State Street’s (NYSE: STT) State Street Global Advisors, the second-largest U.S. issuer of exchange traded funds, and Jeffrey Gundlach’s DoubleLine Capital LP are partnering to launch an actively managed fixed income ETF.

The SPDR DoubleLine Total Return Tactical ETF is expected to be a direct competitor to the PIMCO Total Return (NYSEArca: BOND), the largest actively managed ETF. Assuming it comes to market, the SPDR DoubleLine Total Return Tactical ETF will trade on the New York Stock Exchange.

“The SPDR DoubleLine ETF will invest as much as 25 percent in corporate and sovereign high-yield debt, up to 15 percent in foreign-currency securities and a maximum of 25 percent in emerging markets,” Christopher Condon reported for Bloomberg.

Los Angeles-based Double Line currently offers 11 mutual funds including bond funds focusing on low duration bonds. The firm also offers multi-asset strategies as well as a mutual fund focusing on small-cap stocks.