Doubleline ETF Trust - DoubleLine Commercial Real Estate ETF (DCRE)

Overview

The DoubleLine Commercial Real Estate ETF (DCRE) is an actively managed ETF that seeks to provide total return by investing primarily in commercial mortgage-backed securities (CMBS) and other commercial real estate-related debt instruments.

Reputation and Reliability

DoubleLine Capital is a well-regarded investment management firm known for its expertise in fixed income, particularly mortgage-backed securities.

Management Expertise

DoubleLine's management team has extensive experience in fixed income and commercial real estate markets, providing confidence in their ability to navigate the complexities of the sector.

Goal

The ETF seeks to maximize total return, consisting of income and capital appreciation, by investing in commercial real estate-related debt instruments.

Investment Approach and Strategy

Strategy: DCRE is actively managed, allowing the fund managers to select securities based on their assessment of value and potential for total return.

Composition The ETF primarily invests in CMBS, but may also include other commercial real estate debt instruments such as REIT debt and other asset-backed securities.

Market Share: DCRE's market share in the commercial real estate debt ETF sector is relatively small compared to larger, more established competitors.

Total Net Assets (AUM): 26000000

Key Competitors

• iShares CMBS ETF (CMBS)
• VanEck Mortgage REIT Income ETF (MORT)

Competitive Landscape

The commercial real estate debt ETF market is competitive, with several established players offering similar exposures. DCRE's active management strategy differentiates it from passive index trackers. However, this also introduces additional risk if the management team underperforms. DCRE faces disadvantages due to its lower AUM, higher expense ratio compared to CMBS and MORT.

Historical Performance: Historical performance data should be obtained from official fund documentation and financial data providers.

Benchmark Comparison: The ETF's performance should be compared to benchmarks like the Bloomberg Barclays US CMBS Index.

Expense Ratio: 0.5

Average Trading Volume

DCRE's average trading volume is moderate, which could impact the ease of buying or selling large positions.

Bid-Ask Spread

The bid-ask spread may vary depending on market conditions, affecting the cost of trading the ETF.

Market Environment Factors

Economic growth, interest rate movements, and the health of the commercial real estate market are significant factors affecting DCRE.

Growth Trajectory

Growth is tied to interest rate and macroeconomic conditions, with performance varying due to active management.

Competitive Edge

DCRE's primary competitive advantage is its active management strategy, allowing for flexible allocation to different areas within the commercial real estate debt market. This flexibility enables the fund managers to potentially outperform passive benchmarks by capitalizing on market inefficiencies and identifying undervalued securities. Furthermore, DoubleLine's fixed income expertise provides a strong foundation for credit analysis and risk management. This expertise may allow the fund to achieve better risk-adjusted returns compared to passively managed competitors. However, active management relies heavily on the expertise of the fund managers.

Volatility

DCRE's volatility is influenced by interest rate sensitivity and credit risk associated with CMBS and other commercial real estate debt.

Market Risk

Risks include changes in interest rates, credit spreads, and the overall health of the commercial real estate market, which can impact the value of the underlying securities.

Ideal Investor Profile

The ideal investor is one seeking income and diversification through exposure to commercial real estate debt, while understanding the risks associated with actively managed strategies.

Market Risk

DCRE may be suitable for investors seeking income, diversification within fixed income, and who are comfortable with the risks of active management.

The DoubleLine Commercial Real Estate ETF (DCRE) is an actively managed fund providing exposure to commercial real estate debt through CMBS and other related instruments. It aims for total return, relying on DoubleLine's expertise in fixed income and active management to outperform benchmarks. The ETF's performance depends heavily on the skill of the fund managers and prevailing market conditions. DCRE might appeal to investors seeking diversification and income in the commercial real estate sector, but should be approached with an understanding of its active nature and associated risks. Despite Doubleline's solid fixed income management, DCRE's small AUM and higher expense ratio make it less attractive than larger competitors.

Data Sources:

• DoubleLine Capital
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investment decisions should be made based on your own research and consultation with a qualified financial advisor. Market share data is estimated and may vary.