on Net Asset Value)
    (10.89)%  
LOGO   PIMCO Municipal Income Opportunities Active Exchange-Traded Fund
(At Market Price)(1)
    (10.75)%  
LOGO   Bloomberg Municipal Bond Index±     (8.96)%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

* Cumulative return.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1)

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.

 

± Bloomberg Municipal Bond Index consists of a broad selection of investment-grade general obligation and revenue bonds of maturities ranging from one year to 30 years. It is an unmanaged index representative of the tax-exempt bond market. The index is made up of all investment grade municipal bonds issued after 12/31/90 having a remaining maturity of at least one year.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.54%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

Investment Objective and Strategy Overview

 

PIMCO Municipal Income Opportunities Active Exchange-Traded Fund seeks current income exempt from federal income tax and long-term capital appreciation, by investing under normal circumstances at least 80% of its assets in 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”). Municipal Bonds generally are issued by or on behalf of states and local governments and their agencies, authorities and other instrumentalities. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Underweight duration positioning contributed to performance, as benchmark municipal yields broadly rose.

 

»   Security selection within the water and sewer sector contributed to performance, as holdings outperformed the broad municipal market.

 

»   Underweight exposure to the transportation sector contributed to performance, as the sector underperformed the broad municipal market.

 

»   Overweight exposure to the industrial revenue sector detracted from performance, as the sector underperformed the broad municipal market.

 

»   Overweight exposure to the healthcare sector detracted from performance, as the sector underperformed the broad municipal market.

 

»   Security selection within the special tax sector detracted from performance, as holdings underperformed the broad municipal market.

 

         ANNUAL REPORT     |     JUNE 30, 2022     19
    


Table of Contents

PIMCO Senior Loan Active Exchange-Traded Fund

 

 
 
  Ticker Symbol - LONZ

 

Allocation Breakdown as of June 30, 2022§

 

Loan Participations and Assignments

    52.3%  

Short-Term Instruments

    42.7%  

Corporate Bonds & Notes

    5.0%  
 

% of Investments, at value.

 

§ 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

 

A line graph is not included since the Fund has less than six months of performance.

Cumulative Total Return for the period ended June 30, 2022  
        Fund Inception
(06/08/2022)*
 
  PIMCO Senior Loan Active Exchange-Traded Fund (Based on Net Asset Value)     (3.68)%  
  PIMCO Senior Loan Active Exchange-Traded Fund (At Market Price)(1)     (3.40)%  
    iBoxx USD Liquid Leveraged Loans Index±     (3.39)%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

* Cumulative return.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1)

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.

 

± iBoxx USD Liquid Leveraged Loans Index comprises approximately 100 of the most liquid, tradable USD leveraged loans. Index constituents are derived using selection criteria such as loan type, minimum size, liquidity, credit ratings, initial spreads and minimum time to maturity.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.80%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

Investment Objective and Strategy Overview

 

PIMCO Senior Loan Active Exchange-Traded Fund seeks to provide current income consistent with prudent investment management by investing, under normal circumstances, at least 80% of its assets in a diversified portfolio of Senior Loans, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. “Senior Loans” include senior secured floating rate bank loans, also referred to as leveraged loans, bank loans and floating rate loans, that are first or second lien loans. The Fund may also invest in collateralized loan obligations and high-yield corporate debt securities, which may also be represented by forwards or derivatives such as options, futures contracts or swap agreements. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Security selection in the diversified media sector contributed to performance, as the Fund’s diversified media positions outperformed the broader sector.

 

»   Security selection in the gaming lodging and leisure sector contributed to performance, as the Fund’s gaming lodging and leisure positions outperformed the broader sector.

 

»   Overweight exposure to the broadcasting sector contributed to performance, as the sector outperformed the broader market.

 

»   Security selection in the broadcasting sector detracted from performance, as the Fund’s broadcasting positions underperformed the broader sector.

 

»   Security selection in the healthcare sector detracted from performance, as the Fund’s healthcare positions underperformed the broader sector.

 

»   Security selection in the housing sector detracted from performance, as the Fund’s housing positions underperformed the broader sector.

 

       
20   PIMCO ETF TRUST            


Table of Contents

PIMCO Short Term Municipal Bond Active Exchange-Traded Fund

 

 
 
  Ticker Symbol - SMMU

 

Cumulative Returns Through June 30, 2022

 

LOGO

 

$10,000 invested at the end of the month when the Fund commenced operations.

 

Allocation Breakdown as of June 30, 2022§

 

Municipal Bonds & Notes

 

Ad Valorem Property Tax

    17.1%  

Health, Hospital & Nursing Home Revenue

    11.8%  

Natural Gas Revenue

    6.5%  

Electric Power & Light Revenue

    5.9%  

College & University Revenue

    5.6%  

Water Revenue

    3.8%  

Sales Tax Revenue

    3.4%  

General Fund

    3.3%  

Highway Revenue Tolls

    3.0%  

Tobacco Settlement Funded

    2.8%  

Appropriations

    2.7%  

Income Tax Revenue

    2.5%  

Industrial Revenue

    1.6%  

Lease (Appropriation)

    1.1%  

Miscellaneous Revenue

    1.0%  

Other

    12.1%  

Short-Term Instruments

    15.5%  

U.S. Treasury Obligations

    0.3%  
   

% of Investments, at value.

 

  § 

Allocation Breakdown and % of investments exclude securities sold short and financial derivative instruments, if any.

 

Average Annual Total Return for the period ended June 30, 2022  
        1 Year     5 Year     10 Years     Fund Inception
(02/01/2010)
 
LOGO   PIMCO Short Term Municipal Bond Active Exchange-Traded Fund (Based on Net Asset Value)     (3.03)%       1.03%       0.88%       1.01%  
LOGO   PIMCO Short Term Municipal Bond Active Exchange-Traded Fund (At Market Price)(1)     (2.98)%       1.09%       0.90%       1.02%  
LOGO   Bloomberg 1-Year Municipal Bond Index±     (1.24)%       0.99%       0.85%       0.94%  

 

All Fund returns are net of fees and expenses and include applicable fee waivers and/or expense limitations. Absent any applicable fee waivers and/or expense limitations, performance would have been lower and there can be no assurance that any such waivers or limitations will continue in the future.

 

Market Returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower. Market and NAV returns assume that dividends and capital gain distributions have been reinvested in the Fund at market price and NAV, respectively.

 

(1) 

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.

 

± The Bloomberg 1-Year Municipal Bond Index is the 1 Year (1-2) component of the Municipal Bond Index. The Index is a rules-based, market-value-weighted index engineered for the long term tax-exempt bond market. To be included in the Index, bonds must be rated investment-grade (Baa3/BBB- or higher) by at least two of the following ratings agencies: Moody’s, S&P and Fitch. If only two of the three agencies rate the security, the lower rating is used to determine index eligibility. If only one of the three agencies rates a security, the rating must be investment-grade. They must have an outstanding par value of at least $7 million and be issued as part of a transaction of at least $75 million. The bonds must be fixed rate, have a dated-date after December 31, 1990, and must be at least one year from their maturity date. Remarketed issues, taxable municipal bonds, bonds with floating rates, and derivatives, are excluded from the benchmark.

 

It is not possible to invest directly in an unmanaged index.

 

Performance quoted represents past performance. Past performance is not a guarantee or a reliable indicator of future results. Current performance may be lower or higher than performance shown. Investment return and the principal value of an investment will fluctuate. Shares may be worth more or less than original cost when redeemed by authorized participants. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on the redemption of Fund shares. Differences in the Fund’s performance versus the index and related attribution information with respect to particular categories of securities or individual positions may be attributable, in part, to differences in the pricing methodologies used by the Fund and the index. Performance data current to the most recent month-end is available at www.pimcoetfs.com or via (888) 400-4ETF.

 

The Fund’s total annual operating expense ratio in effect as of period end was 0.35%. Details regarding any changes to the Fund’s operating expenses, subsequent to period end, can be found in the Fund’s current prospectus, as supplemented.

 

Investment Objective and Strategy Overview

 

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”). Municipal Bonds generally are issued by or on behalf of states and local governments and their agencies, authorities and other instrumentalities. 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. Fund strategies may change from time to time. Please refer to the Fund’s current prospectus for more information regarding the Fund’s strategy.

 

Fund Insights at NAV

 

The following affected performance (on a gross basis) during the reporting period:

 

»   Security selection within the pre-refunded segment contributed to performance, as holdings outperformed the broad municipal market.

 

»   There were no other material contributors for this Fund.

 

»   Overweight duration positioning detracted from performance, as benchmark municipal yields increased.

 

»   Overweight exposure to the industrial revenue sector detracted from performance, as the sector underperformed the broad municipal market.

 

»   Overweight exposure to the healthcare sector detracted from performance, as the sector underperformed the broad municipal market.

 

         ANNUAL REPORT     |     JUNE 30, 2022     21
    


Table of Contents
Expense Examples              

 

Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage commissions paid on purchases and sales of Fund shares and (2) ongoing costs, management fees and other Fund expenses. The Example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other exchange-traded funds.

 

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for all Funds is from January 1, 2022 to June 30, 2022 unless noted otherwise in the table and footnotes below.

 

Actual Expenses

The information in the table under the heading “Actual” provides information about actual account values and actual expenses. You may use this information, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.60), then multiply the result by the number in the column titled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

 

Hypothetical Example for Comparison Purposes

The information in the table under the heading “Hypothetical (5% return before expenses)” provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other exchange-traded funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other exchange-traded funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as brokerage commissions paid on purchases and sales of shares of the Funds. Therefore, the information under the heading “Hypothetical (5% return before expenses)” is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different exchange-traded funds. In addition, if these transactional costs were included, your costs would have been higher.

 

Expense ratios may vary period to period because of various factors, such as an increase in expenses not covered by the management fees (such as expenses of the independent trustees and their counsel, extraordinary expenses and interest expense).

 

          Actual           Hypothetical
(5% return before expenses)
              
          Beginning
Account Value
(01/01/22)
    Ending
Account Value
(06/30/22)
    Expenses Paid
During Period*
          Beginning
Account Value
(01/01/22)
    Ending
Account Value
(06/30/22)
    Expenses Paid
During Period*
          Net Annualized
Expense Ratio**
 
PIMCO 25+ Year Zero Coupon U.S. Treasury Index Exchange-Traded Fund     $  1,000.00     $ 712.10     $  0.63             $  1,000.00     $  1,023.78     $  0.74               0.15
PIMCO 1-5 Year U.S. TIPS Index Exchange-Traded Fund       1,000.00       977.40       0.97               1,000.00       1,023.54       0.99               0.20  
PIMCO 15+ Year U.S. TIPS Index Exchange-Traded Fund       1,000.00       738.00       0.85               1,000.00       1,023.54       0.99               0.20  
PIMCO Broad U.S. TIPS Index Exchange-Traded Fund       1,000.00       900.80       0.93               1,000.00       1,023.54       0.99               0.20  
PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund       1,000.00       910.90       2.58               1,000.00       1,021.82       2.73               0.55  
PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund       1,000.00       862.00       0.91               1,000.00       1,023.54       0.99               0.20  
PIMCO Active Bond Exchange-Traded Fund       1,000.00       879.60       2.58               1,000.00       1,021.77       2.78               0.56  
PIMCO Enhanced Low Duration Active Exchange-Traded Fund       1,000.00        961.00       2.74               1,000.00       1,021.73       2.83               0.57  
PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund       1,000.00       986.00       1.27               1,000.00       1,023.25       1.29               0.26  
PIMCO Enhanced Short Maturity Active Exchange-Traded Fund       1,000.00       979.40       1.75               1,000.00       1,022.76       1.79               0.36  
PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund       1,000.00       923.00       1.65               1,000.00       1,022.80       1.74               0.35  
PIMCO Municipal Income Opportunities Active Exchange-Traded Fund       1,000.00       888.40       1.85               1,000.00       1,022.56       1.98               0.40  
PIMCO Senior Loan Active Exchange-Traded Fund(a)       1,000.00       963.20       0.30               1,000.00       1,022.02       2.53               0.51  
PIMCO Short Term Municipal Bond Active Exchange-Traded Fund       1,000.00       970.60       1.69         1,000.00       1,022.80       1.74         0.35  

 

* Expenses Paid During Period are equal to the net annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 179/365 (to reflect the one-half year period).

 

** Net Annualized Expense Ratio is reflective of any applicable contractual fee waivers and/or expense reimbursements or voluntary fee waivers. Details regarding fee waivers, if any, can be found in Note 9, Fees and Expenses, in the Notes to Financial Statements.

 

(a) The Beginning Account Value is reflective as of 06/08/22 for Actual expense. Expenses paid in the Actual expense section are equal to the Net Annualized Expense Ratio for the Fund, multiplied by the average account value over the period, multiplied by 22/365 (to reflect the period since inception date of 06/08/22). Hypothetical expenses reflect an amount as if the Fund had been operational for the entire fiscal year.

 

       
22   PIMCO ETF TRUST            


Table of Contents

 

 

 

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         ANNUAL REPORT     |     JUNE 30, 2022     23
    


Table of Contents
Financial Highlights              

 

          Investment Operations     Less Distributions(c)  
                                                 
Selected Per Share Data for the Year or Period Ended^:   Net Asset
Value
Beginning
of Year
or Period(a)
    Net
Investment
Income (Loss)(b)
    Net
Realized/
Unrealized
Gain (Loss)
    Total     From Net
Investment
Income
    From Net
Realized
Capital
Gains
    Tax Basis
Return of
Capital
    Total  

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

               

06/30/2022

  $   145.38     $   2.59     $   (37.32   $   (34.73   $   (2.38   $ 0.00     $ 0.00     $   (2.38

06/30/2021

    173.14       2.49       (27.75     (25.26     (2.50     0.00       0.00       (2.50

06/30/2020

    128.17       2.99       45.06       48.05       (3.08     0.00       0.00       (3.08

06/30/2019

    115.51       3.15       12.73       15.88       (3.22     0.00       0.00       (3.22

06/30/2018

    117.38       3.11       (1.85     1.26       (3.13     0.00       0.00       (3.13

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

               

06/30/2022

  $ 55.05     $ 2.97     $ (2.83   $ 0.14     $ (2.88   $ 0.00     $ 0.00     $ (2.88

06/30/2021

    53.21       1.85       1.35       3.20       (1.36     0.00       0.00       (1.36

06/30/2020

    52.62       0.26       1.56       1.82       (1.07     0.00       (0.16     (1.23

06/30/2019

    51.76       0.97       0.64       1.61       (0.75     0.00       0.00       (0.75

06/30/2018

    52.18       1.04       (0.51     0.53       (0.95     0.00       0.00       (0.95

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

               

06/30/2022

  $ 86.49     $ 4.78     $ (21.26   $ (16.48   $ (4.82   $ 0.00     $ 0.00     $ (4.82

06/30/2021

    83.31       2.10       2.85       4.95       (1.77     0.00       0.00       (1.77

06/30/2020

    69.61       0.19       15.22       15.41       (1.71     0.00       (0.00     (1.71

06/30/2019

    67.57       1.58       1.72       3.30       (1.26     0.00       0.00       (1.26

06/30/2018

    65.64       2.03       1.79       3.82       (1.89     0.00       0.00       (1.89

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

               

06/30/2022

  $ 65.77     $ 3.65     $ (7.47   $ (3.82   $   (3.79   $   (0.54   $ 0.00     $ (4.33

06/30/2021

    63.20       2.07       1.89       3.96       (1.39     0.00       0.00       (1.39

06/30/2020

    59.46       0.22       4.82       5.04       (1.09     0.00       (0.21     (1.30

06/30/2019

    57.61       1.08       1.57       2.65       (0.80     0.00       0.00       (0.80

06/30/2018

    57.61       1.25       (0.07     1.18       (1.18     0.00       0.00       (1.18

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

               

06/30/2022

  $ 99.99     $ 3.33     $ (11.31   $ (7.98   $ (3.45   $ 0.00     $ 0.00     $ (3.45

06/30/2021

    91.45       3.70       9.16       12.86       (4.32     0.00       0.00       (4.32

06/30/2020

    100.71       4.08       (8.54     (4.46     (4.80     0.00       0.00       (4.80

06/30/2019

    100.07       4.63       0.90       5.53       (4.89     0.00       0.00       (4.89

06/30/2018

    101.62       4.44       (1.28     3.16       (4.71     0.00       0.00       (4.71

PIMCO Investment Grade Corporate Bond Index Exchange-Traded Fund

               

06/30/2022

  $ 114.60     $ 2.64     $ (18.11   $ (15.47   $ (2.72   $ (0.08   $ 0.00     $ (2.80

06/30/2021

    114.04       2.92       0.79       3.71       (3.01     (0.14     0.00       (3.15

06/30/2020

    107.27       3.40       6.88       10.28       (3.51     0.00       0.00       (3.51

06/30/2019

    100.41       3.44       6.96       10.40       (3.54     0.00       0.00       (3.54

06/30/2018

    104.90       3.31       (4.43     (1.12     (3.31     (0.06     0.00       (3.37

PIMCO Active Bond Exchange-Traded Fund

               

06/30/2022

  $   111.01     $   2.52     $   (15.52   $   (13.00   $   (2.85   $ 0.00     $ 0.00     $   (2.85

06/30/2021

    111.39       2.27       0.16       2.43       (2.81     0.00       0.00       (2.81

06/30/2020

    107.54       2.88       4.42       7.30       (3.45     0.00       0.00       (3.45

06/30/2019

    103.19       3.54       4.49       8.03       (3.68     0.00       0.00       (3.68

06/30/2018

    106.07       3.17       (2.73     0.44       (3.06     0.00         (0.26     (3.32

PIMCO Enhanced Low Duration Active Exchange-Traded Fund

               

06/30/2022

  $ 101.78     $ 1.43     $ (5.87   $ (4.44   $ (1.18   $ 0.00     $ 0.00     $ (1.18

06/30/2021

    101.79       1.16       0.43       1.59       (1.60     0.00       0.00       (1.60

06/30/2020

    100.15       2.61       2.06       4.67       (3.03     0.00       0.00       (3.03

06/30/2019

    99.61       2.96       0.62       3.58       (3.04     0.00       0.00       (3.04

06/30/2018

    101.02       2.51       (1.42     1.09       (2.50     0.00       0.00       (2.50

PIMCO Enhanced Short Maturity Active ESG Exchange-Traded Fund

               

06/30/2022

  $ 100.66     $ 0.67     $ (2.11   $ (1.44   $ (0.71   $   (0.08   $ 0.00     $ (0.79

06/30/2021

    100.64       0.74       0.26       1.00       (0.98     0.00       0.00       (0.98

12/10/2019 - 06/30/2020

    100.00       1.04       0.49       1.53       (0.89     0.00       0.00       (0.89

PIMCO Enhanced Short Maturity Active Exchange-Traded Fund

               

06/30/2022

  $ 101.99     $ 0.67     $ (2.90   $ (2.23   $ (0.62   $ (0.01   $ 0.00     $ (0.63

06/30/2021

    101.65       0.52       0.39       0.91       (0.57     0.00       0.00       (0.57

06/30/2020

    101.75       2.06       0.15       2.21       (2.31     0.00       0.00       (2.31

06/30/2019

    101.58       2.73       0.11       2.84       (2.67     0.00       0.00       (2.67

06/30/2018

    101.74       1.95       (0.23     1.72       (1.85     (0.03     0.00       (1.88

 

       
24   PIMCO ETF TRUST      See Accompanying Notes  


Table of Contents
        

 

            Ratios/Supplemental Data  
                  Ratios to Average Net Assets        
Net Asset
Value End of
Year or
Period(a)
    Total
Return(d)
    Net Assets
End of Year
or Period
(000s)
    Expenses     Expenses
Excluding
Waivers
    Expenses
Excluding
Interest
Expense
    Expenses
Excluding
Interest
Expense and
Waivers
    Net
Investment
Income (Loss)
    Portfolio
Turnover
Rate(e)
 
 

    

    

 

 

               
$   108.27       (24.29 )%    $ 435,244       0.15     0.15     0.15     0.15     1.90     12
  145.38       (14.70     395,447       0.15       0.15       0.15       0.15       1.59       25  
  173.14       37.97       375,713       0.15       0.15       0.15       0.15       1.98       14  
  128.17       14.17       265,315       0.15       0.15       0.15       0.15       2.79       21  
  115.51       1.08       164,028       0.15       0.15       0.15       0.15       2.71       19  
               
$ 52.31       0.18   $   1,575,509       0.20     0.20     0.20     0.20     5.46     23
  55.05       6.07       972,716       0.20       0.20       0.20       0.20       3.40       26  
  53.21       3.52       628,978       0.20       0.20       0.20       0.20       0.49       30  
  52.62       3.17       748,304       0.20       0.20       0.20       0.20       1.89       36  
  51.76       1.02       826,530       0.20       0.20       0.20       0.20       2.01       32  
               
$ 65.19       (20.04 )%    $ 620,606       0.20     0.20     0.20     0.20     5.69     4
  86.49       6.00       602,828       0.20       0.20       0.20       0.20       2.46       4  
  83.31       22.47       614,024       0.20       0.20       0.20       0.20       0.25       9  
  69.61       5.06       178,903       0.20       0.20       0.20       0.20       2.45       6  
  67.57       5.88       254,745       0.20       0.20       0.20       0.20       3.05       10  
               
$ 57.62       (6.25 )%    $ 194,771       0.20     0.20     0.20     0.20     5.70     177
  65.77       6.31       176,261       0.20       0.20       0.20       0.20       3.19       5  
  63.20       8.61       61,936       0.20       0.20       0.20       0.20       0.35       10  
  59.46       4.69       52,327       0.20       0.20       0.20       0.20       1.89       9  
  57.61       2.07       50,695       0.21       0.21       0.21       0.21       2.18       8  
 

    

    

 

 

               
$ 88.56       (8.24 )%    $ 1,115,806       0.55     0.55     0.55     0.55     3.43     45
  99.99       14.35       2,239,839       0.55       0.55       0.55       0.55       3.81       65  
  91.45       (4.56     1,156,826       0.56       0.56       0.55       0.55       4.22       36  
  100.71       5.71       1,460,224       0.56       0.56       0.55       0.55       4.66       27  
  100.07       3.18       1,666,164       0.56       0.56       0.55       0.55       4.41       42  
 

    

    

 

 

               
$ 96.33       (13.77 )%    $ 580,883       0.20     0.20     0.20     0.20     2.42     41
  114.60       3.29       794,189       0.20       0.20       0.20       0.20       2.55       21  
  114.04       9.76       659,123       0.20       0.20       0.20       0.20       3.10       18  
  107.27       10.65       797,018       0.20       0.20       0.20       0.20       3.41       27  
  100.41       (1.12     756,084       0.20       0.20       0.20       0.20       3.20       10  
               
$ 95.16       (11.96 )%    $ 3,224,915       0.56     0.56     0.55     0.55     2.37     368
    111.01       2.20       4,282,895       0.55       0.55       0.55       0.55       2.04       273  
  111.39       6.92       3,400,704       0.57       0.57       0.55       0.55       2.65       146  
  107.54       7.99       2,422,925       0.73       0.73       0.55       0.55       3.42       155  
  103.19       0.41       2,072,132       0.76       0.76       0.55       0.55       3.03       142  
               
$ 96.16       (4.38 )%    $ 1,444,341       0.53     0.53     0.46     0.46     1.44     269
  101.78       1.57       1,129,706       0.47       0.49       0.44       0.46       1.13       73  
  101.79       4.77       496,743       0.49       0.56       0.39       0.46       2.61       378  
  100.15       3.66       352,514       0.79       0.86       0.39       0.46       2.98       1,613  
  99.61       1.09       157,382       1.02       1.09       0.39       0.46       2.51       326  
               
$ 98.43       (1.43 )%    $ 184,071       0.25     0.37     0.24     0.36     0.67     75
  100.66       0.99       153,000       0.25       0.37       0.25       0.37       0.74       120  
  100.64       1.54       87,553       0.27     0.51     0.24     0.48     1.87     102  
               
$ 99.13       (2.20 )%    $   11,757,526       0.36     0.36     0.35     0.35     0.67     100
  101.99       0.89       14,024,433       0.35       0.35       0.35       0.35       0.51       71  
  101.65       2.21       13,914,440       0.37       0.37       0.35       0.35       2.03       81  
  101.75       2.84       11,939,913       0.36       0.36       0.35       0.35       2.70       72  
  101.58       1.70       9,410,140       0.42       0.42       0.35       0.35       1.92       86  

 

         ANNUAL REPORT     |     JUNE 30, 2022     25
    


Table of Contents
Financial Highlights   (Cont.)  

 

          Investment Operations     Less Distributions(c)  
                                                 
Selected Per Share Data for the Year or Period Ended^:   Net Asset
Value
Beginning
of Year
or Period(a)
    Net
Investment
Income (Loss)(b)
    Net
Realized/
Unrealized
Gain (Loss)
    Total     From Net
Investment
Income
    From Net
Realized
Capital
Gains
    Tax Basis
Return of
Capital
    Total  

PIMCO Intermediate Municipal Bond Active Exchange-Traded Fund

               

06/30/2022

  $   56.72     $   0.92     $   (5.19   $   (4.27   $   (0.89   $   0.00     $   0.00     $   (0.89

06/30/2021

    55.73       0.97       1.00       1.97       (0.98     0.00       0.00       (0.98

06/30/2020

    54.77       1.24       0.96       2.20       (1.24     0.00       0.00       (1.24

06/30/2019

    52.84       1.40       1.93       3.33       (1.40     0.00       0.00       (1.40

06/30/2018

    53.48       1.30       (0.64     0.66       (1.30     0.00       0.00       (1.30

PIMCO Municipal Income Opportunities Active Exchange-Traded Fund

               

09/08/2021 - 06/30/2022

  $ 50.00     $ 0.66     $ (6.07   $ (5.41   $ (0.53   $ 0.00     $ 0.00     $ (0.53

PIMCO Senior Loan Active Exchange-Traded Fund

               

06/08/2022 - 06/30/2022

  $ 50.00     $ 0.06     $ (1.88   $ (1.82   $ 0.00     $ 0.00     $ 0.00     $ 0.00  

PIMCO Short Term Municipal Bond Active Exchange-Traded Fund

               

06/30/2022

  $ 51.41     $ 0.34     $ (1.89   $ (1.55   $ (0.30   $ 0.00     $ 0.00     $ (0.30

06/30/2021

    51.04       0.42       0.42       0.84       (0.47     0.00       0.00       (0.47

06/30/2020

    50.53       0.81       0.51       1.32       (0.81     0.00       0.00       (0.81

06/30/2019

    49.91       0.95       0.61       1.56       (0.94     0.00       0.00       (0.94

06/30/2018

    50.25       0.77       (0.35     0.42       (0.76     0.00       0.00       (0.76

 

^

A zero balance may reflect actual amounts rounding to less than $0.01 or 0.01%.

*

Annualized, except for organizational expense, if any.

(a)

Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Funds.

(b) 

Per share amounts based on average number of shares outstanding during the year or period.

(c) 

The tax characterization of distributions is determined in accordance with Federal income tax regulations. See Note 2, Distributions to Shareholders, in the Notes to Financial Statements for more information.

(d) 

Includes adjustments required by U.S. GAAP and may differ from net asset values and performance reported elsewhere by the Funds. Additionally, excludes initial sales charges and contingent deferred sales charges.

(e) 

Portfolio turnover rate excludes securities received or delivered from in-kind processing of creation or redemptions.

 

       
26   PIMCO ETF TRUST      See Accompanying Notes  


Table of Contents
        

 

            Ratios/Supplemental Data  
                  Ratios to Average Net Assets        
Net Asset
Value End of
Year or
Period(a)
    Total
Return(d)
    Net Assets
End of Year
or Period
(000s)
    Expenses     Expenses
Excluding
Waivers
    Expenses
Excluding
Interest
Expense
    Expenses
Excluding
Interest
Expense and
Waivers
    Net
Investment
Income (Loss)
    Portfolio
Turnover
Rate(e)
 
 

    

    

 

 

               
$   51.56       (7.63 )%    $   847,128       0.35     0.35     0.35     0.35     1.68     50
  56.72       3.56       647,152       0.35       0.35       0.35       0.35       1.72       16  
  55.73       4.06       468,662       0.35       0.35       0.35       0.35       2.25       34  
  54.77       6.41       304,515       0.35       0.35       0.35       0.35       2.63       39  
  52.84       1.25       275,309       0.35       0.35       0.35       0.35       2.44       27  
 

    

    

 

 

               
$ 44.06       (10.89 )%    $ 42,296       0.40 %*      0.68 %*      0.40 %*      0.68 %*      1.71 %*      238