Industry veteran State Street launched its new SPDR DoubleLine Total Return Tactical ETF (TOTL ). Also this week, two industry newcomers made their ETF debut.
The SPDR DoubleLine Total Return Tactical ETF
On Monday, State Street launched its SPDR DoubleLine Total Return Tactical ETF (TOTL ). In partnership with DoubleLine Capital Partner, the actively managed fund offers investors exposure to a proprietary fixed income strategy, which seeks to maximize total return over a full market cycle by actively investing across global fixed income sectors.
TOTL will be actively managed by DoubleLine through a top-down macroeconomic process, allocating capital among different fixed income sectors, with bottom-up security selection. The fund will combine traditional fixed income investment sectors of the Barclays US Aggregate Bond Index and fixed income asset classes outside of the index with the goal of maximizing total return over a full market cycle through active sector allocation and security selection.
TOTL’s portfolio currently holds a modified adjusted duration of 3.06 years. The average maturity and coupon are 13.5 years and 4.21%, respectively. The fund charges an expense ratio of 0.55%.
Lattice Strategies Makes ETF Debut
San Francisco-based Lattice Strategies made its ETF debut with the launch of three new products, each of which track “risk-optimized” indexes.
The Emerging Markets Strategy ETF (ROAM ) seeks to generate returns and improve risk efficiency in emerging markets through the systematic re-allocation of risks commonly found in capitalization-weighted indexes and similarly benchmarked active approaches. ROAM charges an expense ratio of 0.65%.
The Developed Markets (ex-US) Strategy ETF (RODM ) follows a similar re-allocation strategy, but focuses on developed, ex-U.S. equities. RODM will invest in securities located in major developed markets of Europe, Canada and the Pacific Region. The fund charges an expense ratio of 0.50%.
The US Equity Strategy ETF (ROUS ) also utilizes a dynamic allocation strategy, focusing on publicly traded U.S. equity securities. The fund aims to reduce capital concentrations in mega-cap multi-national companies and emphasizes companies with a favorable combination of diversified risk premia characteristics. ROUS charges an expense ratio of 0.35%.
Tuttle Tactical Joins ETF Industry
Connecticut-based Tuttle Tactical Management launched its first ETF on Wednesday. The Tuttle Tactical Management U.S. Core ETF (TUTT ) is an actively-managed fund that seeks long-term capital appreciation while maintaining a secondary emphasis on capital preservation, primarily through investments in the U.S. equity market. TUTT is a “fund of funds,” meaning it invests in other exchange traded funds to obtain its investment objective.
The investment philosophy behind TUTT focuses on the following three principles:
- Markets move in recognizable short and intermediate-term trends and countertrends;
- Over the intermediate term, strong asset classes tend to stay strong, while weak asset classes tend to continue in weakness; and
- Over the shorter term, markets are dominated by media noise, fear and similar short-term disruptions and concerns.
In addition, the fund will focus on four tactical models, which include momentum, relative strength, beta, and counter trend strategies. TUTT charges an expense ratio of 1.34%.
Be sure to also read Controlling Risk with ETFs.
Other ETF News
Also this week, Hartford Funds announced that it has entered into a preliminary agreement with Navigate Fund Solutions LLC, a subsidiary of Eaton Vance Corp., to support the launch by Hartford Funds of a family of NextShares exchange-traded managed funds. Be sure to check out this article to learn more about Eaton Vance’s new “non transparent” ETFs.
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Disclosure: No positions at time of writing.
