Fund Description: PIMCO Short Term Municipal Bond Exchange-Traded Fund is an actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of the PIMCO ETF Trust, an open-ended investment management company. INVESTMENT OBJECTIVE: PIMCO Short Term Municipal Bond Strategy Fund seeks attractive tax-exempt income, consistent with preservation of capital. The Fund focus is on Short maturity municipal securities (exempt from federal income tax). Each Fund is actively managed and does not seek to replicate the performance of a specified Index. FUND STRATEGY: The Fund seeks to achieve its investment objective by investing under normal circumstances at least 80% of its assets in a diversified portfolio of debt securities whose interest is, in the opinion of bond counsel for the issuer at the time of issuance, exempt from federal income tax (Municipal Bonds). Municipal Bonds generally are issued by or on behalf of states and local governments and their agencies, authorities and other instrumentalities. The Fund does not intend to invest in securities whose interest is subject to the federal alternative minimum tax. The Fund may only invest in U.S. dollar-denominated investment grade debt securities, rated Baa or higher by Moody's, or equivalently rated by S&P or Fitch, or, if unrated, determined to be of comparable quality. The Fund may invest 25% or more of its total assets in Municipal Bonds that finance similar projects, such as those relating to education, health care, housing, transportation, and utilities, and 25% or more of its total assets in industrial development bonds. The average portfolio duration of this Fund varies based on the forecast for interest rates and under normal market conditions is not expected to exceed three years. The dollar-weighted average portfolio maturity of the Fund is normally not expected to exceed three years. The focus is on bonds with the potential to offer attractive current income, typically looking for bonds that can provide consistently attractive current yields or that are trading at competitive market prices. The Fund may purchase and sell securities on a when-issued, delayed delivery or forward commitment basis. The Fund may, without limitation, seek to obtain market exposure to the securities in which it primarily invests by entering into a series of purchase and sale contracts or by using other investment techniques (such as buy backs or dollar rolls). Unlike conventional exchange-traded funds, the Fund is not an index Fund and is actively managed. FUND MANAGEMENT: PIMCO serves as the investment manager for the Fund and is responsible for managing the investment activities of the Funds, the Funds' business affairs and other administrative matters, subject to the supervision of the Board of Trustees.