It's generally dangerous to bet against Bill Gross, particularly when the PIMCO fund has an expense ratio that is equal to the expense ratio for the index fund, 0.50 percent. In addition, both funds are unhedged, so both will pass on any currency value change.
As I commented earlier in a column, the expense ratio on this ETF is hard to stomach. The longest time period we can compare them head-to-head is YTD where the recent figures were 7.25 percent for the PIMCO fund and 6.50 percent for the SPDR ETF.
At the moment Morningstar isn't posting maturity data on the PIMCO fund so we can't compare on that measure.
Bottom line: If you're not an index purist, the PIMCO fund is a good entry--- known management talent at the same cost as an index fund.
Here are Morningstar links for information on both funds:
PIMCO Foreign Bond Fund http://quicktake.morningstar.com/FundNet/Snapshot.aspx?Country=USA&Symbol=PFUIX
SPDR Lehman International Treasury Bond ETF http://quicktake.morningstar.com/etfnet/Snapshot.aspx?Country=USA&Symbol=BWX
Scott
