DoubleLine Shiller CAPE US Equities ETF’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze. The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy earns an Average Process Pillar rating.  High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Procter & Gamble

Berkshire Hathaway Inc. - Ordinary Shares - Class B

Costco

Alphabet

JPMorgan Chase & Co

Prologis

PepsiCo

Coca-Cola

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. DoubleLine Shiller CAPE US Equities ETF earns an Average Process Pillar rating. 

The leading factor in the rating is the firm's five-year retention rate of 92% over the period. Management team experience, which averages 24 years at this fund, also contributes to the process. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 25%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

 This strategy tends to pick smaller market-cap firms compared with the average fund in its peer group, the Large Blend Morningstar Category.  But in terms of investment style, it is on par with peers. Examining additional factor exposure, this strategy has held more highly liquid stocks compared to Morningstar Category Peers in the past few years. This gives the managers more flexibility during bear markets to sell without adversely affecting prices. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. The strategy has also had a defensive tilt, demonstrated by lower exposure to the quality factor than peers in recent years. This means the fund has avoided holding companies that are consistently profitable, growing, and have solid balance sheets. Such positions do not tend to provide much ballast for a portfolio. Similarly, in recent months, the strategy also had less exposure to the Quality factor than peers. In addition, this strategy's holdings have included more companies with high dividend or buyback yields than peers over these years. Stocks with high yields can be more stable, mature companies, but at times extreme market pressure or fundamental deterioration may prompt them to cut their dividends, which tends to hurt stock performance. In this month, the strategy also had more exposure to the Yield factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in real estate and basic materials relative to the category average by 21.5 and 19.3 percentage points, respectively. The sectors with low exposure compared to category peers are technology and healthcare, underweight the average by 27.2 and 13.3 percentage points of assets, respectively. The portfolio is composed of 198 holdings and is less top-heavy than peers. Specifically, 31.2% of the strategy's assets are concentrated within the top 10 fund holdings, as opposed to the typical peer's 48.8%. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 217% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Average

Process

DoubleLine Shiller CAPE US Equities ETF earns an Above Average People Pillar rating. Jeffrey E. Gundlach, the longest-tenured manager on the strategy, provides strong guidance, bringing forward over 25 years of listed portfolio management experience. The strategies they currently manage have an average Morningstar Rating of 2.7 stars, demonstrating disappointing risk-adjusted performance compared with category peers. Despite having a small team, the two listed managers boast 24 years of listed portfolio management experience. As a team, they manage 22 investment vehicles together, with an asset-weighted average Morningstar Medalist Rating of Neutral. This means, in aggregate, the team falls short and will struggle to produce positive alpha. The management team is invested in the fund, but the maximum investment by any manager is between $100,000 and $500,000. An investment of more than $1 million would be ideal to align managers' interests with those of the fund's investors.

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

Above Average

People

DoubleLine Capital is on solid footing, with a few areas to watch, supporting its Average Parent rating.
The firm has grown into a solid fixed-income shop since Jeffrey Gundlach launched it in 2009. The now 275-person firm counts managers and analysts who followed him from TCW. Of particular importance are portfolio managers Andrew Hsu and Ken Shinoda, who are likely to take the reins on firm flagship DoubleLine Total Return, which together with related strategies comprises half of the firm’s USD 96 billion in assets under management as of March 2023. An impressive team of analysts and traders supports the fund, which is a marquee example of the firm’s demonstrated expertise in managing securitized debt strategies.
That said, the firm’s success remains inextricably linked to Gundlach. Although he hasn’t been directly involved in trading for years and has a likely successor in deputy CIO Jeffrey Sherman, Gundlach’s experience, reputation, and influence mean his eventual departure could put money in play. On the heels of weak performance in 2019 and 2020, DoubleLine Total Return has seen USD 18 billion in outflows since January 2020 despite good returns in 2021 and 2022.
DoubleLine has added equity and multi-asset offerings and has branched into exchange-traded funds, which helps diversify the business. Not all endeavors have been successful, including the firm’s recently shut fundamental-equity business.

Parent

Doubleline Shiller Cape US Equities ETF

CAPE is an actively managed, non-transparent ETF that aims to outperform the S&P 500 Index by investing in US stocks of any size from the most undervalued sectors based on the CAPE ratio and momentum factors. The fund utilizes the Precidian non-transparent model.

American Century Focused Dynamic Growth ETF

FMC Excelsior Focus Equity ETF

Vanguard S&P 500 ETF

Vanguard Total Stock Market ETF

Active ETFs have gained in popularity in recent years. However, some pundits have prematurely taken out their shovels for some funds.

Semi-Transparent ETFs Are Alive and Well

Doubleline Opportunistic Bond ETF

DoubleLine Commercial Real Estate ETF

Doubleline Mortgage ETF

iShares Russell 1000 Value ETF

SPDR DoubleLine Total Return Tactical ETF

Just over a year ago, DoubleLine entered the ETF market and in May 2023 doubled its lineup. The new products tap into the prominent active management firm's expertise.

DoubleLine's ETF Lineup Doubled in Size

SPDR Bloomberg 1-3 Month T-Bill ETF

Capital Group Dividend Value ETF

Manager Directed Portfolios - iM DBi Managed Futures Strategy ETF

Horizon Kinetics Inflation Beneficiaries ETF

iShares Core S&P 500 ETF

Matthews Asia Innovators Active ETF

iShares 1-3 Year Treasury Bond ETF

AB Ultra Short Income ETF

There is a lot to be thankful for in the ETF industry in 2022 despite global equity and bond markets remaining under pressure from high inflation and the aggressive actions of central banks that could result in prolonged economic weakness.   U.S.-listed ETFs Already Gathered More Than $500 Billion in Assets.

Thankful Times in the ETF Industry

DoubleLine is one the many established asset managers that entered the ETF market in the past year. Like Neuberger Berman, the firm launched in April 2022 one equity and one fixed income ETF: The DoubleLine Schiller CAPE U.S. Equities ETF (CAPE) and the DoubleLine Opportunistic Bond ETF (DBND).

Meet a New ETF Provider: DoubleLine

Pacer Cash Cows Fund of Funds ETF

Invesco Global Listed Private Equity ETF

Barclays Bank PLC - ZC SP REDEEM 17/09/2024 USD 50 - GMTN Sr A

Global markets have rallied this year on return of the risk-on sentiments. However, rising rate worries caused occasional turmoil in the market in September.

5 Winning Global ETFs of First Nine Months of 2021

FlexShares STOXX US ESG Impact Index Fund

FlexShares STOXX Global ESG Select Index Fund

iPath Global Carbon ETN

iPath Bloomberg Agriculture Subindex Total Return ETN

iPath Bloomberg Copper Subindex Total Return ETN

iPath Bloomberg Nickel Subindex Total Return ETN

Amplify CrowdBureau Online Lending & Digital Banking ETF

Plus, some of the launches and other ETF actions that took place over the past two weeks.

ETF Odds & Ends: Bitcoin ETFs Put Off Again

Axs Change Finance ESG ETF

iShares Core Dividend Growth ETF

iShares U.S. Dividend & Buyback ETF

Invesco Russell 1000 Dynamic Multifactor ETF

First Trust Rising Dividend Achievers ETF

Schwab US Dividend Equity ETF

iShares MSCI USA ESG Select ETF

Invesco S&P 500 Top 50 ETF

If you're a long-term U.S. equity investor, a midcap ETF belongs in your portfolio.

Mighty Midcap ETFs

News for Doubleline Shiller Cape US Equities ETF ETF (CAPE)