State Street Global Advisors (SSGA) announced it released a new ETF in Tuesday’s trading session, the SPDR DoubleLine Total Return Tactical ETF (NYSEARCA: TOTL). The ETF was developed by SSGA and DoubleLine Capital, and it is the first actively managed ETF to offer investors access to DoubleLine’s investment research process.

This ETF incorporates a core fixed-income strategy that seeks to maximize total return over a full market cycle by actively investing across global fixed income sectors.

Notably, the ETF will be managed by Jeffrey Gundlach, CEO and CIO of DoubleLine Capital, Phillip Barach, President of DoubleLine, and Jeffrey Sherman, portfolio manager and participant on the firm’s Fixed Income Asset Allocation Committee.

Jeffrey Gundlach is considered by many to be crowned the new bond king in the wake of Bill Gross’ departure from PIMCO.

DoubleLine will actively manage the ETF through a top-down macroeconomic process, allocating capital among different fixed income sectors, with bottom-up security selection.

Mr. Gundlach said:

DoubleLine is pleased to partner with SSGA, the pioneer of exchange traded funds. DoubleLine was founded on the idea of striving to deliver better risk-adjusted returns across our different investment strategies. In TOTL, we will strive to maintain the fund’s portfolio investments with a shorter duration than the Barclays US Aggregate Bond Index while seeking to generate a healthy yield. That combination is key to meeting the fund’s total return objective within a discipline of strong risk management.

Select characteristics of total return tactical ETF:

• Portfolio managers Gundlach, Barach and Sherman have decades of experience investing in fixed income. DoubleLine’s Fixed Income Asset Allocation Committee members have worked together for an average of 16 years and have more than 22 years average industry experience. DoubleLine oversees $64 billion in assets under management.
• The ETF combines traditional fixed income investment sectors of the Barclays US Aggregate Bond Index and fixed income asset classes outside the index with the goal of maximizing total return over a full market cycle through active sector allocation and security selection.
• DoubleLine intends to maintain TOTL’s portfolio investments with a shorter duration than that of the Barclays US Aggregate Bond Index. Duration is a measure of the sensitivity of the price of a fixed income investment to a change in interest rates expressed as a number of years.
• The ETF structure offers transparency, intraday trading liquidity and no investment minimum.

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