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Portfolio > ETFs > Broad Market

Gundlach’s DoubleLine to Launch Stock, Bond ETFs

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What You Need to Know

  • The firm aims to launch two actively managed U.S. ETFs in a first for the Los Angeles-based manager of $137 billion.
  • Money managers are rushing to launch ETFs as cash bleeds from mutual funds.

Jeffrey Gundlach’s DoubleLine Capital LP is planning to launch a pair of actively managed U.S. exchange-traded funds in a first for the Los Angeles-based manager of $137 billion.

The firm intends to create the DoubleLine Opportunistic Bond ETF and the DoubleLine Shiller CAPE U.S. Equities ETF, according to a Monday filing with the Securities and Exchange Commission.

The plan comes in what is already a record year for active ETF debuts. Money managers are rushing to launch products to meet investor demand as cash bleeds from mutual funds to the cheaper and easier-to-trade wrapper.

DoubleLine’s new equity offering will reference the Shiller Barclays CAPE US Sector TR USD Index, the filing says. The gauge incorporates the principles of long-term investing set out by Robert Shiller, who created the Cyclically Adjusted Price Earnings ratio, or CAPE, which assess market valuations alongside a decade of inflation-adjusted earnings.

Although referencing the index, the fund’s managers will have discretion to adjust exposures.

The Opportunistic Bond ETF will target a broad range of fixed-income securities, from collateralized debt obligations to government notes and more. Up to 50% can be invested in junk-rated debt, and as much as 5% in defaulted corporate securities, the filing says.

Tickers and expense ratios have yet to be published for either fund.

While it has no ETFs of its own yet, DoubleLine is an advisor to four other products. Three are from State Street and one from AdvisorShares, and they hold about $3.4 billion assets in total, according to data compiled by Bloomberg.

Among these, only one targets equities — the AdvisorShares DoubleLine Value Equity ETF (ticker DBLV), which seeks to outperform the Russell 1000 Value Index through holding large-cap value stocks.

(Photo: Alex Flynn/Bloomberg)

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