A Comprehensive Analysis of DBND’s Three-Year Track Record
The DoubleLine Opportunistic Core Bond ETF (DBND) has been an actively managed exchange-traded fund on the NYSE Arca electronic exchange since its launch on March 31, 2022. Over the past three years, it has demonstrated exceptional performance, delivering an annualized return of 1.66% (based on net asset value) compared to its benchmark, the Bloomberg US Aggregate Bond Index, which produced an annualized return of 0.52%. Moreover, DBND outperformed the average annualized return of the Morningstar Intermediate Core-Plus Bond fund category, which was 0.92%. ### Performance Metrics
| Return Measures | DBND (Annualized Return) | Morningstar Fund Category Average (Annualized Return) | Benchmark (Bloomberg US Aggregate Bond Index, Annualized Return) |
|---|---|---|---|
| DBND (1.66% – 3 Years) | 0.92% (Morningstar Intermediate Core-Plus Bond Fund Category Average) | 0.52% (Bloomberg US Aggregate Bond Index) |
#### Active Management
The key to DBND’s success lies in its active management through DoubleLine’s Fixed Income Asset Allocation (FIAA) process. This process involves:
- Top-down sector allocation: The portfolio managers allocate assets to different sectors, such as government and corporate bonds, to achieve the desired investment objective.
- Management of duration: The portfolio managers manage the duration of the portfolio to mitigate interest rate risk.
- Bottom-up security selection: The portfolio managers select individual securities to maximize returns while minimizing risk.
- Credit analysis: The portfolio managers analyze the credit quality of the securities to ensure they are investing in high-quality bonds.
### Risk-Adjusted Performance
DBND’s performance can be measured using commonly used risk metrics, such as standard deviation and maximum drawdown. The results show that DBND delivered an annualized return superior to the Aggregate and the average of the Morningstar Intermediate Core-Plus Bond fund category, while also having less return volatility and a lower maximum drawdown. | | DBND | Morningstar Fund Category Average | Benchmark (Bloomberg US Aggregate Bond Index) |
| — | — | — | — |
| Standard Deviation | 7.08% | 7.51% | 7.67% |
| Maximum Drawdown | -8.92% | -10.77% | -10.40% |
#### Objective
The objective of DBND is to maximize current income and total return by investing at least 80% of its net assets in fixed income instruments or other investments with economic characteristics similar to fixed income instruments. The portfolio managers intend to construct an investment portfolio with an average effective duration of no less than two years and no more than eight years. #### Risk Disclosure
Investing in DBND involves risk and principal loss is possible. The Fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The statutory and summary prospectus contain this and other important information about the investment company, and may be obtained by calling (855) 937-0772, or visiting www.doubleline.com. #### Conclusion
In conclusion, DBND’s three-year track record demonstrates its ability to deliver exceptional performance while managing risk. The active management through DoubleLine’s Fixed Income Asset Allocation (FIAA) process has been key to negotiating the unfolding fixed income markets. As investors consider DBND for their portfolio, it is essential to carefully evaluate the investment objectives, risks, charges, and expenses before making a decision.
