At a glance
LONZ charges 0.61% a year, above the 0.06% average of the 7 funds most like it (the most expensive of 8). It has $574.0M in assets, the 8th largest of that group; it paid 8.96% of its price in distributions over the past 12 months, monthly. Over the past year it returned +4.8% with distributions reinvested, the best of those 8 funds; over three years it returned +7.4% a year. Its ten largest positions make up 36.4% of the fund, out of 310 in all.
The short version
PIMCO Senior Loan Active Exchange-Traded Fund (LONZ) is an actively managed fund. It mainly holds senior secured floating-rate loans to below-investment-grade companies, also called leveraged loans or bank loans. Because the loan rates reset as short-term rates move, the fund reacts very little to interest-rate changes. It pays monthly, with a trailing yield of 8.96% as of October 27, 2026. The trade-offs are junk-level credit risk and a 0.61% expense ratio, far above the 0.06% average of the bond ETFs it was compared with.
Price history
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LONZ +4.8% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| LONZ official prospectus, to Dec 31, 2025 | — | +6.27% | — | — | — | +8.16% |
| LONZ price data to Oct 27, 2026 | +3.2% | +4.8% | +7.4% | — | — | +7.5% |
- Over the year to Oct 27, 2026, LONZ returned +4.8%, 1st of 8 among similar funds.
- Its worst full calendar year was 2025 (+5.9%); its best was 2023 (+12.5%).
- The deepest fall in its price history was 4.2% (Feb 14, 2025 to Apr 4, 2025), recovered by May 12, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +3.2% | — |
| 2025 | +5.9% | +6.27% |
| 2024 | +9.8% | +9.26% |
| 2023 | +12.5% | +12.96% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.0700 | |
| 2025 | $3.7100 | -11.0% |
| 2024 | $4.1700 | -0.2% |
| 2023 | $4.1800 |
What's inside
As of Jun 30, 2026, the fund held 310 securities; the ten largest made up 36.36% of assets.
| Holding | Weight | |
|---|---|---|
| Citigroup Global Markets, Inc. RA | 15.09% | |
| BofA Securities, Inc. RA | 13.26% | |
| Jane Street Group LLC Loans | 1.24% | |
| BEIGNET INVESTOR LLC Bonds and notes | 1.05% | |
| IRB HOLDING CORP Loans | 1.04% | |
| Bausch & Lomb Corporation Loans | 0.99% | |
| Whatabrands LLC Loans | 0.98% | |
| AI AQUA MERGER SUB INC Loans | 0.93% | |
| SCIH SALT HOLDINGS INC Loans | 0.91% | |
| BELDEN INC Loans | 0.87% | |
| Mavis Tire Express Services Corp. Loans | 0.86% | |
| LifePoint Health Inc Loans | 0.85% | |
| Alliant Holdings Intermediate, LLC Loans | 0.85% | |
| LC AHAB US Bidco LLC Loans | 0.84% | |
| Olympus Water US Holding Corporation Loans | 0.81% |
By country
United States 108.5%Canada 1.86%Luxembourg 1.26%Netherlands 1.15%Jersey 0.48%By issuer
Companies 113.16%Other 0.7%US Treasury 0.04%The bonds mature in 5.2 years on average (weighted by size), with an average coupon of 6.36%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $200.7M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.43%, +0.42%, +0.12%.
How it works
LONZ does not copy an index. PIMCO's managers pick the holdings, with the goal of earning current income. Under normal conditions, at least 80% of assets go into senior loans and short-term investments. Senior loans are first- or second-lien loans. They sit at the top of a company's debt and are usually backed by collateral, so lenders get paid ahead of other creditors if the borrower defaults. Their interest rates float, resetting when a benchmark rate changes or on set dates. The fund may also buy collateralized loan obligations (pools of loans split into slices of different risk), high-yield bonds, up to 20% in preferred stock and up to 20% in non-dollar securities.
The Markit iBoxx USD Liquid Leveraged Loan Index serves only as a yardstick for interest-rate risk. The fund's duration, a measure of how much prices move when rates change, normally stays within one year of the index's duration. That was 0.12 years as of September 30, 2026. Managers may use swaps, futures, options and short sales.
Trading is heavy, with portfolio turnover of 136%. As of June 30, 2026, loans made up about 82% of net assets across 310 holdings. Repurchase agreements, which are short-term, cash-like loans to dealers, added about 29%. That made total exposure larger than net assets. The largest loans, including Jane Street, IRB Holding and Bausch & Lomb, were each close to 1%.
What it really costs
- LONZ charges 0.61% a year, versus an average of 0.06% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.7% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.1% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $62 in the first year and $873 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| LONZ | $62 | $217 | $385 | $873 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It pays monthly income from floating-rate loans, and its prices have moved little with interest rates, but its borrowers carry below-investment-grade credit risk.
LONZ could add monthly income that holds up when interest rates rise. Its trailing 12-month yield was 8.96% as of October 27, 2026. Because loan rates float, that income tends to shrink when short-term rates fall. The fund's record is short. It launched in June 2022, so it missed the 2008 crisis, the 2020 crash and most of the 2022 bear market. Its deepest drop was 4.2%, from February 14 to April 4, 2025, and it recovered by May 12, 2025. It has had no losing calendar year so far; its weakest, 2025, returned 6.27%. Still, these loans go to heavily indebted companies, and a deep recession could bring larger losses just when an investor needs to sell shares. In the SEC example, costs on $10,000 come to $62 after one year and $873 after 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income-focused investors who want monthly payouts (an 8.96% trailing yield as of October 27, 2026) and accept lending to below-investment-grade companies.
- Investors worried about rising rates: loan interest floats, and the fund's benchmark index had a duration of only 0.12 years as of September 30, 2026.
- Investors who want PIMCO's active credit selection in leveraged loans and accept heavy trading, with portfolio turnover of 136%.
Look elsewhere if
- Cost-focused investors: the 0.61% expense ratio ranked highest of eight in its comparison group, where the average was 0.06%.
- Anyone looking for investment-grade safety or protection in stock crashes; its borrowers are junk-rated, and it has not yet been through a recession.
- Investors expecting falling rates to help: floating loan interest resets lower, and borrowers may repay loans early, leaving the fund to reinvest at lower rates.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| LONZ this fund | 5.2 yrs | 0.61% | $574.0M | +4.8% | +7.4% |
| SPIB SPDR Portfolio Intermediate Term Corporate … | 5.6 yrs | 0.04% | $11.57B | 0.0% | +6.1% |
| IGSB iShares 1-5 Year Investment Grade Corporate… | 3.7 yrs | 0.04% | $23.46B | +1.5% | +5.4% |
| VCSH Vanguard Short-Term Corporate Bond ETF | 3.5 yrs | 0.03% | $51.74B | +1.9% | +5.7% |
| VCIT Vanguard Intermediate-Term Corporate Bond E… | 8.2 yrs | 0.03% | $72.04B | -0.6% | +7.1% |
| IGIB iShares 5-10 Year Investment Grade Corporat… | 8.3 yrs | 0.04% | $18.72B | -1.0% | +6.4% |
| JPST JPMorgan Ultra-Short Income ETF | 2 yrs | 0.18% | $41.13B | +3.1% | +4.8% |
| USIG iShares Broad USD Investment Grade Corporat… | 10.3 yrs | 0.04% | $17.85B | -0.9% | +5.7% |
Questions investors ask
Does LONZ pay monthly dividends?
Yes. LONZ pays income monthly. Over the 12 months to October 27, 2026, it paid $4.37 per share, a trailing yield of 8.96%. Most of that income comes from interest on floating-rate senior loans, which reset as short-term rates change. Payments can therefore vary from month to month and tend to fall if interest rates drop. Defaults among the below-investment-grade borrowers could also cut income.
Is LONZ good for retirement income?
It can provide monthly income with very little interest-rate sensitivity, but it comes with credit risk. The loans go to below-investment-grade companies. Since its June 2022 launch, its deepest drop was 4.2% in early 2025, and it recovered in about 1.2 months. It has never been tested by a recession, though. The 0.61% expense ratio is high for a bond ETF. It may suit retirees who want income and accept junk-level credit exposure.
What's the difference between LONZ and SPIB?
SPIB, the SPDR Portfolio Intermediate Term Corporate Bond ETF, tracks fixed-rate investment-grade corporate bonds and charges 0.04%. LONZ holds floating-rate junk-rated loans, is actively managed and charges 0.61%. The two were matched on average maturity and issuer mix, not strategy. As of October 27, 2026, LONZ returned 4.8% over one year and 7.4% a year over three years, compared with 0% and 6.1% for SPIB. SPIB carries more interest-rate risk; LONZ carries more credit risk.
What is the LONZ expense ratio?
The net expense ratio is 0.61%, according to the prospectus filed October 27, 2026. That reflects a 0.70% management fee reduced by a 0.10% fee waiver. In the SEC's standard example, $10,000 invested with a 5% annual return would cost about $62 after one year, $217 after three, $385 after five and $873 after ten. That ranked highest of eight in its comparison group, where the average was 0.06%.
How risky is LONZ?
LONZ has been calm so far but carries real credit risk. Its three-year volatility was 2.8% and its deepest drop was 4.2% as of October 27, 2026. Its weakest quarter, ending March 31, 2025, lost just 0.16%. However, the prospectus warns of senior loan, high-yield, liquidity and derivatives risks. Its borrowers are below investment grade, and the fund launched in June 2022, so it has not been through a recession or a wave of defaults.