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.
As a result, concerns over the impact benchmarks have on bond investments have pushed many investors to alternative investment styles, such as “total return” or “unconstrained” – active bond strategies that are not constrained by traditional indexing methodologies and adapt to changes in the interest rate environment.
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.
SPDR DoubleLine Total Return Tactical ETF
