State Street Global Advisors Head of Research David Mazza joined ETF Trends Publisher Tom Lydon at the Morningstar Investment Conference in Chicago to discuss strategies advisors can implement in fixed income portfolios to cope with the specter of rising interest rates.
Among the ETFs highlighted by Mazza is the SPDR DoubleLine Total Return Tactical ETF (NYSEArca: TOTL). TOTL is a partnership between State Street and Jeffrey Gundlach’s DoubleLine Capital. TOTL debuted in late February and can already lay claim to being one of this year’s most successful new ETFs with nearly $777 million in assets under management.
TOTL is not State Street’s only fixed income ETF that is a partnership with another big-name investment firm. The actively managed SPDR Blackstone/GSO Senior Loan ETF (NYSEArca: SRLN) has $681 million in assets under management, making it one of the largest bank loan ETFs on the market today. Like TOTL, SRLN is an idea to consider at time when Treasury yields are rising.
SRLN “gives investors and advisors a solution to help navigate a rising rates environment. What we see with loans is that they tend to do best when rates rise,” said Mazza.
Watch the video below to see the full interview.
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