Active bond ETF PYLD outperforms passive funds with 10% return and 5.9% yield, attracting $8B in flows.

The PIMCO Multisector Bond Active ETF (PYLD) has drawn $8.07 billion in net inflows over the past year, reaching nearly $20 billion in assets. It offers a yield of about 5.9%, outperforming passive bond funds like Vanguard's BND and iShares' AGG, which returned around 5.5% and 5.6% respectively in the last year. PYLD's active management allows dynamic allocation across various bond sectors, enabling it to capitalize on market conditions better than passive funds. However, this higher yield comes with increased credit risk and a higher expense ratio of 0.64%, making it suitable mainly for income-focused retirees willing to accept more risk for higher returns.