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Gundlach's DoubleLine Plans Closed-End Version of Shiller Enhanced CAPE Fund: Portfolio Products

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What You Need to Know

  • The forthcoming DoubleLine ETF will use derivatives and direct investments in global debt instruments.
  • Barclays bank launched its second gold-related ETN.
  • Both ETFGM and Direxion introduced 2x leveraged ETFs focused on the travel industry plus more leveraged ETFs.

DoubleLine is planning a closed end version of its DoubleLine Shiller Enhanced CAPE Fund, which tracks economist Robert Shiller’s cyclically adjusted price-to-earnings ratio (CAPE) and seeks additional return from fixed income collateral.

The $9.3 billion four-star-rated mutual fund has returned 12.13% year-to-date through June 18 vs. 10.93% for the S&P 500.

The closed-end version of the fund will have the same name, according to a filing with the Securities and Exchange commission, and it will use a variety of strategies, including derivatives or a combination of derivatives and direct investments, to provide a return before fees and expenses that approximates the return of the Shiller Barclays CAPE US Sector Total Return USD Index.

It will also actively allocate direct investments in debt instruments across the global fixed income universe and generate current gains from option premiums earned by writing (selling) call options on the S&P 500 Index.

The SEC application lists as the fund’s portfolio managers DoubleLine CEO Jeffrey Gundlach and Deputy Chief Investment Officer Jeffrey Sherman, who works in portfolio management and trade and specializes in derivatives-based and multi-asset strategies.

Barclays Launches Its Second Gold-Related ETN

Barclays bank has launched the Pacer iPath Gold Trendpilot exchange-traded notes (PBUG), which tracks the performance of the Pacer Barclays Gold Trendpilot Total Return Index. It is a companion to the bank’s iPath Gold ETN (GBUG) launched almost two years ago.

The index is designed to provide the total return of rolling futures contracts, which will become the first liquid nearby gold futures contracts three months in the future, plus the return of the weekly announced interest rate for the 3-month U.S. Treasury bill. The index allocates a gold exposure in increments of 100%, 50% or 0% based on market signals.

The ETN is an unsecured debt obligation of Barclays Bank PLC and according to the bank “involves significant risks, including possible loss of principal, and may not be suitable for all investors.” The expense ratio of Barclay’s new ETN is 0.65%, unlike its predecessor, which had no fee.

The launch “could not come at a better time as we continue to see investor demand for commodities and we believe that the Trendpilot methodology is uniquely positioned to offer risk mitigated access to gold,” said Shilpa Akella, managing director and head of cross-asset structuring Americas at Barclays, in a statement.

ETF Managers Group Introduces First Suite of Leveraged ETFs

ETF Managers Group (ETFMG) has introduced three leveraged ETFs: the 2x Daily Travel Tech ETF (AWYX), the ETFMG Prime 2x Daly Junior Silver Miners ETFs (SILX) and its inverse, the ETFMG PRime 2x Daly Inverse Junior Silver Miners ETF (SINV).

AWYX seeks twice the return of the Prime Travel Technology Index NTR, which tracks  companies that provide technology via the internet and internet-connected devices to facilitate travel bookings and reservations, ride sharing and hailing, travel price comparison and travel advice. It seeks twice the return of the index NTR for a single day, not for any other period, and has an expense ratio of 0.95%.

SILX seeks twice the return of the Prime Junior Silver Miners & Explorers Index, comprising 25-35 public companies active in the silver mining exploration and production industry. SINV seeks twice the inverse return of the Prime Junior Silver Miners & Explorers Index.

All three ETFs seek double the return — or inverse — of their respective indexes for a single day and not for any other time period. All three also have an expense ratio of 0.95%.

Direxion Launches 2 Leveraged ETFs

Direxion has also launched a 2x leveraged ETF focused on travel, the Direxion Daily Travel & Vacation Bull 2X Shares (OOTO), as well as the Direxion Daily 5G Communications Bull 2X Shares (TENG). The ETFs seek 200% of the daily performance of the BlueStar Travel and Vacation Index and BlueStar 5G Communications Index, respectively.

The BlueStar Travel and Vacation Index provides exposure to global commercial airlines, hotels and resorts, resort casinos, travel agencies and online travel booking sites, hotel REITs, cruise lines, theme parks and ski resorts.

The BlueStar 5G Communications Index provides exposure to companies whose products and services are economically tied to the market’s adoption of 5G networking and communication technologies.

The next expense ratio of both ETFs is 1.07%.

“These Leveraged ETFs allow traders to take a bold position in two early-stage themes,” said  Dave Mazza, managing Ddirector at Direxion, in a statement.

Artisan Partners Closing Its International Value Strategy Again

Artisan said it will close its four-star-rated Artisan International Value Strategy (APHKX, institutional shares) to most new investors on June 30, just 15 months after a previous closure.

“Managing capacity has always been key to protecting the integrity of our investment strategies, and we believe now is the appropriate time to limit new investments in the strategy,” said CEO Eric Colson in a statement.

The fund was launched in 2002 and then closed to new investors in 2011 before reopening in March 2020.

Morningstar senior analyst Kevin McDevitt wrote that the fund had “a poor showing during the coronavirus-driven market sell-off, [which] coupled with asset outflows, caused strategy assets to fall to $15.9 billion from $22.0 billion in the quarter ended March 2020, allowing the team to reopen the fund to new investors.”

Since then the fund has bounced back, rising 74.9% through May 2021, trouncing the MSCI ACWI ex USA Index’s 58.6% return as well as 95% of its foreign large-blend Morningstar Category peers, and inflows returned, according to McDevitt.Total assets were $21.2 billion as of May 31, 2021.

Pictured: DoubleLine CEO Jeffrey Gundlach (Photo: Jim Lee/Bloomberg)