ProShares has launched the ProShares Managed Futures Strategy (FUTS), an exchange-traded fund that seeks to profit from rising or falling markets.
FUTS follows the S&P Strategic Futures Index, which is designed to capitalise on upward and downward trends in the futures markets.
“With their low correlation to both stocks and bonds, managed futures strategies can be a smart choice for investors looking to enhance the risk-adjusted returns of a traditional portfolio,” says Michael L Sapir, chairman and CEO of ProShare Advisors. “By offering access to alternatives like managed futures with the liquidity, transparency and cost effectiveness of ETFs, we’re helping investors build better portfolios.”
Managed futures strategies identify price trends in the futures markets and take long or short positions across asset classes such as commodities, currencies and fixed income. This flexibility means they can potentially capture value from both upward and downward price movements in these markets. Managed futures portfolios have historically provided risk-adjusted returns comparable to those of stocks with low correlation to the stock and bond markets.