In this episode of Advisorpedia’s Power Your Advice, DoubleLine’s Andrew Hsu joins host Doug Heikkinen to discuss the launch of the first actively managed ETF dedicated entirely to asset-backed securities (ABS), DoubleLine’s DABS. Mr. Hsu explains why ABS – long favored by institutional investors for their low correlation to the broad fixed income market, healthy yield and resilience – are now more accessible to a broader audience. He breaks down the difference between consumer and commercial ABS, the fund’s current positioning, and how DABS aims to deliver income and capital appreciation through a diversified, actively managed portfolio.
Mr. Hsu also shares how DABS fits into an investment strategy, offering potential benefits like enhanced yield, downside protection and exposure to sectors often overlooked in traditional fixed-income portfolios.
00:00 – Introduction 01:14 - Why DoubleLine Launched the DABS ETF 02:45 - What Makes DABS Different from Other Fixed Income ETFs 03:37 - What Is an ABS? Consumer vs. Commercial Explained 06:10 - Why ABS Offers a Yield Premium 07:57 - DABS Strategy: Income, Diversification & Downside Protection 10:40 - Portfolio Construction, Credit Risk & Active Management 17:53 - Trends in ABS & Opportunities Ahead
Investing involves risk including the risk of principal loss.
For Important Information about this fund, please click here
Link to the Asset-Backed Securities ETF Prospectus
DoubleLine ETFs are distributed by Foreside Fund Services, LLC.
Mr. Hsu joined DoubleLine at its inception in 2009. He is a Portfolio Manager for the DoubleLine Total Return and ABS/Infrastructure Income strategies. Mr. Hsu is a permanent member of the Fixed Income Asset Allocation and Structured Products Committees. Prior to that, he was responsible for analysis and trading of structured products, where his focus included residential MBS and ABS transactions. Mr. Hsu’s responsibilities have also included structuring and negotiating terms on new-issue transactions and forming strategic partnerships with issuing entities in order to participate in key transactions. Prior to DoubleLine, he worked at TCW from 2002, where he focused on credit analysis for structured product securities and co-managed two structured product funds centered on debt and equity investments. During that time, Mr. Hsu was actively involved with portfolio management decisions and investment analysis, including reverse engineering complex CDO/CLO structures. He holds a BS in Finance from the University of Southern California and is a CFA® charterholder.
