Key Takeaways
- • DBMF (iMGP DBi Managed Futures Strategy ETF) and IALT (iShares Systematic Alternatives Active ETF) are the two largest alternatives ETFs by AUM, at roughly $5 billion and $7.8 billion respectively, according to ETF Database.
- • IALT gathered more than $7 billion in AUM this year after launching in December of the prior year, and has returned 14% year to date.
- • DBMF, which charges an 85 basis point fee, has grown its AUM by almost $3 billion since the start of the year and returned 14.1% year to date.
- • Both funds outperformed the ETF Database Hedge Fund category average of 6.1% as of November 11.
- • The article suggests the pair may merit consideration as a small but notable satellite allocation in portfolios.
Summary
Two actively managed alternatives ETFs, the iMGP DBi Managed Futures Strategy ETF (DBMF) and the iShares Systematic Alternatives Active ETF (IALT), have emerged as the largest funds in the segment by assets under management, according to an ETF Database analysis. DBMF holds about $5 billion in assets and charges an 85 basis point fee. IALT holds $7.8 billion.
DBMF recently crossed the $5 billion threshold and has added almost $3 billion in AUM since the start of the year, per ETF Database data. The fund seeks to emulate the performance of a set of commodity trading advisor (CTA) hedge funds, allocating weights to derivatives chosen by its managers. It uses long and short positions in futures and forwards across asset classes. The fund returned 14.1% year to date.
IALT, which launched in December of the prior year, has seen its AUM increase by more than $7 billion this year. The fund invests actively in developed and emerging markets using quantitative models and proprietary ranking. It seeks long-term returns in equities and fixed income, as well as commodities and currencies, and looks for mispriced opportunities across market capitalization and credit quality. It may use derivatives based on its managers' views. The article reports a 14% year-to-date return for the fund.
Both ETFs outperformed the ETF Database Hedge Fund category average, which stood at 6.1% as of November 11. The article argues that the funds' active strategies and ETF structure may support durable performance in uncertain conditions, and suggests they may be worth monitoring for a satellite allocation in portfolios.
DBMF recently crossed the $5 billion threshold and has added almost $3 billion in AUM since the start of the year, per ETF Database data. The fund seeks to emulate the performance of a set of commodity trading advisor (CTA) hedge funds, allocating weights to derivatives chosen by its managers. It uses long and short positions in futures and forwards across asset classes. The fund returned 14.1% year to date.
IALT, which launched in December of the prior year, has seen its AUM increase by more than $7 billion this year. The fund invests actively in developed and emerging markets using quantitative models and proprietary ranking. It seeks long-term returns in equities and fixed income, as well as commodities and currencies, and looks for mispriced opportunities across market capitalization and credit quality. It may use derivatives based on its managers' views. The article reports a 14% year-to-date return for the fund.
Both ETFs outperformed the ETF Database Hedge Fund category average, which stood at 6.1% as of November 11. The article argues that the funds' active strategies and ETF structure may support durable performance in uncertain conditions, and suggests they may be worth monitoring for a satellite allocation in portfolios.
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