Gundlach to manage active ETF from State Street

SPDR DoubleLine Total Return Tactical exchange-traded fund to compete with Bill Gross' Total Return ETF.
JUN 16, 2014
State Street Corp. and Jeffrey Gundlach's DoubleLine Capital have teamed to open their first actively managed bond exchange-traded fund to compete with Bill Gross' Pimco Total Return ETF (BOND). SPDR DoubleLine Total Return Tactical ETF will invest in fixed-income securities and be run by Mr. Gundlach and Philip Barach, State Street said last Friday in a filing with the Securities and Exchange Commission. The fund, if approved, would list on the NYSE Arca exchange. (More: Miller: Gundlach's bearish housing position is wrong) Mr. Gross' Pacific Investment Management Co. has led the industry in developing actively managed bond ETFs, offering eight funds with $7.9 billion in assets, or about 61% of the market. The new offering from State Street would be the first ETF for DoubleLine, which manages about $49 billion in assets through mainly mutual funds and closed-end funds. “We've always been open to the idea of ETFs,” said Ronald Redell, president of DoubleLine Funds Trust. “State Street is the best in class among ETF providers.” Mr. Redell declined to comment on the fund's strategy, citing regulatory restrictions. The SPDR DoubleLine ETF will invest as much as 25% in corporate and sovereign high-yield debt, up to 15% in foreign-currency securities and a maximum of 25% in emerging markets, according to the filing. (Bloomberg News)

Latest News

SEC to lose Hester Peirce, deepening a commissioner crisis
SEC to lose Hester Peirce, deepening a commissioner crisis

The "Crypto Mom" departure would leave the SEC commission with just two members and no Democratic commissioners on the panel.

Florida B-D, RIA owner pitches bold long-term plan to sell to advisors
Florida B-D, RIA owner pitches bold long-term plan to sell to advisors

IFP Securities’ owner, Bill Hamm, has a long-term plan for the firm and its 279 financial advisors.

Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships
Fintech bytes: Vanilla, Wealth.com forge new estate planning partnerships

Meanwhile, a Osaic and Envestnet ink a new adaptive wealthtech partnership to better support the firm's 10,000-plus advisors, and RIA-focused VastAdvisor unveils native integrations with leading CRMs.

Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions
Fiduciary failure: Ex-advisor who sold practice fined after clients lost millions

A former Alabama investment advisor and ex-Kestra rep has been permanently barred and penalized after clients he promised to protect got caught in a $2.6 million fraud.

Why the evolution of ETFs is changing the due diligence equation
Why the evolution of ETFs is changing the due diligence equation

As more active strategies get packaged into the ETF wrapper, advisors and investors have to look beyond expense ratios as the benchmark for value.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management