DoubleLine Total Return: A Tactical Bond Bet

09/13/2017 2:55 am EST

Focus: STOCKS

Walter Frank

CIO, MONEYLETTER

We often recommend bond fund allocations as a key diversification and risk-management tool; our latest idea is the the SPDR DoubleLine Total Return Tactical ETF (TOTL), notes Walter Frank, editor of MoneyLetter.


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Since bonds have a low correlation with the stock market, they often prove a stable haven in times of stock market turbulence. And they provide yields above what can be earned in cash.

Our bond fund recommendations fall in the short, intermediate, intermediate government, and bank loan categories.


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The SPDR DoubleLine Total Return Tactical ETF is an actively managed ETF. The fund aims to best the Bloomberg Barclays U.S. Aggregate Bond Index by “exploiting mispriced areas of the bond market” as well as investing in other bond sectors including high yield and emerging markets.

It employs active sector and security selection. More than two-thirds of assets are invested in AAA-rated debt, with mortgage-backed securities the largest sector at 52% of assets. Treasuries are next at 16.6%.

The majority of this fund’s holdings (68.33%) are AAA-rated and above. The fund has a current dividend yield of 2.99%, paid monthly.

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