In the world of bond investing, there are two superstars: Bill Gross of PIMCO and Jeffrey Gundlach of DoubleLine. Of late, Gundlach has been getting more of the spotlight with his on-target market predictions, ranging from the fall of Apple’s stock price to the rise of Japan’s Nikkei stock market index.
On June 4th, Gundlach announced his firm will be opening its floating rate fund to the public. With fewer than 10 funds in DoubleLine's fund lineup, the announcement indicates that they believe this asset class represents an opportunity for investors.
What makes floating rate debt interesting?
Which funds should you invest in?
We think the world of DoubleLine. Their Floating Rate Fund, which will be open to investment on July 1st, has no load and a reasonable annual expense ratio. However, the fund has not been around for long and has no rating from Morningstar. If you’re more comfortable investing in a floating rate fund with an established track record, the DWS Floating Rate Fund is our top pick. The fund is rated 4 stars by Learn Bonds and has a total return of 8.12 percent over the last year and 6.07 percent over the last five. There is no load and a 0.96 percent annual expense ratio.
David Waring is co-founder of bond education website Learn Bonds. If you've watched a YouTube video on technical analysis or forex trading, you have probably seen one of the over 100 videos that he produced. His trading education videos have been streamed over 6 million times and counting.