(DCPE) DoubleLine Shiller CAPE US - Overview

DoubleLine Shiller CAPE US Equities ETF (NYSE ARCA: DCPE) is a U.S.-focused, large-blend fund that tracks the Shiller Cyclically-Adjusted Price-Earnings (CAPE) index, a valuation metric that smooths earnings over ten years to filter out short-term volatility. The ETF’s stated goal is to provide exposure to equities that appear undervalued relative to historical earnings multiples, thereby aiming for long-run capital appreciation.

Key quantitative details (as of the latest filing) include an expense ratio of roughly 0.55%, assets under management around $210 million, and an average dividend yield of about 1.8%. The portfolio is weighted toward sectors that historically exhibit lower cyclicality-such as consumer staples and health care-while maintaining a modest tilt to technology, reflecting the broader market composition of the underlying Shiller CAPE index. Because the CAPE methodology is sensitive to long-term earnings trends, macro-drivers like U.S. GDP growth, real interest rates, and inflation expectations are especially relevant to the fund’s performance.

Assumption: the fund’s holdings continue to track the Shiller CAPE index without significant drift; uncertainty: if the predictive power of CAPE weakens in a regime of persistently low rates, the ETF could underperform relative to a standard market-cap weighted index. A disconfirming signal would be a sustained divergence between CAPE-based valuations and realized earnings growth, which would merit a reassessment of the strategy.

For deeper quantitative insights, you might explore ValueRay’s toolkit to compare DCPE’s valuation metrics against peers.