Gundlach's DoubleLine Preps Two Active ETFs

(CityWire) - DoubleLine, Jeffrey Gundlach’s $137bn asset management firm, plans to launch two active non-transparent ETFs, according to a new filing with the Securities and Exchange Commission. 

The firm is set to launch the DoubleLine Opportunistic Bond ETF and the DoubleLine Shiller CAPE US Equities ETF, according to the filing.

The ETFs’ management fees and portfolio managers were not immediately disclosed. The funds will not disclose assets every day, and while the equities ETF will make investments ‘related’ to the Shiller Barclays CAPE US Sector TR USD index, both will be actively managed.

The $9.6bn DoubleLine Shiller Enhanced CAPE mutual fund, which is co-managed by Gundlach and Jeffrey Sherman, could provide a parallel for investor expectations, said Todd Rosenbluth, director of ETF and mutual fund research for CFRA, via Twitter. He noted that the mutual fund has an expense ratio of 0.56% for institutional class shares.

The bond ETF DoubleLine plans to launch could invest up to half of its net assets in junk bonds and up to 5% in defaulted corporate securities, according to the filing. The fund may make bets on bankruptcy ‘where the portfolio managers believe the restructured enterprise valuations or liquidation valuations may exceed current market values,’ the filing said. 

The funds would be DoubleLine’s first owned active ETFs, though it advises four other active strategies, including State Street’s SPDR DoubleLine Total Return Tactical ETF.

DoubleLine is the latest firm to debut active ETFs in 2021. Though most money in ETFs is tied up in passive funds, the year has seen more and more firms bring active ETFs to market, either through new launches or mutual fund conversions.

DoubleLine did not immediately respond to a request for comment. 

By Will Schmitt 
05 October 2021


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