Managed futures are a decades-old hedge fund strategy, run by firms known as CTAs (Commodity Trading Advisors). At its core is trend following: a strategy using systematic, rules-based models to identify assets that are moving persistently up or down, then going long the uptrends and short the downtrends. Crucially, it trades across dozens of global futures markets at once, including crude oil, gold, the dollar, Treasurys, the S&P 500, and more. This means they’re not dependent on any single market going up.
That ability to profit from falling markets by going short is what sets managed futures apart from almost every other ETF category. A stock fund needs stocks to rise; a managed futures fund just needs things to move.
Why Investors Use Managed Futures ETFs
The headline appeal is diversification that actually works when you need it. Managed futures have historically had low and even sometimes negative correlation to stocks and bonds, and they’ve tended to shine during prolonged market stress. In 2022, as both equities and bonds fell sharply, trend-following strategies soared by shorting bonds and riding commodity rallies. Early 2026 offered another test: during the April equity selloff, the major managed futures ETFs posted gains while broad stocks fell. That counter-cyclical behavior is the “crisis alpha” investors prize.
Because they can be short as easily as long, managed futures don’t just dampen volatility but can also generate positive returns when a traditional 60/40 portfolio is struggling. That makes even a modest allocation a potentially powerful hedge against the scenario that hurts most investors: stocks and bonds falling at the same time.
The Major Managed Futures ETFs
The category has grown to roughly 17 U.S.-listed funds. These are the ones that anchor it:
DBMF, the iMGP DBi Managed Futures Strategy ETF, is the category’s giant at over $5 billion in assets. It uses a distinctive replication approach, aiming to mimic the pre-fee returns of the largest CTA hedge funds rather than running its own trend models from scratch. CTA, the Simplify Managed Futures Strategy ETF, is the second-largest and pairs systematic trend signals with an options overlay, a construction designed to react quickly to trend reversals. KMLM, the KraneShares Mount Lucas Managed Futures Index Strategy ETF, tracks a transparent, long-running rules-based index across commodity, currency, and bond futures.
Beyond the big three, RSST (Return Stacked U.S. Stocks & Managed Futures ETF) layers managed futures on top of full S&P 500 exposure using leverage so you don’t have to choose between stocks and the diversifier. FFUT (Fidelity), IMF (Invesco), FMF (First Trust), and WTMF (WisdomTree) round out the lineup, with IMF and WTMF among the lowest-cost options in the group.
What to Watch Out For
Managed futures are a powerful diversifier, not a free lunch. They can suffer long, frustrating stretches of flat or negative returns when markets lack clear trends or whipsaw back and forth — a trend-follower’s worst enemy. They’re also more expensive than plain index funds (most charge 0.65%–0.99%), they’re complex and can be hard to understand, and the various funds can behave quite differently from one another even in the same market. The strategy is best understood as a complement to a stock-and-bond portfolio — a sleeve that earns its keep in the bad years — not a core holding you judge by its return in a roaring bull market.
Frequently Asked Questions
What is a managed futures ETF? An ETF that uses systematic, rules-based strategies (trend following) to take long and short positions across global futures markets — commodities, currencies, bonds, and equity indexes — aiming to profit from sustained price trends in either direction.
Why are managed futures called “crisis alpha”? Because they can go short, they’ve historically performed well during prolonged market downturns — like 2022 — when stocks and bonds fall together, providing returns exactly when traditional portfolios struggle.
What are the biggest managed futures ETFs?DBMF (iMGP DBi) is the largest at over $5 billion, followed by CTA (Simplify) and KMLM (KraneShares). RSST, FFUT, IMF, FMF, and WTMF are other notable options.
Are managed futures a good diversifier? Historically yes — they’ve shown low or negative correlation to stocks and bonds and tend to perform well in crises. But they can lag badly in trendless or choppy markets, so they’re best used as a modest complement to a portfolio, not a core holding.
How much do managed futures ETFs cost? Most charge between 0.65% and 0.99%. IMF (0.65%) and WTMF (0.66%) are among the cheapest; RSST (0.99%) and FMF (0.98%) are at the higher end.
Bottom Line
Managed futures ETFs give everyday investors access to a hedge fund strategy that can be long or short across global markets — a genuine diversifier that has historically delivered when stocks and bonds fall together. DBMF, CTA, and KMLM lead a category of roughly 17 funds, each with its own approach, while RSST offers a clever way to own stocks and managed futures at once. They won’t top the charts in a bull market, and they can test your patience in trendless times — but as “crisis alpha” insurance for the years that hurt most, few ETF categories do the job as directly.
Data as of October 2026, sourced from ETF.com. AUM and expense ratios are approximate and subject to change. Past performance does not guarantee future results. This article is for informational purposes only and does not constitute investment advice.
This article was generated with the assistance of artificial intelligence and reviewed by ETF.com staff.
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