Key Takeaways
- • Investor interest in managed futures ETFs has grown amid rising stock market volatility and higher correlations between stocks and bonds, according to Zacks Investment Research.
- • Managed futures ETFs give individual investors exposure to futures across commodities, currencies, equities and bonds using systematic trend-following strategies that can go long or short.
- • Proponents cite diversification, potential crisis alpha and inflation hedging, but the strategies can underperform in choppy, directionless markets where trends reverse frequently.
- • Three funds are named: iMGP DBi Managed Futures Strategy ETF (DBMF), KFA Mount Lucas Index Strategy ETF (KMLM) and Fidelity Managed Futures ETF (FFUT).
Summary
Investor interest in managed futures products has increased amid rising stock market volatility and higher correlations between stocks and bonds, according to a Zacks Investment Research article published October 28, 2026. The strategies drew attention in 2022, when many of them rose as both stocks and bonds fell sharply.
Managed futures ETFs provide exposure to futures contracts across commodities, currencies, stocks and bonds. The funds use systematic strategies to identify market trends and adjust positions accordingly, going long when prices rise and short when prices fall, which allows them to potentially profit in both rising and falling markets. The article notes that these ETFs offer individual investors access to approaches traditionally used by Commodity Trading Advisors (CTAs), many of which rely on quantitative, trend-following models. Zacks points out that CTAs are not limited to commodities, and that large institutional investors, including major pension funds, have allocated to managed futures for decades.
Zacks identifies three main attractions: portfolio diversification relative to traditional stock and bond holdings; crisis alpha, as these strategies have historically performed well during certain periods of market stress, particularly when stocks and bonds decline together; and a potential hedge against inflation and rising interest rates, depending on positioning across commodities, bonds and other futures. The article cautions that performance depends on market conditions and that these funds can struggle in choppy, directionless markets.
The article profiles three funds. The iMGP DBi Managed Futures Strategy ETF (DBMF) takes long and short positions in futures and forward contracts across equities, fixed income, currencies and commodities. The KFA Mount Lucas Index Strategy ETF (KMLM) tracks an index of long and short managed futures contracts on 11 commodities, 6 currencies and 5 global bond markets. The Fidelity Managed Futures ETF (FFUT) seeks to profit from price trends across equity, fixed income, currency and commodity markets, with the iShares Core S&P 500 ETF (IVV), NVIDIA (NVDA) and Microsoft (MSFT) among its top holdings.
The source page is a Globe and Mail quote page for the iShares Core S&P 500 ETF, and the article is syndicated third-party content that The Globe and Mail has not reviewed.
Managed futures ETFs provide exposure to futures contracts across commodities, currencies, stocks and bonds. The funds use systematic strategies to identify market trends and adjust positions accordingly, going long when prices rise and short when prices fall, which allows them to potentially profit in both rising and falling markets. The article notes that these ETFs offer individual investors access to approaches traditionally used by Commodity Trading Advisors (CTAs), many of which rely on quantitative, trend-following models. Zacks points out that CTAs are not limited to commodities, and that large institutional investors, including major pension funds, have allocated to managed futures for decades.
Zacks identifies three main attractions: portfolio diversification relative to traditional stock and bond holdings; crisis alpha, as these strategies have historically performed well during certain periods of market stress, particularly when stocks and bonds decline together; and a potential hedge against inflation and rising interest rates, depending on positioning across commodities, bonds and other futures. The article cautions that performance depends on market conditions and that these funds can struggle in choppy, directionless markets.
The article profiles three funds. The iMGP DBi Managed Futures Strategy ETF (DBMF) takes long and short positions in futures and forward contracts across equities, fixed income, currencies and commodities. The KFA Mount Lucas Index Strategy ETF (KMLM) tracks an index of long and short managed futures contracts on 11 commodities, 6 currencies and 5 global bond markets. The Fidelity Managed Futures ETF (FFUT) seeks to profit from price trends across equity, fixed income, currency and commodity markets, with the iShares Core S&P 500 ETF (IVV), NVIDIA (NVDA) and Microsoft (MSFT) among its top holdings.
The source page is a Globe and Mail quote page for the iShares Core S&P 500 ETF, and the article is syndicated third-party content that The Globe and Mail has not reviewed.
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