ETF Report: DoubleLine Opportunistic Credit Fund (DBL)

What this ETF is trying to do

The DoubleLine Opportunistic Credit Fund (DBL) is an exchange-traded fund (ETF) traded on the NYSE. While the specific investment strategy is not detailed in the provided data, it is categorized as an ETF that focuses on credit.

What the numbers show

When looking at this ETF, it is important to understand the difference between "price return" and "total return." Price return only tracks how much the share price changes. Total return includes both the price change and the money paid out to investors through distributions.

• Year-to-Date (YTD): The price return is approximately -10.49%. However, the YTD total return is approximately -4.16%.

• One Year: The one-year price return is approximately -12.05%. The one-year total return is approximately -3.79%.

• Three Years: The three-year price return is approximately -6.06%. Interestingly, the three-year total return is approximately 22.07%.

To visualize the price change, an investor's share price was estimated to be roughly $15.52 one year ago. The current price is $13.65.

Income and distribution explanation

This ETF has a distribution yield of approximately 9.67%. This means the fund pays out cash relative to its share price. The trailing distributions are $1.32. These payments usually happen monthly, with the most recent 12 payments occurring on Wednesdays.

It is important to remember that a high distribution yield does not mean an investor earned that same percentage as their total return. While distributions provide cash income, they do not guarantee that the value of your original investment will stay the same.

NAV erosion explanation

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's assets). While a falling share price is not the same thing as NAV erosion, we use "erosion scores" to measure risk. This ETF has an erosion score of 75, which is labeled as "mild price erosion." There is no severe erosion-risk flag for this fund.

Pros

• The fund offers a high distribution yield of approximately 9.67%.

• Over a three-year period, the total return was positive at approximately 22.07%, even though the share price itself declined.

Cons

• The fund has experienced a share-price decline over the last year and year-to-date.

• The fund shows signs of mild price erosion.

Beginner takeaway

For new investors, the main lesson here is to look at both price return and total return. A fund's share price might go down, but the total return can look very different if the fund is paying out significant cash through distributions. Always remember that high yields come with risks regarding the stability of your principal investment.