As stocks and bonds fall, and oil hits $100, a futures trade that boomed in 2022 may again be a winner

• In 2022, managed futures strategies returned +20% while the S&P 500 fell 18% and bonds declined 13%, demonstrating their value during simultaneous stock and bond market stress
• The managed futures ETF category holds approximately $6.5 billion in assets, with the largest fund (iMGP DBi Managed Futures Strategy ETF) attracting about $1 billion in inflows in 2026 alone
• Experts recommend allocating 3-5% of portfolios to managed futures for diversification, but caution that investors must understand the complexity and tolerate periods of underperformance across full market cycles

Summary: Managed Futures Strategies Gain Traction Amid Market Volatility

Key Development:

Managed futures trading strategies are attracting renewed investor attention in 2026 as stocks and bonds decline simultaneously and oil prices reach $100, mirroring conditions from their 2022 breakout year.

Performance Data:

• In 2022, managed futures strategies returned approximately +20% while the S&P 500 fell 18% and bonds dropped 13%
• The iMGP DBi Managed Futures Strategy ETF (DBMF), the largest in the category, has attracted $1 billion in inflows in 2026

Market Size and Growth:

The managed futures ETF sector remains relatively small, holding approximately $6.5 billion in total assets, but is experiencing significant inflows. Major asset managers including BlackRock, Invesco, and Fidelity have launched managed futures funds within the past year, signaling growing retail demand.

Strategy Mechanics:

These funds, typically run by commodity trading advisors, use systematic models to trade futures contracts across multiple asset classes. Unlike traditional investments, they can take long or short positions and aim to capture trends over 3-12 month periods rather than short-term moves.

Current Market Context:

Rising inflation uncertainty, interest rate volatility, and geopolitical tensions from the U.S.-Iran conflict create favorable conditions for managed futures' adaptive approach.

Investment Considerations:

Experts recommend allocating 3-5% of portfolios to managed futures for diversification. However, investors must understand these are complex instruments that can underperform during certain market cycles. Andrew Beer of DBi emphasized the strategy works best over full market cycles, while Nate Geraci of NovaDius stressed the need for investor education and patience through inevitable underperformance periods.