PIMCO Multisector Bond Active Exchange-Traded Fund

PIMCO Multisector Bond Active Exchange-Traded Fund (PYLD) is an actively managed bond fund. It spreads its money across mortgage-backed securities, corporate and high-yield bonds, emerging-market debt and other asset-backed securities, without following any benchmark. Its main draw is income: a 6.56% trailing yield, paid monthly, as of October 29, 2026. The trade-off is cost. Its expense ratio is 0.56%, compared with a 0.14% average for similar bond funds.

• Over the year to Nov 2, 2026, PYLD returned +1.1%, 3rd of 8 among similar funds.
• Its worst full calendar year was 2024 (+7.7%); its best was 2025 (+9.6%).
• The deepest fall in its price history was 4.5% (Jul 13, 2023 to Oct 19, 2023), recovered by Nov 28, 2023.

As of Jun 30, 2026, the fund held 1,793 securities; the ten largest made up 36.13% of assets.

The bonds mature in 15.8 years on average (weighted by size), with an average coupon of 5.31%.

• Over the three months to Jun 30, 2026, investors added a net $2.05B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.15%, +0.65%, +0.53%.

PIMCO's managers choose what the fund owns, and they don't track any benchmark. At least 80% of assets go into bonds and similar debt from US and foreign governments and companies. The fund can also hold mortgage-backed and other asset-backed securities, as well as foreign currencies. There is no cap on high-yield ("junk") bonds, which are rated below investment grade, or on emerging-market debt. The fund aims for undervalued sectors and favors long-term positioning over short-term trading. Average duration, a measure of how much prices react to interest-rate changes, normally stays between two and eight years.

As of June 30, 2026, the fund held 1,793 securities, and its top 10 made up 36% of assets. The largest were repurchase agreements with BofA Securities, which are short-term, collateral-backed loans, at about 7.3%. Next came several UMBS TBA contracts (agreements to buy pools of government-backed mortgages at a later date) at 7.0%, 6.5% and 4.8%. Bond positions added up to about 112% of net assets, which forward commitments like these make possible.

The fund may use options, futures and swaps without limit, and it can sell short. As of June 30, 2026, it held 612 derivative positions, including credit default swap indexes tied to investment-grade and high-yield bonds. Portfolio turnover was 685%, and rolling mortgage contracts forward can push that figure up.

• PYLD charges 0.56% a year, versus an average of 0.14% for the similar funds below (8th of 8, cheapest first).
• Of that, 0.65% 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 $57 in the first year and $813 over 10 years (assuming a 5% annual return).

PYLD pays monthly and had a 6.56% trailing yield as of October 29, 2026, well above broad bond index funds.

PYLD could add monthly income to a retirement portfolio. Its trailing 12-month payout was $1.68 per share, a 6.56% yield, as of October 29, 2026. The fund launched in June 2023, so it was not around for the 2008 crisis, the 2020 COVID crash or the 2022 bear market. Its deepest drop was 4.5%, from July to October 2023, and it recovered in about six weeks. It returned 7.42% in 2024 and 9.79% in 2025, its weakest and strongest full years. That short, calm record may understate how junk bonds, emerging-market debt and loan-backed securities behave in a credit crisis, when someone drawing income could have to sell at depressed prices. It also costs 0.56% a year, which comes to $57 in the first year on $10,000 under the SEC's standard example. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).