TOTL provides a methodical combination of traditional rate sensitive sectors with non-traditional credit sensitive areas to generate returns and diminish risk while helping advisors skirt risks found in traditional bond index.
Core bond index strategies present challenges in a low-yield environment since the U.S. Treasuries heavy core-bond strategy would have seen yields diminish considerably and duration lengthen. Consequently, investors are now exposed to the lowest yield-to-duration ratio since the inception of the Barclays U.S. Aggregate Index. [Inside the New Gundlach, State Street Bond ETF]
Nearly half of TOTL’s current portfolio is allocated to mortgage-backed securities with another 11.2% going to emerging markets debt. The new ETF also allocates almost 10.8% to bank loans, according to SSgA data. TOTL’s 30-day SEC yield is 3.12%.
SPDR DoubleLine Total Return Tactical ETF
Tom Lydon’s clients own shares of HYG and TLT.