PIMCO 1-3 Year US Treasury Index ETF | TUZ

Discussion of the Cash portion of the Permanent Portfolio

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herbgoat
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PIMCO 1-3 Year US Treasury Index ETF | TUZ

Post by herbgoat » Mon Jul 12, 2010 9:41 am

I started using TUZ for the cash portion instead of SHY. The Expense Ratio is .09% vs .15% for SHY. Does anyone know a reason why I should not be doing this? I realize this is not as safe as using SHV and I understand that risk. Wondering if anyone else knows a reason why not. TUZ is pretty new and everyone seems to always talk about SHY with no mention of TUZ. Yet a .06% difference in ER seems pretty huge on an asset that returns so little to begin with.
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craigr
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Re: PIMCO 1-3 Year US Treasury Index ETF | TUZ

Post by craigr » Mon Jul 12, 2010 4:18 pm

I generally avoid new investment products. But, if TUZ is holding treasuries and only treasuries with a low expense ratio it will probably be fine. Be sure you read the prospectus to understand how it works and whether the management can spring any surprises with regards to the allocation.
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Re: PIMCO 1-3 Year US Treasury Index ETF | TUZ

Post by tcat » Tue Jul 27, 2010 7:21 am

The low fee of .09 for the pimco etf TUZ is its introductory rate (new fund).  After a year it states it will go to its normal rate of .15 

I'm in TUZ also which is 1-3 years.  I was looking for a treasuries ETF 1-5 years but apparently there is no such animal except in tips.
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Re: PIMCO 1-3 Year US Treasury Index ETF | TUZ

Post by craigr » Tue Jul 27, 2010 12:10 pm

iShares has SHY which is 1-3 years Treasuries. They also have IEF which is 7-10 years intermediate Treasuries.
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Jan Van
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Re: PIMCO 1-3 Year US Treasury Index ETF | TUZ

Post by Jan Van » Fri Jul 30, 2010 2:47 pm

ITE is 1-10 years...
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