Core Insights - The iMGP DBi Managed Futures Strategy ETF (DBMF) has demonstrated strong performance during market volatility, particularly during the spike in the VIX to 52.33 in April 2025, which resulted in significant losses for most portfolios [2][4] - DBMF employs trend-following models to invest across various asset classes, aiming to provide returns that are independent of traditional equities and bonds, thus serving as a genuine diversifier [3] Performance Summary - Over the past year, DBMF achieved a return of 25.26%, significantly outperforming the S&P 500 ETF (SPY), which returned 16.54% [4][8] - Year-to-date in 2026, DBMF is up 8.05%, while SPY is down 0.23%, indicating that the current macro environment continues to favor managed futures strategies [5][8] Appeal for Retirees - DBMF offers a potential hedge against sequence-of-returns risk for retirees, as it can rise when equities fall, thus protecting early retirement withdrawals [4] - The fund has a dividend yield that can supplement income during drawdown periods, with a reasonable expense ratio of 0.85% for an actively managed alternatives strategy [6] Long-term Considerations - Over a five-year period, DBMF returned 53.12%, compared to SPY's 80.6%, highlighting that trend-following strategies perform better during market dislocations rather than calm bull markets [7]

Core Viewpoint - Simplify Asset Management has launched the Simplify DBi CTA Managed Futures Index ETF (SDMF) to enhance its alternatives lineup, aiming to provide institutional-grade hedge fund replication to a broader audience [1] Group 1: Product Launch and Strategy - The SDMF ETF debuted on February 19 on the NYSE Arca and tracks the DBi CTA Managed Futures Index, which seeks to replicate the pre-fee performance of the largest managed futures funds in the industry [1] - The strategy employs a rules-based, 10-factor replication model designed to capture major themes in the CTA space, allowing for long and short positions across various asset classes including equities, rates, currencies, and commodities [1] - SDMF primarily utilizes total return swaps to achieve capital efficiency and potentially enhanced tax treatment for investors [1] Group 2: Market Demand and Advisor Support - The launch of SDMF addresses the increasing demand from advisors for absolute return strategies amid persistent market volatility [1] - By replicating a basket of funds instead of relying on a single manager, the strategy aims to reduce selection risk commonly associated with managed futures [1] Group 3: Innovation in Alternatives - The SDMF launch follows other innovative products from Simplify, such as the Simplify Private Credit Strategy ETF (PCR), which offers exposure to the private credit market through a liquid, indexed approach [1] - The distinction between SDMF and PCR underscores Simplify's commitment to equipping advisors with precise tools for modern portfolio construction, catering to both trend-following and income-generating investment strategies [1]

Core Insights - The First Trust Managed Futures Strategy Fund aims for positive returns that are uncorrelated to broader equity or bond markets by utilizing long and short positions across various exchange-listed futures [1] Investment Strategy - The fund's investment process involves a combination of qualitative and quantitative signals to identify upward or downward price trends, allowing for frequent adjustments in exposures, potentially on a daily basis [1] - The fund can leverage its positions, with aggregate futures notional potentially exceeding net assets, and typically holds collateral in short-term U.S. government/agency securities, repurchase agreements, money market instruments, and cash [1] Portfolio Management - The portfolio has the flexibility to reduce commodity exposure during adverse conditions and may incorporate short energy exposure [1] - The fund may also utilize ETFs and other investment companies for additional exposure where permitted, enhancing its investment strategy [1] - High liquidity is maintained through the use of exchange-traded instruments, with risk and exposure managed via contract selection, notional sizing, and continuous monitoring of cross-asset interactions [1]