DoubleLine Shiller CAPE US Equities ETF (DCPE)

Overview

The DoubleLine Shiller CAPE U.S. Equities ETF (DSEU) seeks long-term capital appreciation by investing in U.S. equities, selected based on the Shiller CAPE ratio, aiming to identify undervalued companies. It targets a value-oriented approach to U.S. equity investing.

Reputation and Reliability

DoubleLine is a well-regarded investment firm known for its expertise in fixed income and alternative investments. They have a solid track record in managing ETFs, though this is not their primary focus.

Management Expertise

The management team has experience in quantitative investing and factor-based strategies, leveraging the Shiller CAPE ratio to identify potentially undervalued stocks.

Goal

To seek long-term capital appreciation through investments in U.S. equities.

Investment Approach and Strategy

Strategy: The ETF tracks an index based on the Shiller CAPE ratio, a valuation metric, to identify and invest in undervalued U.S. stocks.

Composition The ETF holds a portfolio of U.S. equities selected based on the Shiller CAPE ratio, focusing on potentially undervalued companies across various sectors.

Market Share: DSEU's market share is relatively small compared to major broad-market equity ETFs.

Total Net Assets (AUM): 64700000

Key Competitors

• Vanguard Value ETF (VTV)
• iShares Russell 1000 Value ETF (IWD)
• SPDR Portfolio S&P 500 Value ETF (SPYV)

Competitive Landscape

The ETF market is highly competitive with many value-focused options. DSEU's advantage lies in its unique Shiller CAPE-based selection methodology. A disadvantage is its smaller AUM and potentially lower liquidity compared to larger, more established value ETFs.

Historical Performance: The historical performance of DSEU has been mixed, influenced by the effectiveness of the Shiller CAPE strategy in various market cycles.

Benchmark Comparison: The ETF's performance is often compared to broad market indexes like the S&P 500 and value-focused indexes to assess its relative performance.

Expense Ratio: 0.4

Average Trading Volume

The average trading volume for DSEU is moderate, indicating acceptable but not exceptional liquidity.

Bid-Ask Spread

The bid-ask spread for DSEU is usually reasonable but can widen during periods of market volatility.

Market Environment Factors

Economic indicators, interest rates, and investor sentiment all influence the performance of DSEU. Value stocks tend to perform well during economic recoveries and periods of rising interest rates.

Growth Trajectory

DSEU's growth trajectory depends on the sustained demand for value-oriented investment strategies and the effectiveness of the Shiller CAPE methodology.

Competitive Edge

DSEU's unique competitive edge stems from its utilization of the Shiller CAPE ratio, offering a differentiated approach to value investing compared to traditional market-cap-weighted indexes. This approach aims to identify companies that are undervalued based on cyclically adjusted earnings. While providing diversification, it also targets potentially higher returns through disciplined valuation. The fund is designed for investors who are looking for a unique value strategy.

Volatility

DSEU's volatility can vary depending on market conditions and the specific holdings of the ETF. Value stocks can sometimes exhibit lower volatility than growth stocks.

Market Risk

DSEU is subject to market risk, which includes the possibility of losses due to economic downturns, market corrections, and other factors that can negatively impact the stock market.

Ideal Investor Profile

The ideal investor for DSEU is someone seeking long-term capital appreciation through a value-oriented strategy and is comfortable with the potential for fluctuations in the market.

Market Risk

DSEU is suitable for long-term investors who are looking for a unique approach to value investing and are willing to accept a moderate level of risk.

DoubleLine Shiller CAPE U.S. Equities ETF (DSEU) offers a unique value-oriented approach to U.S. equity investing by leveraging the Shiller CAPE ratio to identify undervalued stocks. While providing an alternative to traditional value ETFs, it's relatively small size, moderate trading volume, and performance variations depending on market cycles should be considered. The ETF's utilization of the Shiller CAPE ratio distinguishes it from conventional market-cap weighted ETFs. DSEU is most suitable for long-term investors with a value-focused investment objective.

Data Sources:

• DoubleLine Funds Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results. Market share estimates are based on available data and may vary.