TAMPA, Fla., Feb. 1, 2024 /PRNewswire/ -- The DoubleLine Fortune 500 Equal Weight ETF (ticker symbol DFVE) and the DoubleLine Commodity Strategy ETF (DCMT) began trading today on the NYSE Arca exchange.

DoubleLine Logo (PRNewsfoto/DoubleLine)

For the prospectus for the two exchange-traded funds, please click on the following link: https://doubleline.com/wp-content/uploads/DoubleLine-ETF-Prospectus-DCMT-DFVE.pdf

The launches of the DoubleLine Fortune 500 Equal Weight ETF and the DoubleLine Commodity Strategy ETF bring to six the number of DoubleLine ETFs. The other four exchange-traded funds are the DoubleLine Shiller CAPE U.S. Equities ETF1, the DoubleLine Opportunistic Bond ETF, the DoubleLine Mortgage ETF and the DoubleLine Commercial Real Estate ETF. For more information on the DoubleLine ETFs, please visit the following page: https://doubleline.com/doubleline-exchange-traded-funds/

DoubleLine Fortune 500 Equal Weight ETF

The investment objective of the DoubleLine Fortune 500 Equal Weight ETF (the "Fund" or "DFVE") is to seek to track the investment results (before fees and expenses) of the Barclays Fortune 500 Equal Weighted Total Return Index (or the "Underlying Index"). Unlike most equity indices, which are weighted according to the market capitalizations of their component companies, the constituents of the Underlying Index are equally weighted, which means that the Underlying Index assigns each constituent the same weight at each annual reconstitution and quarterly rebalance, regardless of such constituent's market capitalization.

DFVE under normal circumstances will invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in securities that comprise the Underlying Index, or derivatives transactions that provide investment exposure to the Underlying Index or securities that comprise the Underlying Index. DFVE will not necessarily employ a "full replication" methodology in seeking to track the Underlying Index, meaning that the Fund will not necessarily invest in all of the securities comprising the Underlying Index in proportion to their weightings in the Underlying Index. Instead, DFVE's investment adviser, DoubleLine ETF Adviser LP, may seek to cause DFVE to hold a representative sample of the securities in the Underlying Index that have aggregate characteristics similar to that of the entire Underlying Index.

The portfolio managers of DFVE are Jeffrey Gundlach, CEO and Chief Investment Officer of DoubleLine, and Jeffrey Sherman, Deputy Chief Investment Officer of DoubleLine.

DoubleLine Commodity Strategy ETF

The investment objective of the DoubleLine Commodity Strategy ETF (the "Fund" or "DCMT") is to seek total return (capital appreciation and current income). DCMT expects to gain broad commodity exposures consistent with the Barclays Backwardation Tilt Multi-Strategy Index (the "Barclays Index") by entering

into total and excess return swaps, futures contracts, options on futures and/or forward contracts the performance of which is based on the performance of the Barclays Index.

Within its broad commodity universe, the Barclays Index, which consists of futures contracts, generally favors maintaining higher weightings to commodities that exhibit backwardation in the term structures of their futures contracts (i.e., where prices of the contracts with shorter-term expirations will be higher than for contracts with longer-term expirations). For each commodity, the Barclays Index seeks to provide exposure to the most attractive futures contract (i.e., contract selection) based on a variety of factors including carry, seasonality, and momentum:

  • The carry factor seeks to select the futures contract that is expected to offer the best carry for the following month ("carry" refers to the relative performance of futures tenors driven by the convergence of futures prices to spot prices at expiration) ("tenor" refers to the length of time remaining before a futures contract expires and "spot" refers to the price at which a commodity can be bought or sold for immediate delivery).

  • The seasonality factor seeks to provide exposure to a static December futures tenor that may generally outperform a position held in the front-month futures tenor.

  • The momentum factor seeks to provide exposure to the futures contract that has outperformed to the greatest degree the front-month contract rolling exposure over the past year.

The Barclays Index seeks to capture two sources of potential outperformance in commodity futures markets. The first source of potential outperformance comes through selecting, for each relevant commodity, the eligible futures contract that is expected to offer the best outperformance relative to the front-month contract rolling exposure used by the Bloomberg Commodity Index. This is achieved through the use of certain futures contract selection methodologies referred to together as "Multi-Strategy." These Multi-Strategy methodologies select a futures contract for each commodity that may differ from the futures contract selected by the Bloomberg Commodity Index, based on the factors described above including carry, seasonality and momentum. The second source of potential outperformance comes through overweighting (relative to the weightings in the Bloomberg Commodity Index) the exposure of the Barclays Index to the futures contracts of commodities that exhibit the highest degree of backwardation in the term structures of their futures contracts, while simultaneously underweighting the exposure to the futures contracts of commodities that exhibit a lower degree of backwardation. Historically, the commodities with a higher degree of backwardation have generally had better historical average performance than the commodities with a lower degree of backwardation.

DCMT expects to obtain its commodities exposures using derivatives that allow the Fund to achieve those exposures without significant investment of cash. As a result, DCMT expects to have available cash assets to invest in debt securities managed by DCMT's investment adviser, DoubleLine Alternatives LP ("DoubleLine Alternatives"), in order to seek to provide additional total return over a full market cycle. Under normal circumstances, the Fund's portfolio of fixed income investments is expected to include primarily fixed income instruments rated investment grade and unrated securities considered by DoubleLine Alternatives to be of comparable credit quality.

The portfolio managers of DCMT are Jeffrey Sherman, Samuel Lau and Jeffrey Mayberry.

About DoubleLine

DoubleLine ETF Adviser LP, adviser to the DoubleLine Fortune 500 Equal Weight ETF, is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine Alternatives LP, adviser to the DoubleLine Commodity Strategy ETF, is an investment adviser registered under the Investment Advisers Act of 1940. DoubleLine's offices can be reached by telephone at (813) 791-7333 or by email at ETFinfo@doubleline.com. Media can reach DoubleLine by email at media@doubleline.com. DoubleLine® is a registered trademark of DoubleLine Capital LP.

A fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The statutory prospectus and summary prospectus (if available) contain this and other important information about the fund and may be obtained by clicking here. In addition, a free hard copy is available by calling (855) 937-0772. Please read the prospectus carefully before investing.
Risk Disclosures 
Investing involves risk. Principal loss is possible. Equities may decline in value due to both real and perceived general market, economic and industry conditions.

ETF investments involve additional risks such as the market price trading at a discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a fund's ability to sell its shares.

Investments in commodities or commodity related instruments may subject to  the Fund to greater risks and volatility as commodity prices may be influenced by a variety of factors including unfavorable weather, environmental factors, and changes in government regulations.   The Fund may use leverage which may cause the effect of an increase or decrease in the value of the portfolio securities to be magnified and the Fund to be more volatile than if leverage was not used.   Derivatives involve special risks including correlation, counterparty, liquidity, operational, accounting and tax risks. Investments in debt securities typically decrease in value when interest rates rise.  This risk is usually greater for longer-term debt securities.   

The Funds are a "non-diversified" investment company and therefore may invest a greater percentage of its assets in the securities of a single issuer or a limited number of issuers than funds that are "diversified." Accordingly, the Funds are more susceptible to risks associated with a single economic, political or regulatory occurrence than a diversified fund might be.

DoubleLine ETFs are distributed by Foreside Fund Services, LLC.

Barclays Bank PLC Disclaimer 
Barclays Bank PLC and its affiliates ("Barclays") is not the issuer, sponsor or promoter of the DoubleLine Commodity Strategy ETF or the DoubleLine Fortune 500 Equal Weight ETF (in this paragraph, each a "Fund") and Barclays has no responsibilities, obligations or duties to investors in the Funds. The Barclays Backwardation Tilt Multi-Strategy Index and the Barclays Fortune 500 Equal Weighted Total Return Index (each an "Index") consist of the respective trademarks of Barclays Bank PLC and trademarks owned by or licensed to Barclays Bank PLC and that are licensed for use by the DoubleLine ETF Trust as the Issuer of the Funds. Barclays' only relationship with the Issuer in respect of the Indices is the licensing of these trademarks and the Indices which are determined, composed and calculated by Barclays without regard to the Issuer or the Funds or the owners of the Funds. Additionally, DoubleLine Alternatives LP or DoubleLine ETF Adviser LP may for any Fund execute transaction(s) with Barclays in or relating to the respective Fund's Index and investors neither acquire any interest in that Fund's Index nor enter into any relationship of any kind whatsoever with Barclays upon making an investment in the Fund. The Funds are not sponsored, endorsed, sold or promoted by Barclays. Barclays does not make any representation or warranty, express or implied regarding the advisability of investing in the Funds or the advisability of investing in securities generally or the ability of any Index to track corresponding or relative market performance. Barclays has not passed on the legality or suitability of the Funds' names or the Indices with respect to any person or entity. Barclays is not responsible for and has not participated in the determination of the timing of, prices of, or quantities of the shares of the Funds to be issued. Barclays has no obligation to take the needs of the Issuer or the owners of the Funds or any other third party into consideration in determining, composing or calculating the Indices. Barclays has no obligation or liability in connection with administration, marketing or trading of the Funds. The licensing agreement between DoubleLine ETF Trust and Barclays is solely for the benefit of the Funds and Barclays and not for the benefit of the owners of the Funds, investors or other third parties.

Bloomberg Disclaimer
"Bloomberg®" and "Bloomberg Commodities IndexSM" are service marks of Bloomberg Finance L.P. and its affiliates, including Bloomberg Index Services Limited ("BISL"), the administrator of the indices (collectively, "Bloomberg") and have been licensed for use for certain purposes by Barclays Bank PLC ("Barclays").

The Commodity Strategy ETF is not sponsored, endorsed, sold or promoted by Bloomberg. Bloomberg does not make any representation or warranty, express or implied, to the owners of or counterparties to the Commodity Strategy ETF or any member of the public regarding the advisability of investing in securities or commodities generally or in the Commodity Strategy ETF particularly. The only relationship of Bloomberg to the Licensee is the licensing of certain trademarks, trade names and service marks and of the Bloomberg Commodities IndexSM, which is determined, composed and calculated by BISL without regard to Barclays or the Commodity Strategy ETF. Bloomberg has no obligation to take the needs of Barclays or the owners of the Commodity Strategy ETF into consideration in determining, composing or calculating Bloomberg Commodities IndexSM. Bloomberg is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of shares of the Commodity Strategy ETF to be issued or in the determination or calculation of the equation by which shares of the Commodity Strategy ETF are to be converted into cash. Bloomberg shall not have any obligation or liability, including, without limitation, to Commodity Strategy ETF customers, in connection with the administration, marketing or trading of the Commodity Strategy ETF.

Fortune Disclaimer 
Fortune and Fortune 500 are registered trademarks of Fortune Media IP limited ("Fortune IP", together with its affiliate Fortune Media (U.S.A) corporation, the "Fortune Group") used under license. Fortune Group is not affiliated with and does not endorse products or services of Barclays Bank PLC or DoubleLine. Fortune Group and Fortune are not investment advisors or broker dealers and do not guarantee the adequacy, accuracy, timeliness and/or the completeness of the Fortune indices or any data related thereto or any communication (including but not limited to, oral or written communication (including electronic communications)) with respect thereto. Neither Fortune Group nor Fortune shall be subject to any damages or liability for any errors, omissions, or delays therein. Fortune Group and Fortune make no warranties, express or implied, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use or as to results to be obtained by Barclays Bank plc, DoubleLine, owners of the securities, or any other person or entity from the use of the Fortune indices or with respect to any data related thereto. Without limiting any of the foregoing, in no event whatsoever shall Fortune Group or Fortune be liable for any indirect, special, incidental, punitive, or consequential damages including but not limited to, loss of profits, trading losses, lost time or goodwill, even if they have been advised of the possibility of such damages, whether in contract, tort, strict liability, or otherwise. There are no third-party beneficiaries of any agreements or arrangements between Fortune Group and Fortune and Barclays Bank plc, other than as the licensees of Fortune Group.

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1
 This ETF is different from traditional ETFs.  Traditional ETFs tell the public what assets they hold each day. This ETF will not. This may create additional risks for your investment. For example: 

  • You may have to pay more money to trade the ETF's shares. This ETF will provide less information to traders, who tend to charge more for trades when they have less information.
  • The price you pay to buy ETF shares on an exchange may not match the value of the ETF's portfolio. The same is true when you sell shares. These price differences may be greater for this ETF compared to other ETFs because it provides less information to traders.
  • These additional risks may be even greater in bad or uncertain market conditions.

The differences between this ETF and other ETFs may also have advantages. By keeping certain information about the ETF secret, this ETF may face less risk that other traders can predict or copy its investment strategy. This may improve the ETF's performance. If other traders are able to copy or predict the ETF's investment strategy, however, this may hurt the ETF's performance.

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SOURCE DoubleLine

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