Gundlach is one of a small amount of bond managers with the temerity to recently state that the Fed will not boost rates this year. TOTL has a modified adjusted duration of 3.89 years. The ETF currently holds 324 bonds, 54.4% of which are mortgage-backed securities.
A combined 21% of TOTL’s weight goes to high-yielding bank loans and emerging markets debt, which helps give the ETF a 30-day SEC yield of 3.15%, nearly 80 basis points above where 10-year Treasury yields closed Friday.
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.
SPDR DoubleLine Total Return Tactical ETF
