The Tampa-headquartered money management firm DoubleLine has announced the launch of two exchange-traded funds (ETFs) focused on the real estate sector.
The DoubleLine Mortgage ETF (NYSE Arca: DMBS) invests primarily in high-quality residential mortgage-backed securities (RMBS), allocating between government-backed agency mortgage-backed securities (MBS) and non-agency MBS. Interest rate, credit and prepayment risks are managed with the goal of delivering enhanced risk-adjusted returns through changing interest-rate and economic environments.
While the Mortgage ETF intends to invest primarily in residential mortgage securities deemed to be rated investment grade (i.e., securities rated Baa3/BBB- or higher) at the time of purchase, the Fund may also invest in certain other fixed income securities, including derivatives, U.S. government securities, and other cash and cash equivalents.
The Portfolio managers of the Mortgage ETF are Jeffrey Gundlach, founder, CEO and chief investment officer of DoubleLine; Vitaliy Liberman, portfolio manager overseeing DoubleLine’s agency MBS team; and Ken Shinoda, chairman of the firm’s Structured Products Committee and portfolio manager overseeing the non-Agency RMBS team.
The DoubleLine Commercial Real Estate ETF (NYSE Arca: DCMB) invests in senior commercial real estate debt through investment grade commercial mortgage-backed securities (CMBS) and employs active management through security selection across commercial real estate (CRE) property types and subsectors while maintaining a low level of interest rate risk.
The CMBS and CRE Debt team expects to invest the Commercial Real Estate ETF primarily in instruments rated AAA to A- by S&P, at the time of purchase, or the equivalent by any other nationally recognized statistical rating organization. Under normal market conditions, the portfolio managers intend to seek to construct an investment portfolio with a dollar-weighted average effective duration of three years or less.
The portfolio managers of the Commercial Real Estate ETF are Morris Chen, who heads DoubleLine’s CMBS and CRE debt team; Mark Cho, portfolio manager responsible for the team’s CMBS credit platform; and Robert Stanbrook, portfolio manager responsible for the team’s CRE loan platform as well as its investments in CRE collateralized loan obligations.
“We are pleased to deliver these two unique exchange-traded funds to the marketplace as DoubleLine continues to broaden our ETF offerings to our valued clients,” said DoubleLine President Ron Redell.