How Trend-Following ETFs Are Beating the Market
Hedge Funds vs. ETFs:
- Hedge funds traditionally for ultra-wealthy, but ETFs offer similar strategies to ordinary investors.
- ETFs are cost-effective, easily tradable, and tax-efficient vehicles.
Managed Futures ETFs:
- Replicate trades of computer-driven quant hedge funds (CTAs) using trend-following strategies.
- Standout performers in 2022 but underperformed in 2023.
Profitable Trends in 2023:
- Trend-following funds profited from bets on rising cocoa prices and falling Japanese yen.
- Cocoa futures nearly tripled, while the yen hit a 34-year low against the dollar.
Specific Managed Futures ETFs:
- iMGP DBi Managed Futures Strategy ETF DBMF: Over $1 billion in assets, long/short positions in derivatives.
- Simplify Managed Futures Strategy ETF CTA: Aims for absolute returns with low correlation to equities.
- Return Stacked U.S. Stocks & Managed Futures ETF RSST: Provides exposure to US stocks and managed futures strategy with leverage.
Additional Information:
- Zacks Investment Research provides insights on top-performing ETFs through their Fund Newsletter.
- Free reports available for iMGP DBi Managed Futures Strategy ETF (DBMF), Simplify Managed Futures Strategy ETF (CTA), and Return Stacked U.S. Stocks & Managed Futures ETF (RSST).
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Analyst Views on CTA
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Strategies for Navigating a Volatile Market Amid Rising Oil Prices and Falling Stocks
Market Concerns: The markets are experiencing a downturn due to escalating fears of a prolonged conflict in Iran.
Oil Price Impact: Investors are worried that rising oil prices could negatively affect the global economy and reignite inflation fears.
AI Trade Vulnerability: The situation poses particular challenges for the previously thriving artificial intelligence sector.
Investment Climate: Overall, it is becoming increasingly difficult for investors to find safe investment opportunities amid these uncertainties.
Simplify Launches New ETF Combining Stocks and Managed Futures — Could This Be the Key to Ultimate Diversification?
New ETF Launch: Simplify Asset Management has introduced the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP), aimed at providing long-term capital appreciation by combining U.S. large-cap equities with a managed futures strategy.
Investment Strategy: The ETF offers 100% exposure to large-cap U.S. stocks through a low-cost, market-cap-weighted allocation, while also incorporating a long/short managed futures strategy managed by Altis Partners.
Diversification Benefits: The strategy is designed to enhance portfolio resilience by leveraging the low correlation between stocks and managed futures, allowing investors to maintain equity exposure without additional capital allocation.
Market Positioning: CTAP is positioned as a tool for investors seeking a more robust portfolio structure that can potentially mitigate equity drawdowns while still participating fully in the stock market.
Managed Futures Strategy (CTA) Shares Fall Below 200-Day Moving Average
52 Week Range: CTA's stock has a low point of $26.10 and a high point of $30.213 over the past year, with the last trade recorded at $28.21.
Market Analysis: The article mentions that several other ETFs have recently fallen below their 200-day moving average, indicating potential market trends.
Author's Perspective: The views expressed in the article are solely those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Investment Insight: The information provided may be useful for investors looking to understand stock performance and market movements.
Should Investors Consider Defensive ETFs Amid Renewed Trump Tariff Threats?
Market Reaction to Tariff Threats: U.S. stocks experienced significant declines on October 10, 2025, following President Trump's threats of increased tariffs on Chinese goods, which he attributed to China's new restrictions on rare earth metals. The Dow Jones fell 1.9%, the S&P 500 dropped 2.71%, and the Nasdaq Composite saw a 3.56% decrease.
Investor Strategies Amidst Volatility: In response to market instability, investors are shifting towards long/short ETFs to seek profits and protection. Notable funds like the AGF U.S. Market Neutral Anti-Beta Fund and AdvisorShares Ranger Equity Bear ETF reported gains, contrasting with the overall market downturn.
Managed Futures Strategy (CTA) Shares Surpass 200-Day Moving Average
Current Stock Performance: CTA's stock has a 52-week low of $25.69 and a high of $30.213, with the last trade recorded at $28.02.
Market Analysis: The article references other ETFs that have recently surpassed their 200-day moving average.
Author's Perspective: The views expressed in the article are solely those of the author and do not necessarily represent Nasdaq, Inc.
Data Limitation: The information is based on data available up to October 2023.
CTA Crosses Above Key Moving Average Level
Current Stock Performance: CTA's stock has a 52-week low of $25.6601 and a high of $30.213, with the last trade recorded at $27.57.
Market Insights: The article mentions other ETFs that have recently crossed above their 200-day moving average, indicating potential market trends.
Strategies for Navigating a Volatile Market Amid Rising Oil Prices and Falling Stocks
Market Concerns: The markets are experiencing a downturn due to escalating fears of a prolonged conflict in Iran.
Oil Price Impact: Investors are worried that rising oil prices could negatively affect the global economy and reignite inflation fears.
AI Trade Vulnerability: The situation poses particular challenges for the previously thriving artificial intelligence sector.
Investment Climate: Overall, it is becoming increasingly difficult for investors to find safe investment opportunities amid these uncertainties.
Simplify Launches New ETF Combining Stocks and Managed Futures — Could This Be the Key to Ultimate Diversification?
New ETF Launch: Simplify Asset Management has introduced the Simplify US Equity PLUS Managed Futures Strategy ETF (CTAP), aimed at providing long-term capital appreciation by combining U.S. large-cap equities with a managed futures strategy.
Investment Strategy: The ETF offers 100% exposure to large-cap U.S. stocks through a low-cost, market-cap-weighted allocation, while also incorporating a long/short managed futures strategy managed by Altis Partners.
Diversification Benefits: The strategy is designed to enhance portfolio resilience by leveraging the low correlation between stocks and managed futures, allowing investors to maintain equity exposure without additional capital allocation.
Market Positioning: CTAP is positioned as a tool for investors seeking a more robust portfolio structure that can potentially mitigate equity drawdowns while still participating fully in the stock market.
Managed Futures Strategy (CTA) Shares Fall Below 200-Day Moving Average
52 Week Range: CTA's stock has a low point of $26.10 and a high point of $30.213 over the past year, with the last trade recorded at $28.21.
Market Analysis: The article mentions that several other ETFs have recently fallen below their 200-day moving average, indicating potential market trends.
Author's Perspective: The views expressed in the article are solely those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
Investment Insight: The information provided may be useful for investors looking to understand stock performance and market movements.
Should Investors Consider Defensive ETFs Amid Renewed Trump Tariff Threats?
Market Reaction to Tariff Threats: U.S. stocks experienced significant declines on October 10, 2025, following President Trump's threats of increased tariffs on Chinese goods, which he attributed to China's new restrictions on rare earth metals. The Dow Jones fell 1.9%, the S&P 500 dropped 2.71%, and the Nasdaq Composite saw a 3.56% decrease.
Investor Strategies Amidst Volatility: In response to market instability, investors are shifting towards long/short ETFs to seek profits and protection. Notable funds like the AGF U.S. Market Neutral Anti-Beta Fund and AdvisorShares Ranger Equity Bear ETF reported gains, contrasting with the overall market downturn.
Managed Futures Strategy (CTA) Shares Surpass 200-Day Moving Average
Current Stock Performance: CTA's stock has a 52-week low of $25.69 and a high of $30.213, with the last trade recorded at $28.02.
Market Analysis: The article references other ETFs that have recently surpassed their 200-day moving average.
Author's Perspective: The views expressed in the article are solely those of the author and do not necessarily represent Nasdaq, Inc.
Data Limitation: The information is based on data available up to October 2023.
CTA Crosses Above Key Moving Average Level
Current Stock Performance: CTA's stock has a 52-week low of $25.6601 and a high of $30.213, with the last trade recorded at $27.57.
Market Insights: The article mentions other ETFs that have recently crossed above their 200-day moving average, indicating potential market trends.
