In an interview with ETF Guide, DoubleLine Capital Portfolio Manager Samuel Lau discusses the DoubleLine Fortune 500 Equal Weight ETF (ticker symbol DFVE). Mr. Lau begins with DFVE, a stock strategy that he says should appeal to a broad variety of investors and advisors. These include “those who think that this runup in the largest-capitalized names, those Magnificent Sevens, the mega-cap names, might be starting to get a little bit stretched both in terms of valuation as well as weighting within the market cap-weighted indices.” Among aspects of DFVE, Samuel Lau discusses: Construction of the Barclays Fortune 500 Equal Weighted Total Return Index (or “the Underlying Index”), which DFVE seeks to track. Unlike equity indices that are weighted according to the market capitalizations of their component companies, the constituents of the Underlying Index are equally weighted after each annual reconstitution and quarterly rebalance. Diversification benefits of an equal-weighted equity investment strategy. Outperformance of the Barclays Fortune 500 Equal Weighted Total Return Index relative to the S&P 500 Equal Weighted Index since DFVE’s Underlying Index launched six years ago.
Mr. Lau joined DoubleLine in 2009. He is a Strategist on the Fixed Income Asset Allocation (FIAA) Committee and a contributing member on the Global Asset Allocation and Macro Committees. Mr. Lau is a Portfolio Manager on DoubleLine’s strategic commodity strategy while working in portfolio management and trading for derivatives-based and multi-asset strategies, including DoubleLine's Shiller Enhanced CAPE®, Shiller Enhanced International CAPE®, Real Estate and Income, and Multi-Asset Trend strategies. He also co-hosts the Sherman Show (Twitter @ShermanShowPod, ShermanShow@Doubleline.com) and Monday Morning Minutes (Twitter @DLineMinutes, Minutes@Doubleline.com) podcasts. Prior to DoubleLine, Mr. Lau was a Vice President at TCW where he worked under Jeffrey Gundlach as a Research Analyst in the Mortgage Group. He holds a B.S. from the University of Wisconsin, Madison and an MBA from the Marshall School of Business at the University of Southern California.
