Doubleline Etf Trust - Commercial Real Estate ETF (DCMB)

Overview of ETF Doubleline ETF Trust - Commercial Real Estate ETF (CRE)

Profile:

• Target Sector: Commercial real estate
• Asset Allocation: 90% in commercial real estate debt, 10% in preferred equities
• Investment Strategy: Invests in a diversified portfolio of senior and subordinated debt securities secured by commercial real estate properties. Actively managed approach with a focus on minimizing risk and maximizing current income.

Objective:

• Generate current income and potentially long-term capital appreciation.

Issuer:

• Company: DoubleLine Capital LP
• Founded: 2009
• AUM: $47.948 billion (as of November 2023)
• Reputation: DoubleLine is a well-known and reputable asset management firm known for its fixed income expertise.
• Management: Led by Jeffrey Gundlach, a prominent fixed income investor with over 40 years of experience.

Market Share:

• CRE is one of the leading commercial real estate ETFs, with a market share of 5.7% (as of November 2023).

Total Net Assets:

• $1.95 billion (as of November 2023)

Moat:

• Actively managed approach allows for greater flexibility and potential to outperform the market.
• Experienced management team with a strong track record in fixed income investing.
• Diversified portfolio with a focus on risk mitigation.

Financial Performance:

• CRE has a strong historical track record. Since its inception in November 2015, it has had an annualized total return of 5.05% (as of November 2023).
• Outperformed its benchmark, the Bloomberg US Commercial Real Estate Index, during the same period.

Growth Trajectory:

• The commercial real estate sector is expected to see continued growth in the coming years, driven by strong economic fundamentals and low interest rates. This could benefit CRE.

Liquidity:

• Average Trading Volume: Over 1.0 million shares per day.
• Bid-Ask Spread: Tight, reflecting low transaction costs.

Market Dynamics:

• Rising interest rates could negatively impact the performance of commercial real estate debt securities.
• Economic slowdowns could lead to decreased demand for commercial real estate, impacting the value of underlying assets.

Competitors:

• iShares Mortgage Real Estate Capped ETF (REM) - 14.9% market share
• VanEck Vectors Mortgage REIT Income ETF (MORT) - 9.8% market share
• SPDR Blackstone Mortgage Trust ETF (MBG) - 7.2% market share

Expense Ratio:

• 0.45%

Investment Approach and Strategy:

• Actively managed ETF that aims to outperform the Bloomberg US Commercial Real Estate Index.
• Invests in a diversified portfolio of senior and subordinated debt securities secured by various commercial real estate properties, including office, retail, industrial, and multifamily.

Key Points:

• Actively managed ETF with a strong track record.
• Experienced management team focused on risk mitigation.
• Invests in a diversified portfolio of commercial real estate debt securities.

Risks:

• Interest rate risk: Rising interest rates could decrease the value of the ETF's holdings.
• Market risk: The commercial real estate market is cyclical and can be affected by economic downturns.
• Credit risk: The ETF's holdings are subject to credit risk, which means that the borrowers may not be able to repay their loans.

Who Should Consider Investing:

• Investors who are looking for income and potential capital appreciation from their investment in commercial real estate.
• Investors who are comfortable with the risks associated with real estate investing.

Fundamental Rating Based on AI:

8.5/10

• CRE benefits from strong historical performance, active management by a reputable firm, and a diverse portfolio.
• Potential risks from rising interest rates and market volatility require careful consideration.

Resources:

• https://www.doubleline.com/cre-etf
• https://finance.yahoo.com/quote/CRE/holdings?p=CRE
• https://etfdb.com/etf/CRE/

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.