Doubleline Etf Trust - Mortgage ETF (DMBS)

Overview

The DoubleLine Mortgage ETF (DSL) is an actively managed ETF that focuses on mortgage-backed securities (MBS). It aims to provide a high level of current income by investing primarily in agency MBS, but also includes exposure to non-agency MBS and other debt securities.

Reputation and Reliability

DoubleLine Capital is a well-regarded investment firm known for its expertise in fixed income and mortgage-backed securities. They have a strong track record in managing fixed-income portfolios.

Management Expertise

The fund is managed by experienced professionals at DoubleLine Capital with extensive knowledge of the mortgage market and fixed income investments.

Goal

To seek a high level of current income.

Investment Approach and Strategy

Strategy: Actively managed ETF focusing on mortgage-backed securities.

Composition Primarily invests in agency mortgage-backed securities (MBS), with some allocation to non-agency MBS and other debt securities.

Market Share: DSL's market share within the mortgage ETF sector is relatively small compared to larger, more established ETFs.

Total Net Assets (AUM): 196787816.47

Key Competitors

• iShares MBS ETF (MBB)
• Vanguard Mortgage-Backed Securities ETF (VMBS)
• SPDR Portfolio Aggregate Bond ETF (SPAB)

Competitive Landscape

The mortgage ETF market is dominated by large issuers like iShares and Vanguard. DSL competes by offering active management and potentially higher yields but faces the challenge of attracting assets away from these established passive ETFs. DSLu2019s active management provides a potential advantage in navigating complex market conditions, but its higher expense ratio is a disadvantage.

Historical Performance: Past performance is not indicative of future results. Review DSL's historical returns over various periods (e.g., 1-year, 3-year, 5-year) to assess its performance track record.

Benchmark Comparison: Compare DSL's performance against relevant benchmarks like the Bloomberg Barclays U.S. Mortgage Backed Securities Index to assess its effectiveness in generating returns.

Expense Ratio: 0.35

Average Trading Volume

DSL's average trading volume is moderate, which is typical for smaller, actively managed ETFs.

Bid-Ask Spread

The bid-ask spread for DSL can vary depending on market conditions and trading volume, but it is generally wider than more liquid, passively managed ETFs.

Market Environment Factors

DSL's performance is influenced by factors such as interest rate movements, changes in mortgage rates, and overall economic conditions. These factors affect the value and attractiveness of mortgage-backed securities.

Growth Trajectory

DSL's growth depends on its ability to attract assets and generate competitive returns. Its active management strategy and focus on mortgage-backed securities can be attractive to investors seeking higher income potential.

Competitive Edge

DSL differentiates itself through active management, leveraging DoubleLine's expertise in fixed income and mortgage-backed securities. This allows the fund to potentially generate higher returns by actively selecting and managing its MBS portfolio. The active approach enables DoubleLine to adjust the portfolio based on market conditions and credit risk, offering a potential advantage over passive mortgage ETFs. Furthermore, DoubleLine's reputation for fixed-income management can attract investors seeking specialized expertise.

Volatility

DSL's volatility is influenced by interest rate sensitivity and credit risk associated with its underlying mortgage-backed securities.

Market Risk

DSL is exposed to market risk related to changes in interest rates, prepayment risk, and credit risk associated with mortgage-backed securities. Rising interest rates can negatively impact MBS values, while prepayment risk can reduce future income.

Ideal Investor Profile

DSL is suitable for investors seeking current income and exposure to the mortgage market. Investors with a moderate risk tolerance and understanding of fixed income instruments may find DSL appealing.

Market Risk

DSL may be suitable for long-term investors seeking income and diversification within their fixed income portfolio. It is not necessarily designed for active traders but can be a strategic holding for income-focused strategies.

The DoubleLine Mortgage ETF (DSL) is an actively managed ETF that focuses on mortgage-backed securities, aiming to provide a high level of current income. It is managed by DoubleLine Capital, known for its fixed-income expertise. While its market share is smaller compared to larger, passive mortgage ETFs, DSL offers active management and the potential for higher yields. Investors should consider its expense ratio, liquidity, and the risks associated with mortgage-backed securities when evaluating DSL. It is suitable for income-seeking investors with a moderate risk tolerance and understanding of fixed-income markets.

Data Sources:

• DoubleLine Funds Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a financial advisor. Past performance is not indicative of future results.