In today’s market, many investors are searching for alternative strategies to help reduce portfolio volatility. Learn why now is a good time to consider one of the few out-of-favor asset classes—managed futures—that is starting to see a stronger investment case shine through.
When investors build strategic allocations, most believe that it is not good to have all your eggs in one basket. But over time, portfolios drift and often incorporate a bias based on recent performance. With volatility picking back up, it is a good time to review whether portfolios are properly diversified.
Managed futures strategies have been among the most disappointing investment categories over the past few years. After a trendless market where this category had low to negative returns, in the fourth quarter of 2017 our managed futures strategy saw the strongest three-month return in its short life span.
Markets are a challenging place, and many experienced investors know not to confuse a lack of volatility with stability. Markets love volatility, which often lurks behind the prevailing calm. But how should an investor deal with the rising volatility associated with the unexpected?
As of July 1, the WisdomTree Managed Futures Strategy Fund (WDTI) began tracking a proprietary WisdomTree Index, the WisdomTree Managed Futures Index.