The $3 billion iMGP DBi Managed Futures Strategy ETF outperforms traditional stock-bond portfolios by leveraging trend-following strategies.
The iMGP DBi Managed Futures Strategy ETF (DBMF) has risen 11% year-to-date, surpassing a 60/40 stock-bond portfolio’s 5% return. The $3 billion fund uses trend-following across liquid futures markets, including commodities, rates, and equities, to generate uncorrelated returns.
Managed futures strategies gained traction after bonds failed to hedge equity losses in 2022. DBMF’s closest peer, KMLM, has returned 13% this year, reflecting broader demand for alternatives to traditional portfolios.
The fund charges a 0.85% expense ratio, positioning itself as a stabilizer amid market volatility by avoiding lockstep moves with stocks and bonds.