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What Are Managed Futures

Managed Futures are an investment vehicle that have grown dramatically in popularity due to their ability to add diversification to an overall investment portfolio and their potential to lower portfolio risk, all with practically a zero correlation with stocks. Managed Futures have been utilized by investors for more than 35 years. Within the last decade, assets under management have grown 700%, reaching more than $200 billion under management by the end of 2007.

The Main Advantages Of Managed Futures: 

-Their ability to potentially add balanced diversification to an overall investment portfolio

-Their potential to lower portfolio risk

-Virtually zero correlation with stocks and traditional asset classes


These funds are traded via futures and options on the commodities markets. Profits, as well as losses, may be experienced in both bull and bear markets as you may go long and short in over 150 global markets. With the ability to profit in rising and falling markets, managed futures offer the serious investor a unique opportunity to capitalize on the current market climate while maintaining sufficient diversification.

The utilization of negative correlation between asset groups is a key to managed future’s diversification. The assets traded in managed futures may be selected to achieve inverse correlation to stocks, bonds, and other financial instruments. As an example, utilizing a managed futures program that trades in metals such as gold, silver and copper in a market marked by significant inflation may provide a hedge against portfolio erosion of a portfolio allocated solely to stocks and bonds during the same time period. They have the ability to potentially perform in market conditions where stocks and bonds have traditionally yielded poor returns. Utilizing these funds as an amalgamation may maximize diversification, may optimize overall investment performance, and may potentially lower the volatility of the portfolio overall.

Review our complimentary webinars and performance comparison on Managed Futures below:

Intro to Managed Futures Webinar

Ten Compelling Reasons Webinar

      Comparison of Performance

Managed futures may not necessarily be profitable under all market conditions and also may not necessarily reduce volatility. All of the data in the videos and images above should be considered as a whole per video, and not in part, as individual statements within the videos. There is significant risk of loss in investing in managed futures. Past performance of any studies, charts, graphs, or results within the videos or images above do not indicate futures results, and may not be indicative of current time periods or current market environments . Any CTA indicies referenced within the videos or images above may have reporting limitations, may not represent the universe of CTA’s, and real results may vary considerably per any individual or group of CTA programs. You may not likely invest directly into a CTA index and should review the individual results of a CTA program before investing. Additionally, the volatility representation of any CTA Index may not represent the potential volatile nature of any individual CTA program.