Key Takeaways
- • Tuttle Capital Management has filed for the Tuttle Capital 2X DBMF ETF (ticker MFUT), a leveraged fund designed to deliver twice the daily returns of the $888 million iMGP DBi Managed Futures Strategy ETF (DBMF).
- • The proposed MFUT carries an expense ratio of 0.85% per its prospectus, matching DBMF's fee; both funds are actively managed.
- • DBMF was up 21.5% in 2022 according to Morningstar, one of the best-performing funds during a year when equities and bonds declined.
- • Founder Matthew Tuttle previously launched the AXS Short Innovation Daily ETF (SARK), which gained nearly 82% in 2022 but was down more than 31% as of Feb. 2, 2023, as ARKK rebounded more than 40%.
Summary
Tuttle Capital Management has filed for a leveraged exchange-traded fund that would provide twice the daily returns of the $888 million iMGP DBi Managed Futures Strategy ETF (DBMF), according to ETF.com. The proposed Tuttle Capital 2X DBMF ETF will trade under the ticker MFUT and carry an expense ratio of 0.85% per its prospectus, the same fee charged by DBMF. Both funds are actively managed.
DBMF seeks to mimic the performance of commodity trading advisor hedge funds and has broad latitude to take long or short positions in futures across equities, commodities and fixed income. The fund was up 21.5% in 2022 according to Morningstar, performing well in a year when most key asset classes were in negative territory. Its short positions helped cushion losses during that period. As of the article, DBMF held long positions in futures on the euro, the MSCI EAFE index, the MSCI Emerging Markets Index, WTI crude oil and gold, and short positions in futures on the yen, Treasury debt and the S&P 500. The long exposure to foreign equity futures reflects a broader market trend of investors shifting assets from U.S. equities into developed and emerging international equities.
Matthew Tuttle, founder of Tuttle Capital Management, previously launched the AXS Short Innovation Daily ETF (SARK), which shorts the ARK Innovation ETF (ARKK). SARK rose nearly 82% in 2022 while its reference asset fell almost 67%, but it has struggled in 2023, with ARKK up more than 40% and SARK down more than 31% as of Feb. 2. SARK and five other Tuttle-run ETFs were acquired by AXS Investments in 2022. Tuttle joined AXS briefly before parting ways several months later, and the article notes he continues to pursue a similarly edgy and innovative course.
DBMF seeks to mimic the performance of commodity trading advisor hedge funds and has broad latitude to take long or short positions in futures across equities, commodities and fixed income. The fund was up 21.5% in 2022 according to Morningstar, performing well in a year when most key asset classes were in negative territory. Its short positions helped cushion losses during that period. As of the article, DBMF held long positions in futures on the euro, the MSCI EAFE index, the MSCI Emerging Markets Index, WTI crude oil and gold, and short positions in futures on the yen, Treasury debt and the S&P 500. The long exposure to foreign equity futures reflects a broader market trend of investors shifting assets from U.S. equities into developed and emerging international equities.
Matthew Tuttle, founder of Tuttle Capital Management, previously launched the AXS Short Innovation Daily ETF (SARK), which shorts the ARK Innovation ETF (ARKK). SARK rose nearly 82% in 2022 while its reference asset fell almost 67%, but it has struggled in 2023, with ARKK up more than 40% and SARK down more than 31% as of Feb. 2. SARK and five other Tuttle-run ETFs were acquired by AXS Investments in 2022. Tuttle joined AXS briefly before parting ways several months later, and the article notes he continues to pursue a similarly edgy and innovative course.
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