What are managed futures?
Managed futures are a type of alternative investment. Learn how they work and why some Canadian investors buy them.
Why are mortgages so expensive in Canada?
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Managed futures is a portfolio of futures contracts that are a type of investment where buyers and sellers agree to trade an asset at a given price at a specific future date. Considered an alternative investment vehicle, managed futures are used by investors to add portfolio diversification and mitigate risk. Managed futures expose investors to assets that are not found in direct equity investments, and they can perform well in both up and down markets.
Example: “Managed futures managers use different strategies to choose stocks and derivatives. Before investing, you can request disclosure documents for more information.”
Read more on managed futures:
- What are managed futures?
One of the most difficult tasks in building a portfolio is finding asset classes that do not move in lockstep with stocks or bonds. Non-correlation—the tendency of an asset class to move independently of others—lowers a portfolio’s volatility, but it’s elusive. Perhaps the most promising candidate is commodities. - Tim Pickering on Managed Futures, Part 1
Tim Pickering, president of Auspice Capital Advisors, manages both the Horizons Auspice Managed Futures Index ETF (HMF) and the iShares Broad Commodity Index Fund (CBR). - Tim Pickering on Managed Futures, Part 2
Part two of the interview with Tim Pickering. Managed futures has traditionally been a hedge fund strategy, used mostly by institutions. Can it really be adapted for the retail ETF investor?
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