Key Takeaways
- • Managed futures ETFs have drawn sharp inflows in 2026, with iMGP's DBMF attracting $2.8 billion this year on $5.1 billion in assets and rising roughly 18% year to date, according to Morningstar Direct.
- • The KFA Mount Lucas Managed Futures Index Strategy ETF (KMLM) has taken in about $377 million in 2026 on roughly $600 million under management and is up nearly 20% year to date.
- • The Simplify Managed Futures Strategy ETF (CTA) is up just over 10% year to date but has seen about $340 million in outflows over the past three months, which the article attributes possibly to shakeups in its management team.
- • The typical managed futures fund lost an annualized 2.3% between 2022 and 2025, making the 2026 rebound a notable reversal for the category.
- • Industry executives position managed futures as a source of uncorrelated returns and a complement to bonds rather than a crisis hedge.
Summary
Managed futures are drawing renewed investor interest as their recent performance recovers and their access broadens through exchange-traded funds. The Daily Upside notes that the strategy, once largely the domain of institutions, is now available to individual investors via ETFs. Returns were weak between 2022 and 2025, when the typical fund in the category lost an annualized 2.3%, but several managed futures ETFs have had a stronger 2026, with some nearing 20% year-to-date returns.
Paul Cavazos, CIO of American Beacon Advisors, described the strategy as "true diversification," pointing to the lack of diversification in traditional 60/40 portfolios. He cited a correlation to world stocks of 0.08 for managed futures. Jerry Prior, CIO of managed futures at Mount Lucas, said the strategy can profit in markets with sustained movement, including rising stock markets, rather than only during downturns. He argued that managed futures are not designed to be a day-one crisis hedge, noting that the strategy typically performs better over medium- to long-term trends.
Flows have picked up this year. According to Morningstar Direct, DBMF, with $5.1 billion under management, took in $2.8 billion in 2026 and is up roughly 18% year to date. KMLM, with about $600 million in assets, has attracted about $377 million this year and is up nearly 20%. CTA is up just over 10% year to date but has seen roughly $340 million leave over the last three months, a decline the article links possibly to management team changes.
Prior said managed futures are best viewed as a complement to a portfolio rather than a wholesale replacement for bonds or other diversifiers, though he described them as a possible replacement for some bond exposure. He noted that bonds "can't do all the stock diversification by themselves" and characterized managed futures as a large, mature asset class trading in very liquid markets.
Paul Cavazos, CIO of American Beacon Advisors, described the strategy as "true diversification," pointing to the lack of diversification in traditional 60/40 portfolios. He cited a correlation to world stocks of 0.08 for managed futures. Jerry Prior, CIO of managed futures at Mount Lucas, said the strategy can profit in markets with sustained movement, including rising stock markets, rather than only during downturns. He argued that managed futures are not designed to be a day-one crisis hedge, noting that the strategy typically performs better over medium- to long-term trends.
Flows have picked up this year. According to Morningstar Direct, DBMF, with $5.1 billion under management, took in $2.8 billion in 2026 and is up roughly 18% year to date. KMLM, with about $600 million in assets, has attracted about $377 million this year and is up nearly 20%. CTA is up just over 10% year to date but has seen roughly $340 million leave over the last three months, a decline the article links possibly to management team changes.
Prior said managed futures are best viewed as a complement to a portfolio rather than a wholesale replacement for bonds or other diversifiers, though he described them as a possible replacement for some bond exposure. He noted that bonds "can't do all the stock diversification by themselves" and characterized managed futures as a large, mature asset class trading in very liquid markets.
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