The fund follows an actively managed multi-sector income strategy that diversifies across several bond sectors. It aims to generate a steady stream of interest income by allocating among Treasuries, investment-grade corporate bonds, and mortgage-backed and asset-backed securities as conditions warrant.

It suits medium- to long-term investors who want regular income and bond diversification, and who trust the management team's active sector allocation.

It is an actively managed ETF run by Doubleline.

The fund does not track a specific index. Instead, the management team allocates assets at its discretion across fixed-income sectors such as Treasuries, corporate bonds, mortgage bonds and asset-backed securities. It adjusts sector weights and duration in response to changes in the interest rate and credit environment, seeking a balance between income and total return.

• Active allocation across multiple bond sectors
• Aims to distribute income monthly

Assets under management (AUM) are $107.4M, and the expense ratio is 0.50% per year.

Its fees are on the higher side compared with passive core ETFs in the same bond income category, but its ability to respond to changing market conditions through active sector allocation sets it apart.

As with bond ETFs generally, performance depends heavily on the direction of interest rates and changes in credit spreads. Bond prices tend to come under pressure when rates rise and to benefit when rates fall, so recent trends are sensitive to monetary policy expectations.

In an environment of steady demand for income, interest in multi-sector bond products continues. Active bond ETFs tend to attract capital from investors who expect active management to respond well during periods of high rate uncertainty.

Its strengths are active allocation across several bond sectors and its monthly income orientation. Its weaknesses are the fee burden that comes with active management and its exposure to interest rate and credit risk.

BINC, PYLD and others shown in the table are direct comparisons within the same active multi-sector bond category, and core-plus bond ETFs such as JCPB can also be considered. Investors who want broad US bond exposure can look at low-cost core ETFs such as AGG and BND, while those who want international bond diversification can consider products such as BNDX. If you need high-yield exposure with a stronger income profile, HYG is also worth considering.

Here are the points to review before investing in DMX. Because it is an active bond ETF, it is wise to check in advance its expense level, duration (a measure of interest rate sensitivity), credit exposure to corporate and lower-rated bonds, and the frequency and nature of its income distributions.

Rising interest rates and wider credit spreads are the main risk factors that weigh on bond prices. Even with active management, losses are hard to avoid when the broader bond market is weak.

It is a suitable choice for investors who want active allocation across several bond sectors and monthly income. To reduce cost burden, consider low-cost core bond ETFs such as AGG and BND, and if you value active management, consider DMX.