Managed futures ETFs give ordinary investors access to a systematic trend-following strategy that trades futures across commodities, currencies, and interest rates. They package what used to require a hedge fund into a single exchange-traded fund.
What are managed futures ETFs?
These funds run a rules-based trend-following model across futures markets. The idea is simple and old: when a market is trending, the model takes a position in the direction of the trend, long or short. Because futures can be shorted as easily as bought, the strategy can profit in falling markets too. That gives managed futures their main selling point: returns that are largely uncorrelated with the stock market.
The main funds
| Fund | Ticker | Expense ratio | Approach |
|---|---|---|---|
| iMGP DBi Managed Futures Strategy | DBMF | 0.85% | Replicates a broad CTA index |
| KraneShares Mount Lucas Managed Futures | KMLM | 0.90% | Directly tracks a trend-following index |
| Simplify Managed Futures Strategy | CTA | 0.76% | Dynamic long/short across futures |
Expense ratios as of August 2026. Verify current fees before investing.
How they differ from equity trend ETFs
An equity trend ETF like PTLC follows one stock index and moves to cash when the trend breaks. A managed futures ETF trades many markets at once and can go short, so it is not just a stock strategy with a filter. That broader, long/short mandate is what produces the low correlation investors buy them for. See trend following ETFs for the equity side of the same idea.
What to compare before you choose
- Expense ratio. Managed futures ETFs run 0.76% to 0.90%, which is high by index-fund standards. It is the price of an actively run futures book.
- Markets traded. Some track a broad basket of commodities, currencies and rates; others tilt toward certain markets. The mix shapes how the fund behaves.
- Liquidity and size. Larger funds tend to have tighter spreads, which matters if you trade in and out.
- Correlation. The whole point is diversification, so check how the fund has moved relative to the rest of your portfolio rather than chasing its recent return.
What to expect
Managed futures shine in sustained trends and can do well when stocks fall, but they grind sideways or lose money in choppy markets and lag strong bull markets. They are a satellite holding for diversification, not a core position. As with any trend strategy, the risks are real, and you should test honestly before trusting any rule.
FAQ
What is the best managed futures ETF?
There is no single best. DBMF is the largest and most liquid, KMLM is the only one that directly tracks an index, and CTA has the lowest expense ratio of the three. The right pick depends on what you prioritize.
What are managed futures ETFs?
Managed futures ETFs are funds that run a systematic trend-following strategy across futures markets, such as commodities, currencies, and interest rates, and package it as an exchange-traded fund.
Are managed futures a good investment?
They are used mainly for diversification, because their returns have been largely uncorrelated with stocks. They can lag badly in strong bull markets and there is no guarantee they help in every downturn. Treat them as a satellite, not a core holding.
Are there any futures ETFs?
Yes. Managed futures ETFs such as DBMF, KMLM, CTA and MFUT hold futures contracts inside the fund, so you get futures-based trend following without opening a futures account.
Disclaimer: Educational content only, not financial advice. Fund fees and details change; verify them on the issuer’s site before investing. Full disclaimer and affiliate disclosure.
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