DoubleLine Deputy CIO Jeffrey Sherman joins Bloomberg’s ETF IQ on July 21 to discuss the strategy and performance behind the DoubleLine Opportunistic Core Bond ETF (DBND). Since its 2022 launch, DBND has grown to nearly $500 million in assets, offering investors a diversified, actively managed fixed-income portfolio with a notable tilt toward mortgage-backed securities. Mr. Sherman explains the rationale behind the fund’s heavy allocation to mortgages – nearly half the portfolio – highlighting the attractive spreads and relative stability of government-backed assets in today’s market.
He dives into the evolving dynamics of the mortgage market, including the impact of reduced demand from banks and Federal Reserve, and how DBND capitalizes on seasoned and non-Agency mortgage opportunities to manage duration and volatility. Mr. Sherman also addresses broader macroeconomic themes, including the potential reprivatization of Fannie Mae and Freddie Mac, inflation trends and the uncertain path of Fed rate cuts. Through it all, DBND maintains a flexible, income-focused approach aimed at delivering consistent returns without taking excessive credit risk.
In a volatile rate environment, he emphasizes DBND’s strategic positioning – favoring short-duration credit and floating-rate debt to navigate uncertainty. With a current yield between 5.25% and 5.5% (30-day SEC yield: 4.78%), DBND offers investors a compelling option for income and stability. Whether rate cuts materialize or not, Mr. Sherman underscores the importance of balance and adaptability in portfolio construction, making DBND a standout choice for fixed income investors seeking resilience and opportunity.
Investing involves risk including the risk of principal loss.
For standardized performance and important information about this fund, please visit: https://doubleline.com/funds/opportun...
Link to the DoubleLine Opportunistic Core Bond ETF Prospectus: https://pex.broadridge.com/summary.as...
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.
