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]

First Trust Managed Futures Strategy Fund (FMF US) – Portfolio Construction MethodologyThe investment process governing the actively managed First Trust Managed Futures Strategy Fund seeks positive returns uncorrelated to broad equity or bond markets by taking long and short positions across exchange-listed futures spanning equity indexes, rates, currencies and, via a wholly owned Cayman subsidiary (≤25% of assets), commodities. Positioning is driven by a mix of qualitative and quantitative signals indicati ...