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What are managed futures?

Managed futures are a highly flexible alternative investment traded on many financial and commodity markets around the world. By broadly diversifying across markets, managed futures may simultaneously profit from price changes in stock indices, treasury futures or bond futures, and currencies, as well as from diverse commodity markets having virtually no correlation to traditional asset classes such as the stock market.

Benefits of managed futures

By their very nature, managed futures provide a diversified investment opportunity. Trading advisors can participate in more than 150 global markets; from grains and gold to currencies and stock indices. Many funds further diversify by using several trading advisors with different trading approaches.

The potential benefits of managed futures within a well-balanced portfolio include:

  • Potential to lower overall portfolio risk
  • Potential opportunity to enhance overall portfolio returns
  • Broad diversification opportunities
  • Potential opportunity to profit in a variety of economic environments
  • May limit losses due to a combination of flexibility and discipline

Trading futures and options involves substantial risk of loss and is not suitable for all investors. The use of the phrase “Managed Futures” refers to the asset class, and not to any individual Commodity Trading Advisors program. Be advised that an individual program could have better or worse performance results when compared to the Stock Market. There are no guarantees of profit no matter who is managing your money. Past performance is not necessarily indicative of future results. Be advised that an individual cannot invest in the index itself and the actual rates of return for an individual program may significantly differ and be more volatile than the index.