 The
IM Dbi Managed Futures Strategy ETF (DBMF) is an exchange-traded fund
that seeks to provide exposure to managed futures strategies. Managed
futures involve investments in futures contracts, which are contracts
to buy or sell a specified commodity, financial instrument or currency
at a predetermined price and date in the future. These strategies are
often used to hedge against market volatility, manage risk, or provide
diversification benefits.
The ETF is managed by Dorsey Wright
Money Management (DWMM), which uses a proprietary relative strength
strategy to determine the investment allocation among various asset
classes, including global equities, fixed income, currencies, and
commodities. The strategy also uses trend-following techniques to
identify and capitalize on market trends.
DBMF is a relatively
new ETF, having launched in December 2019. As of March 2023, the ETF
has total net assets of around $14 million and an expense ratio of
1.10%. The fund has an index-based approach and seeks to replicate the
performance of the DBIQ Diversified Trends Indicator, which is
designed to provide exposure to a diversified portfolio of 24
commodity and financial futures contracts across various asset
classes. The ETF invests primarily in futures contracts, swaps, and
other derivatives.
Investors in DBMF should be aware that
managed futures strategies can be complex and may involve significant
risks, including the potential for substantial losses. These
strategies also typically involve higher costs and may have higher
turnover than traditional investment strategies. As with any
investment, it is important to carefully consider the risks and
potential rewards before investing in DBMF.
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