Managed Futures

Managed futures mutual funds and ETFs invest the majority of their assets... Managed futures mutual funds and ETFs invest the majority of their assets in financial futures contracts. These are essentially bets on the direction of financial assets, and can include currencies, stock markets, bond markets, commodity prices, and volatility. Typically, these funds can play different markets at one time, attempting to capture upside or downside momentum in the most attractive asset class at any given moment. These funds are trend-followers by nature, and use chart-based technical analysis to guide buying and selling decisions. They also employ technology to inform their trading decisions. These funds can deliver outsized returns to investors, but their use of leverage can expose a fund to significant risks. If a fund takes a large position (long or short) and sees a market go against it, they can lose a substantial amount of their capital. As a result, these funds are only appropriate for aggressive investors with a high risk tolerance. Last Updated: 12/26/2024 View more View less

Managed futures mutual funds and ETFs invest the majority of their assets in financial futures contracts. These are essentially bets on the direction of financial assets, and can include currencies, stock markets, bond... Managed futures mutual funds and ETFs invest the majority of their assets in financial futures contracts. These are essentially bets on the direction of financial assets, and can include currencies, stock markets, bond markets, commodity prices, and volatility. Typically, these funds can play different markets at one time, attempting to capture upside or downside momentum in the most attractive asset class at any given moment. These funds are trend-followers by nature, and use chart-based technical analysis to guide buying and selling decisions. They also employ technology to inform their trading decisions. These funds can deliver outsized returns to investors, but their use of leverage can expose a fund to significant risks. If a fund takes a large position (long or short) and sees a market go against it, they can lose a substantial amount of their capital. As a result, these funds are only appropriate for aggressive investors with a high risk tolerance. Last Updated: 12/26/2024 View more View less