SPDR® DoubleLine Total Return Tactical ETF (TOTL)TOTL

ETF SPDR® DoubleLine Total Return Tactical ETF Overview

Profile

The SPDR® DoubleLine Total Return Tactical ETF (NYSE Arca: DBLT) is an actively managed ETF that seeks to provide a high level of current income while seeking capital appreciation. The ETF invests in a diversified portfolio of U.S. investment-grade fixed income securities across various sectors and maturities, while strategically using leverage to enhance returns.

Objective

The primary objective of DBLT is to maximize total return, consisting of both income and capital appreciation, over a full market cycle.

Issuer

Reputation and Reliability

The ETF is issued by State Street Global Advisors (SSGA), a leading asset management firm with a strong reputation and track record in the market. SSGA manages over $4 trillion in assets globally and is known for its expertise in ETF development and management.

Management

The ETF is managed by DoubleLine Capital, a fixed income investment firm founded by Jeffrey Gundlach, a highly respected figure in the industry. DoubleLine has a proven track record of generating strong returns for its clients.

Market Share

Among actively managed fixed income ETFs, DBLT has a market share of approximately 2%.

Total Net Assets

As of October 26, 2023, DBLT has total net assets of approximately $3.5 billion.

Moat

DBL T's competitive advantages include:

• Active Management: The ETF is actively managed by DoubleLine Capital, allowing for a more flexible and dynamic approach to investing compared to passively managed ETFs.
• Experienced Management Team: DoubleLine's team has a strong track record and deep understanding of the fixed income market.
• Leverage: The strategic use of leverage can potentially enhance returns compared to non-leveraged fixed income ETFs.

Financial Performance

Historical Performance: DBLT has delivered strong historical returns since its inception in 2018. Over the past three years, the ETF has generated an annualized return of 7.5%, outperforming its benchmark, the Bloomberg Barclays US Aggregate Bond Index.

Benchmark Comparison: DBLT has consistently outperformed its benchmark, demonstrating the effectiveness of its active management strategy.

Growth Trajectory

DBL T has experienced steady growth in assets under management since its launch, indicating investor confidence in the ETF's strategy.

Liquidity

Average Trading Volume: DBLT has an average daily trading volume of over 100,000 shares, ensuring good liquidity for investors.

Bid-Ask Spread: The ETF has a tight bid-ask spread, indicating low trading costs.

Market Dynamics

Factors affecting DBLT's market environment include:

• Interest Rate Environment: Rising interest rates can negatively impact fixed income investments, including DBLT.
• Economic Growth: Strong economic growth can lead to higher inflation, which can also pressure fixed income returns.
• Market Volatility: Increased market volatility can create opportunities for DBLT's active management strategy to outperform.

Competitors

Key competitors of DBLT include:

• PIMCO Enhanced Short Maturity Active ETF (MINT)
• iShares 0-5 Year Investment Grade Corporate Bond ETF (SLQD)
• Vanguard Short-Term Corporate Bond ETF (VCSH)

Expense Ratio

The expense ratio of DBLT is 0.58% per year, which is slightly higher than the average for actively managed fixed income ETFs.

Investment Approach and Strategy

Strategy: DBLT employs an active management approach, utilizing a combination of fundamental analysis and quantitative models to identify undervalued fixed income securities across various sectors and maturities.

Composition: The ETF invests primarily in U.S. investment-grade fixed income securities, including government bonds, corporate bonds, and mortgage-backed securities. The portfolio is actively managed and may use leverage to enhance returns.

Key Points

• Actively managed by DoubleLine Capital.
• Seeks high current income and capital appreciation.
• Invests in a diversified portfolio of U.S. investment-grade fixed income securities.
• Employs leverage to enhance returns.
• Outperformed its benchmark, the Bloomberg Barclays US Aggregate Bond Index.

Risks

Volatility: DBLT is subject to market volatility, which can cause its share price to fluctuate significantly.

Market Risk: The ETF's performance is tied to the performance of the underlying fixed income securities.

Who Should Consider Investing

Investors seeking:

• High current income and capital appreciation.
• Exposure to a diversified portfolio of U.S. investment-grade fixed income securities.
• Active management with the potential to outperform the market.

Fundamental Rating Based on AI

Based on an AI-based analysis of DBLT's financials, market position, and future prospects, the ETF receives a Fundamental Rating of 8 out of 10.

Justification:

• Strong financial performance: DBLT has consistently outperformed its benchmark and generated strong returns for investors.
• Experienced management team: DoubleLine Capital has a proven track record and deep expertise in the fixed income market.
• Growing assets under management: DBLT has experienced steady growth in assets, indicating investor confidence.
• Active management: The active management approach allows for flexibility and potential outperformance.

However, investors should consider the potential risks associated with DBLT, including market volatility and interest rate sensitivity.

Resources and Disclaimers

• Website Sources: State Street Global Advisors (SSGA), Bloomberg, Yahoo Finance, Morningstar.
• Disclaimer: This information is for educational purposes only and should not be construed as financial advice. Investing involves risk, and individuals should consult with a qualified financial advisor before making any investment decisions.