Alternative investments are garnering renewed attention among advisors and investors that want more than equities and fixed income. As such, one of the oldest iterations of “alts” may be worth examining: managed futures.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| VI Vincent Incerto LaSalle St. Investment Advisors LLC | 14,875 | $345,248.75 | $326,803.75 | -$18,445 | -5.34% |
Joseph C. Gissy Tactive Advisors, LLC | 24,971 | $527,313.29 | $547,863.74 | $20,550.45 | 3.9% |
| ARCA Exchange | US Country |
A trend-following managed futures ETF (Exchange-Traded Fund) is designed to capitalize on market trends by investing in a diversified portfolio of underlying ETFs and futures contracts. This investment approach aims to generate alpha, which represents excess returns compared to market benchmarks, while exhibiting low expected correlation to traditional asset classes such as broad bond and equity markets. By utilizing a trend-following strategy, this ETF seeks to take advantage of varying market conditions, potentially offering investors an alternative source of returns in an ever-changing financial landscape.
This fund invests in a range of futures contracts and other financial instruments, attempting to capture upward trends in various markets. The managed futures approach enables investors to access markets that may otherwise be hard to reach, all while remaining focused on trend identification and execution.
By including a trend-following managed futures ETF in a portfolio, investors can achieve greater diversification. The low expected correlation to traditional equity and bond markets helps in mitigating risks associated with market downturns, providing a potential hedge during volatile periods.
This strategy emphasizes low correlation with broad equity and bond markets, allowing investors to pursue returns from diverse market conditions without the conventional risks tied to traditional asset classes. The expectation of low correlations may enhance overall portfolio performance.
The ETF provides investors with the ability to explore and gain exposure to alternative investment strategies through a single fund. This includes potential investments in commodities, currencies, and other assets that may not be available through traditional means.
A dedicated team of investment professionals manages the ETF, adjusting allocations and strategies based on market trends and insights. This active management approach aims to maximize returns and optimize risk-adjusted performance.