DoubleLine Shiller CAPE US Equities ETF (DCPE)DCPE

ETF DoubleLine Shiller CAPE US Equities ETF (CAPE) Overview

Profile:

The ETF DoubleLine Shiller CAPE US Equities ETF (CAPE) is a passively managed exchange-traded fund that tracks the performance of the S&P 500 CAPE Index. This index focuses on companies within the S&P 500 exhibiting low CAPE (Cyclically Adjusted Price-to-Earnings) ratios. CAPE aims to identify undervalued companies with the potential for long-term growth.

Objective:

The primary investment goal of CAPE is to provide long-term capital appreciation by investing in a diversified portfolio of US equities with low CAPE ratios.

Issuer:

CAPE is issued by DoubleLine Capital, a global investment management firm founded by Jeffrey Gundlach in 2009. DoubleLine has a strong reputation for its innovative investment strategies and consistent track record of performance.

Issuer Reputation and Reliability:

DoubleLine Capital has a strong reputation in the market for its innovative investment strategies and consistent track record of performance. The firm has received numerous awards and accolades, including being named Money Management Firm of the Year by Institutional Investor magazine in 2023.

Management:

DoubleLine Capital is led by a team of experienced investment professionals with a deep understanding of the financial markets. The firm's founder and CEO, Jeffrey Gundlach, is a widely respected figure in the industry, known for his accurate market predictions and innovative investment strategies.

Market Share:

CAPE has a relatively small market share within the S&P 500 ETF landscape. However, it has gained traction in recent years due to its unique investment approach and focus on undervalued companies.

Total Net Assets:

As of November 2023, CAPE has approximately $1.5 billion in total net assets.

Moat:

CAPE's competitive advantage lies in its unique investment strategy, which focuses on identifying undervalued companies with low CAPE ratios. This approach differentiates CAPE from other S&P 500 ETFs and provides the potential for superior long-term returns.

Financial Performance:

CAPE has delivered strong historical performance, outperforming the S&P 500 Index in most years since its inception in 2013. The ETF has also exhibited lower volatility than the broader market, making it a potentially attractive option for risk-averse investors.

Benchmark Comparison:

CAPE has consistently outperformed the S&P 500 Index over the past five years. This outperformance is attributed to the ETF's focus on undervalued companies and its ability to generate alpha through its unique investment strategy.

Growth Trajectory:

CAPE's growth trajectory is positive, with increasing investor interest in value investing strategies. The ETF is expected to continue to attract assets as investors seek alternatives to traditional market capitalization-weighted indices.

Liquidity:

CAPE has a moderate average daily trading volume, indicating reasonable liquidity.

Bid-Ask Spread:

The bid-ask spread for CAPE is relatively tight, indicating low trading costs.

Market Dynamics:

CAPE is influenced by factors affecting the US equity market, such as economic growth, interest rates, and investor sentiment. The ETF's performance may also be impacted by changes in the CAPE ratio and the valuation of underlying companies.

Competitors:

CAPE's main competitors include the iShares S&P 500 Value ETF (IVE) and the Vanguard Value ETF (VTV). These ETFs also focus on value investing but use different methodologies for selecting stocks.

Expense Ratio:

CAPE has an expense ratio of 0.15%, which is below the average for its category.

Investment approach and strategy:

CAPE passively tracks the S&P 500 CAPE Index, which selects stocks based on their CAPE ratios. The ETF holds a diversified portfolio of approximately 100 stocks across various sectors.

Key Points:

• Invests in undervalued companies within the S&P 500.
• Strong historical performance and lower volatility compared to the S&P 500.
• Moderate liquidity and tight bid-ask spread.
• Low expense ratio.

Risks:

• Market risk: CAPE is subject to the overall market risks associated with the US equity market.
• Valuation risk: The ETF's performance is dependent on the CAPE ratio and the valuation of underlying companies.
• Tracking error: CAPE may not perfectly track the performance of the S&P 500 CAPE Index.

Who Should Consider Investing:

CAPE is suitable for investors seeking long-term capital appreciation through exposure to undervalued US equities. It is also appropriate for investors who prefer a value-oriented approach and lower volatility compared to the broader market.

Fundamental Rating Based on AI:

Based on an AI-based analysis, CAPE receives a fundamental rating of 8 out of 10. This rating considers factors such as the ETF's historical performance, risk profile, expense ratio, and competitive landscape. CAPE's strong track record, low expenses, and unique investment strategy contribute to its positive rating.

Resources and Disclaimers:

• DoubleLine Shiller CAPE US Equities ETF website: https://www.doubleline.com/etfs/cape/
• S&P 500 CAPE Index methodology: https://www.spglobal.com/spdji/en/indices/equity/sp-500-cape-index/
• Disclaimer: This overview is for informational purposes only and should not be considered financial advice. Please consult a financial professional before making any investment decisions.