Hedge funds typically cater to ultra-wealthy investors; however, many ETFs now offer ordinary investors access to similar strategies through cost-effective, easily tradable, and tax-efficient vehicles.
Managed futures ETFs aim to replicate the trades of computer-driven, market trend-following quant hedge funds, also known as Commodity Trading Advisors (CTAs), who have utilized trend-following strategies for decades.
These ETFs were standout performers in 2022—a year that was brutal for almost all major asset classes—but they underperformed in 2023.
According to the Financial Times, this year has been enormously profitable for trend-following funds, largely thanks to their successful bets on soaring cocoa prices and a sinking Japanese yen. Cocoa futures have almost tripled in the past year, while the yen has recently plunged to its 34-year low against the dollar.
The iMGP DBi Managed Futures Strategy ETF DBMF takes long and short positions in derivatives, primarily in futures contracts and forward contracts, across equities, fixed income, currencies, and commodities. The fund has accumulated over $1 billion in assets.
The Simplify Managed Futures Strategy ETF CTA aims to generate absolute returns independent of market direction, with a low correlation to equities. It follows a long/short managed futures strategy, investing across US and Canadian commodities and rates.
The Return Stacked U.S. Stocks & Managed Futures ETF RSST seeks to provide simultaneous exposure to US stocks and a managed futures strategy, utilizing leverage.
To learn more about these ETFs, please watch the short video above.
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Get it free >>iMGP DBi Managed Futures Strategy ETF (DBMF): ETF Research Reports
Simplify Managed Futures Strategy ETF (CTA): ETF Research Reports
Return Stacked U.S. Stocks & Managed Futures ETF (RSST): ETF Research Reports
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