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.
