“TOTL serves up a core fixed-income strategy and seeks to outperform the Barclays U.S. Aggregate Bond Index. At 0.55%, the ETF offers a less expensive way to benefit from Gundlach’s acumen than the 0.73% price tag for the retail share class of his DoubleLine Total Return Fund (DLTNX),” according to Morningstar. [Gundlach’s new Bond ETF]
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 3.88 years. The ETF currently holds 346 bonds, 53.6% of which are mortgage-backed securities.
The PowerShares LadderRite 0-5 Year Corporate Bond Portfolio (NasdaqGM: LDRI), which qualifies as a strategic beta fixed income offering, could be a new option for investors concerned about rising interest rates to consider due to the ETF’s lower duration and laddering approach.
LDRI’s “laddering methodology evenly staggers bond maturities so that they occur on regular intervals, providing an efficient balance between risk and return, which may help investors manage volatility during a period of rising interest rates,” according to PowerShares.
PowerShares LadderRite 0-5 Year Corporate Bond Portfolio
