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Pimco Global Bond Active ETF (CBOE: PGBF)

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Question asked 07/08/2026

Pimco Global Bond Active ETF (CBOE: PGBF)

To the MM Team, My question relates to bond funds and in particular global bond funds. From what I understand as interest rates go up the value of the bonds goes down, that is why bond funds have had relatively poor returns for the last five years. Assuming we are now at or near the top of the interest rate hiking cycle would I be correct in thinking now as a good time to invest in bond funds. You lock in good yields of around 5 to 6% and have the potential of capital gains as interest rate rates come down. With this in mind, I would like your thoughts on the Pimco ETF PGBF. Keep up the great work, Charles

Answer

Hi Charles,

The Pimco Global Bond Active ETF (PGBF) is an actively managed global fixed income ETF that listed on Cboe Australia in February 2025. The fund invests in a diversified portfolio of high-quality government, corporate and mortgage-backed securities, using PIMCO’s active approach to duration, credit, currency and security selection.

Importantly, the ETF is AUD-hedged, reducing foreign exchange risk for Australian investors.

PGBF forms part of Pimco’s Australian ETF suite alongside PDFI, PCRD and PAUS, leveraging PIMCO’s long-standing fixed income expertise. The fund currently has around $70 million in assets and yields approximately 4.3% – not 5-6%.

PGBF is designed as a core global bond holding, offering active exposure to global interest rates and credit markets. Unlike cash ETFs such as AAA, investors should expect the unit price to fluctuate with changes in bond yields and credit spreads, making it suitable for portfolio diversification rather than cash management.

We like the PGBF below $20 believing the next 10-15% is likely on the upside in line with our relatively dovish outlook towards central bank policy.

But we believe the RBA are less likely to hike than the Fed hence sticking with the same manager we prefer PIMCO’s Australian Bond Active ETF (PAUS).

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Pimco Global Bond Active ETF (PGBF)

LAST UPDATED 07/08/2026 12:23

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