DoubleLine Mortgage ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The strategy earns an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in corporate bonds and A rated bonds compared with category peers. The strategy’s management team earns an Average People Pillar rating. 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

Morningstar's style-agnostic evaluation of this fund's process seeks to understand whether the strategy has a performance objective and sensible, repeatable execution. Doubleline Mortgage 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 18 years at this fund, also bolsters 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 outperformed 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.

 Compared with other funds in the Intermediate Core Bond Morningstar Category, this fund takes on significantly lower credit risk. But in terms of long-term interest-rate sensitivity, it hews closely to its average peer over the past few years. Opening the analysis to additional factors, the portfolio has displayed biases over time, whether towards or away from certain fixed-income instruments. Relative to the category average, the managers have been significantly underweight corporate bonds in recent years. In the latest month, the strategy has also relatively underweighted corporate bonds compared with Morningstar Category peers. Additionally, there's been a notable underallocation from A rated bonds over the past few years. Similarly, in recent months, the strategy also had less exposure to A rated bonds than peers. Finally, during the past few years, the fund leaned meaningfully away from debt with 10- to 15-year maturities. In recent months, the strategy also had less exposure to debt with 10- to 15-year maturities compared to its peers.

  The portfolio holds assets with a higher average surveyed credit quality of AAA, compared with the typical peers' A, and it holds no non-investment-grade assets, despite the average peers' 1%. Lower-credit-risk strategies are often able to navigate bear markets more effectively.

Average

Process

Doubleline Mortgage ETF earns an Average People Pillar rating. The team is backed by Jeffrey E. Gundlach, the longest-tenured manager on the strategy, who brings over 25 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 2.7 stars, reflecting below-average risk-adjusted performance versus category peers. Jeffrey E. Gundlach has an experienced backdrop of support. The three listed managers boast 18 years of average listed portfolio management experience.  

 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.

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 Mortgage ETF

DMBS is an actively managed portfolio of investment grade residential mortgage-backed securities of any maturity. The fund seeks to outperform the Bloomberg US Mortgage-Backed Securities Index.

DoubleLine Commercial Real Estate ETF

iShares 1-3 Year Treasury Bond ETF

iShares 20+ Year Treasury Bond ETF

Investors starved for yield since the great financial crisis can now have it merely by holding cash reserves. At least for now (as of November 8), the U.S. three-month Treasury Bill was yielding 5.4%, up from 0.50% at the end of 2021 and 4.4% at the end of last year.

Is Cash Trash? DoubleLine Has Some Thoughts

Doubleline Shiller Cape US Equities ETF

Doubleline Opportunistic Bond 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

The launches come during a troubling time for the real estate industry.

Gundlach's DoubleLine Launches 2 Real Estate ETFs

DoubleLine has launched two actively managed fixed income ETFs, the DoubleLine Mortgage ETF (NYSE Arca: DMBS) and the DoubleLine Commercial Real Estate ETF (NYSE Arca: DCMB), on the NYSE Arca Exchange. DMBS seeks a total return that exceeds that of the Bloomberg US Mortgage-Backed Securities Index over a full market cycle.

DoubleLine Launches DMBS and DCMB ETFs

TAMPA, Fla., April 4, 2023 /PRNewswire/ -- The DoubleLine Mortgage ETF (Symbol: DMBS) and the DoubleLine Commercial Real Estate ETF (DCMB), exchange-traded funds invested in fixed income securities actively managed by DoubleLine, began trading today on the NYSE Arca exchange.

News for Doubleline Mortgage ETF ETF (DMBS)