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.