Weakness in DoubleLine Commodity Strategy ETF's Process and People Pillar ratings limits this strategy to a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy merits a Below Average Process Pillar rating. The strategy suffers from its inexperienced portfolio management team. This largely drives the strategy's Below Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Morningstar's evaluation of this fund's process seeks to determine how repeatable, consistent, and reliable it is, and whether management maintains a competitive advantage. DoubleLine Commodity Strategy ETF earns a Below Average Process Pillar rating. The process benefits from the firm's five-year retention rate of 92% over the period. However, the rating is limited by the parent firm's five-year risk-adjusted success ratio of 28%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup. Management team experience, which averages four years at this fund, also weakens the process.

The investment strategy as stated in the fund's prospectus is as follows: 

 The investment seeks total return.  The fund is an actively managed ETF. The fund normally seeks to generate total return over a full market cycle through long exposures to commodity-related investments. The commodities to which the Advisor expects to have investment exposure principally include, without limitation, industrial metals; precious metals; oil, gas and other energy commodities; agricultural products and livestock.

Below Average

Process

DoubleLine Commodity Strategy ETF earns a Below Average People Pillar rating. The team benefits from the firm's five-year retention rate of 92%. However, the rating is limited by the parent firm's five-year success ratio of 24%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup. Management team experience, which averages four years at this fund, also weakens the team.


None of the portfolio managers here invest in this fund. This hurts the rating because manager investment would align their interests with the strategy's investors.

People

DoubleLine Capital is on solid footing, with a few areas to watch, supporting its Average Parent rating.
The firm has grown into a solid fixed-income shop since Jeffrey Gundlach launched it in 2009. The now 275-person firm counts managers and analysts who followed him from TCW. Of particular importance are portfolio managers Andrew Hsu and Ken Shinoda, who are likely to take the reins on firm flagship DoubleLine Total Return, which together with related strategies comprises half of the firm’s USD 96 billion in assets under management as of March 2023. An impressive team of analysts and traders supports the fund, which is a marquee example of the firm’s demonstrated expertise in managing securitized debt strategies.
That said, the firm’s success remains inextricably linked to Gundlach. Although he hasn’t been directly involved in trading for years and has a likely successor in deputy CIO Jeffrey Sherman, Gundlach’s experience, reputation, and influence mean his eventual departure could put money in play. On the heels of weak performance in 2019 and 2020, DoubleLine Total Return has seen USD 18 billion in outflows since January 2020 despite good returns in 2021 and 2022.
DoubleLine has added equity and multi-asset offerings and has branched into exchange-traded funds, which helps diversify the business. Not all endeavors have been successful, including the firm’s recently shut fundamental-equity business.

Average

Parent

DoubleLine Commodity Strategy ETF

DCMT provides broad commodity exposure through an actively managed portfolio of commodity-linked derivative instruments. The fund seeks total returns throughout an entire market cycle.

Doubleline Fortune 500 Equal Weight ETF

TAMPA, Fla. , Feb. 1, 2024 /PRNewswire/ -- The DoubleLine Fortune 500 Equal Weight ETF (ticker symbol DFVE) and the DoubleLine Commodity Strategy ETF (DCMT) began trading today on the NYSE Arca exchange.

News for DoubleLine Commodity Strategy ETF ETF (DCMT)