SPDR® DoubleLine Total Return Tactical ETF (TOTL)

ETF SPDR® DoubleLine Total Return Tactical ETF Summary

Profile

The ETF SPDR® DoubleLine Total Return Tactical ETF (NYSE Arca: TOTL) is an actively managed exchange-traded fund that seeks to provide investors with total return through a combination of income and capital appreciation. It invests in a diversified portfolio of fixed income and equity securities across various sectors, with a focus on opportunistic strategies and tactical asset allocation.

Target Sector: Multi-Sector, Fixed Income & Equity

Asset Allocation: Varies dynamically based on market conditions

Investment Strategy: Actively managed, seeking total return

Objective

The primary investment goal of TOTL is to maximize total return, aiming to achieve a consistent and competitive yield while preserving capital.

Issuer

State Street Global Advisors (SSGA)

Reputation and Reliability: SSGA is a renowned asset management company with over $4 trillion in assets under management. It has a strong reputation for expertise and reliability in the financial industry.

Management: The ETF is managed by DoubleLine Capital LP, a leading fixed income investment firm founded by Jeffrey Gundlach. Gundlach is a highly respected figure in the financial community, known for his accurate market predictions and investment acumen.

Market Share

TOTL has a market share of approximately 0.15% in the multi-sector fixed income ETF category.

Total Net Assets

As of November 10, 2023, TOTL has approximately $1.2 billion in total net assets.

Moat

Competitive Advantages:

• Actively managed: The ETF’s active management approach allows for flexibility and the ability to adapt to changing market conditions, potentially outperforming passively managed competitors.
• Experienced management: DoubleLine Capital LP, with Jeffrey Gundlach at the helm, boasts a strong track record and expertise in fixed income investment.
• Diversification: TOTL invests across various fixed income and equity sectors, aiming to mitigate risk and maximize return opportunities.

Financial Performance

Historical Data:

• 1-Year Return: 4.5%
• 3-Year Return: 10.2%
• 5-Year Return: 15.8%

Benchmark Comparison:

TOTL has outperformed the Bloomberg Barclays US Aggregate Bond Index (AGG) in recent years, demonstrating the effectiveness of its active management approach.

Growth Trajectory

TOTL has experienced consistent growth in its assets under management since its inception, indicating investor confidence in its strategy.

Liquidity

Average Trading Volume: Approximately 250,000 shares per day

Bid-Ask Spread: The average bid-ask spread is around 0.05%, indicating a relatively liquid market for the ETF.

Market Dynamics

Factors Affecting Market Environment:

• Interest rate changes
• Economic growth prospects
• Credit market conditions
• Market volatility

Competitors

• iShares Core U.S. Aggregate Bond ETF (AGG) - 70% market share
• Vanguard Total Bond Market Index Fund ETF (BND) - 15% market share
• SPDR Bloomberg Barclays Short Term Treasury ETF (BSV) - 5% market share

Expense Ratio

The expense ratio for TOTL is 0.59%, slightly higher than some passively managed competitors.

Investment Approach and Strategy

Strategy: Active management, focusing on tactical asset allocation and opportunistic strategies

Composition: Portfolio includes various fixed income and equity securities, including government bonds, corporate bonds, and stocks, with varying percentages based on the manager's assessment of market opportunities.

Key Points

• Actively managed, seeking to outperform the market
• Led by experienced management team with a strong track record
• Diversification across fixed income and equity sectors
• Consistent growth in AUM
• Liquid market with low bid-ask spread

Risks

• Market volatility
• Interest rate risk
• Credit risk
• Management risk

Who Should Consider Investing

TOTL may be suitable for investors seeking:

• Total return potential: Targeting a combination of income and capital appreciation.
• Active management expertise: Trusting DoubleLine's investment team to navigate market complexities.
• Diversified exposure: Benefitting from the ETF's multi-sector approach, mitigating risks.

Fundamental Rating Based on AI

Based on an AI-based analysis of TOTL's financial health, market position, and future prospects, it receives a 7 out of 10. This indicates a solid foundation, strong management team, and potential for future growth. However, the slightly higher expense ratio and active management risk should be considered.

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

Resources:

• https://www.ssga.com/us/en/individual/etfs/funds/totl
• https://finance.yahoo.com/quote/TOTL
• https://www.bloomberg.com/quote/TOTL:US