Jeffrey Sherman, Deputy Chief Investment Officer at DoubleLine Capital, discusses the DoubleLine Fortune 500 Equal Weight ETF (DFVE). The Fortune 500 is an annual list published by Fortune since 1955, ranking the top 500 companies domiciled in the U.S. based on revenue. DFVE has an investable universe of 450 individual stocks, about 120 of which are not in the S&P 500. This approach allows for a different selection of securities that span the overall US economy, providing a complement to other strategies. Unlike most market indices that are market capitalization weighted, the Fortune 500 equally weighted index assigns an equal amount of capital to each security within the index. The advantage of an equally weighted index is that it helps to mitigate distortions caused by dominant large-cap companies, which receive the highest allocation in market-cap-weighted portfolios. Historically, the largest names do not always dominate, making a diversified portfolio beneficial.
Link to the DoubleLine Fortune 500 Equal Weight Prospectus
DoubleLine ETFs are distributed by Foreside Fund Services, LLC.
Jeffrey Sherman, DoubleLine’s Deputy Chief Investment Officer, is a thought leader, portfolio manager and public speaker in the industry. Mr. Sherman is a member of DoubleLine’s Fixed Income and Global Asset Allocation committees, and he serves as lead portfolio manager for the firm’s multi-sector and derivative-based strategies. In his role, Mr. Sherman guides the investment teams in developing top-down macro views and collaborative asset allocation processes throughout a market cycle. Additionally, he is a member of DoubleLine’s Executive Management Committee. In 2018, Money Management Executive named Mr. Sherman as one of “10 Fund Managers to Watch” in its yearly special report. Prior to joining DoubleLine in 2009, Mr. Sherman was a Senior Vice President at TCW, where he worked as a portfolio manager and quantitative analyst focused on fixed income and real-asset portfolios. Prior to that, he was a statistics and mathematics instructor at the University of the Pacific and Florida State University. Mr. Sherman taught Quantitative Methods for Level I candidates in the USC/CFALA CFA® Review Program for many years. He holds a B.S. in Applied Mathematics from the University of the Pacific and an M.S. in Financial Engineering from Claremont Graduate University. Mr. Sherman is a CFA® charterholder.
