New Bond ETF From SPDR

Another niche ETF is on the way, this time from a partnership between SPDR ETFs and DoubleLine Capital, a Los Angeles-based firm with $64 billion under management. The SPDR DoubleLine Total Return Tactical ETF TOTL invests in traditional and non-traditional fixed-income sectors with a goal of providing returns in a number of market environments.

TOTL Management

The ETF will be managed by bond expert Jeffrey Gundlach, DoubleLine's CEO. James Ross, executive vice president and global head of SPDR ETFs at State Street Global Advisors is excited about the two companies partnership as he stated, "DoubleLine obviously brings a history and proven track record of delivering superior risk-adjusted returns."

Related Link: Deutsche AWM Launches 3 New Interest-Rate, Hedged-Bond ETFs

TOTL Profile

TOTL is allocated across eight fixed-income sectors with mortgage-backed securities at 56 percent, bank loans at 11 percent and emerging markets making up 10.5 percent being the most heavily weighted sectors. In terms of credit quality and maturity, almost half of the securities have a rating of Aaa, while 42 percent mature between 20 and 30 years and 14 percent have a maturity of between three and five years.

As many people believe that the bull market is nearing its end, fixed income ETFs such as TOTL are becoming more and more popular. While it may be more difficult to make money in bonds, investors are willing to pay for a bond ETF that is actively managed by a well-known professional.