Achievements of DoubleLine ETF in Its First Three Years
DoubleLine ETF Celebrates Three Years of Performance
The DoubleLine Opportunistic Core Bond ETF (ticker symbol DBND) has reached a significant milestone, marking its three-year anniversary since its launch. As an actively managed exchange-traded fund, DBND has demonstrated notable achievements in its journey within the financial markets.
DBND's Impressive Return Compared to Benchmarks
During the three-year period ending March 31, 2025, the fund delivered an annualized return of 1.66% based on net asset value. This performance stands out particularly when compared to its benchmark, the Bloomberg US Aggregate Bond Index, which yielded an annualized return of just 0.52%. Additionally, the average annualized return for its Morningstar category, Intermediate Core-Plus Bond, was 0.92%. Not only did DBND outperform these benchmarks, but it did so with reduced risk, as indicated by its lower return volatility and maximum drawdown metrics.
Fund Performance Metrics
To provide clarity on its performance, here’s a summary of DBND’s metrics over its first three years and quarter:
- 1-Month Return: DBND (Market): -0.03%; DBND (NAV): -0.03%
- 1-Year Return: DBND (Market): 5.87%; DBND (NAV): 5.89%
- 3-Year Return: DBND (Market): 1.70%; DBND (NAV): 1.66%
- Gross Expense Ratio: 0.45%
These statistics highlight that not only was DBND able to sustain its performance but also keep its expenses manageable.
Active Management Strategy
Jeffrey Sherman, Deputy Chief Investment Officer at DoubleLine, credits the active management approach of their Fixed Income Asset Allocation (FIAA) process as a vital aspect in navigating the dynamic fixed-income markets. This strategy encompasses both top-down sector allocation and rigorous security selection. As of March 31, 2025, the fund's asset allocation was composed of 48.5% government securities, primarily U.S. Treasuries and Agency mortgage-backed securities, alongside 51.5% in credit instruments.
Enhancements in Credit Quality
Over the past two years, the investment team has enhanced the credit quality of their portfolio. For instance, adjustments have been made to increase holding in government-backed securities while strategically selling down credit exposure. This demonstrates a thoughtful evolution in DBND's investment strategy to seek safer and potentially more fruitful opportunities.
Measuring Risk-Adjusted Performance
DBND's performance demonstrates its adeptness not just at generating returns but also in managing risk effectively. With a standard deviation of 7.08% against its category's 7.51% and a maximum drawdown of -8.92% against -10.77%, DBND exhibits a well-rounded capability in today's turbulent markets.
Fund Objective and Investment Strategy
The primary goal of DBND is to maximize current income along with total returns by maintaining a strong focus of investing at least 80% of its net assets in fixed income investments. This flexibility allows for investments across various credit qualities, enabling the fund to capture opportunities across the global fixed-income landscape.
DoubleLine’s ETF Portfolio
DBND is part of an extensive lineup of ETFs managed by DoubleLine ETF Adviser LP. The suite includes several specialized funds addressing different segments, such as U.S. equities and asset-backed securities, showcasing DoubleLine's commitment to diversification and innovation in fund management.
Frequently Asked Questions
What is DBND?
DBND is the DoubleLine Opportunistic Core Bond ETF designed for maximizing current income and total returns through active management strategies.
How has DBND performed against benchmarks?
DBND has delivered an annualized return of 1.66% compared to its benchmark, the Bloomberg US Aggregate Bond Index, which returned 0.52%.
What is the role of active management for DBND?
Active management helps navigate complex market conditions, enhancing the fund's ability to optimize returns while managing risk effectively.
How do the fund metrics compare to its category?
DBND exhibits lower return volatility and maximum drawdown compared to its Morningstar category, indicating superior risk management.
What is DoubleLine's commitment in fund management?
DoubleLine is dedicated to innovative fund management across various asset classes with an emphasis on risk-adjusted returns.
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