Today, DoubleLine Capital launched the DoubleLine Multi-Sector Income ETF (DMX) on the NYSE Arca.
With a net expense ratio of 0.49%, the actively managed DMX seeks to generate yield. Additionally, the fund has a secondary goal of generating capital appreciation.
As the ETF’s title implies, DMX invests in securities across a wide variety of fixed income sectors. This can include investment-grade corporate debt, junk bonds, bank loans, and collateralized loan obligations, among others.
Dynamic Fixed Income Strategy
While DMX expects to be invested in a wide variety of fixed income sectors, the fund may primarily focus on a single sector at times. Sector allocation will be determined in part by ongoing market, economic, and political conditions. Due to the fund’s active management team, DMX can more adaptably reallocate its security exposure to best benefit from ongoing trends.
“Through individual security selection across credit markets,” noted Robert Cohen, director of DoubleLine’s Global Developed Credit team. “We aim to build a portfolio that provides attractive yields and income with potentially lower volatility than one composed solely of high yield corporates.”
When it comes to curating DMX’s portfolio, the fund managers apply a controlled risk approach. By doing so, the ETF aims to better navigate ongoing risks in fixed income and tap into the strong yield performance within individual market sectors.
As a result, DMX’s fund team closely manages where the fund is currently positioned in terms of duration. DMX has no particular limit on its average duration, though the portfolio managers expect it to sit between zero to seven years.
“Active ETFs have been extremely popular in 2024,” noted Todd Rosenbluth, head of research at VettaFi. “DoubleLine has fixed income expertise that is being brought to meet advisors in the ETF market.”
DoubleLine Capital now has seven ETFs listed on U.S. markets. As a whole, these funds account for over $1.3 billion in assets under management.
For more news, information, and analysis, visit VettaFi | ETF Trends.