Bond king Jeff Gundlach’s foray into the world of exchange traded funds is now official with Tuesday’s debut of the SPDR DoubleLine Total Return Tactical ETF (NYSEArca: TOTL), the first ETF to offer investors access to the investment process at Gundlach’s DoubleLine Capital.
Gundlach, DoubleLine’s CEO and chief investment officer, will serve as the SPDR DoubleLine Total Return Tactical ETF’s portfolio manager along with Philip Barach, DoubleLine president, and Jeffrey Sherman, portfolio manager and participant on the firm’s Fixed Income Asset Allocation Committee.
“Investors are concerned about rising interest rates, they’re concerned about the bond market in general,” said said State Street Global Advisors Head of Research David Mazza in an interview with ETF Trends. “In investment-grade fixed income, active managers, particularly those with an expertise actually have the ability to consistently outperform. Now you can get access to it with the cost-efficiency and ease-of-use of an ETF.” [State Street, Gundlach to Partner on new ETF]
The actively managed ETF, which will be managed with a top-down macroeconomic process, offers investors exposure to multiple fixed income asset classes using a bottom-up security selection methodology. Half of TOTL’s initial portfolio is comprised of U.S. government debt as part of the new ETF’s duration management effort while the rest of the portfolio includes investment-grade and high-yield corporate as well as dollar-denominated emerging markets debt, among other bonds, as part of TOTL’s credit risk management process.