The ASMF ETF is an actively managed ETF that draws on the risk and return characteristics of leading global managed futures strategies while gaining exposure to highly liquid futures contracts across global equity, bond, currency, and commodity markets. It uses models that identify price trends as part of its investment process.

It suits investors who want to add a different source of return to a portfolio built around stocks and bonds, and who understand derivatives volatility and strategy risk.

This is an actively managed ETF run by Virtus AlphaSimplex.

This product combines index replication techniques with trend-following models to analyze price movements in each market. Through futures contracts, it can take long or short exposure to global equities, bonds, currencies, and commodities, seeking a source of return that does not depend on market direction alone.

• A managed futures approach that uses futures across multiple asset classes
• Systematic management that reflects changes in trends and volatility

Assets under management (AUM) stand at $30.9M, and the total expense ratio is 0.80% per year.

Because of the futures-based nature of its strategy, trading conditions and bid-ask spreads can affect the investing experience with the ASMF ETF, so it is worth checking order types and liquidity before trading.

The return profile of a managed futures strategy is influenced less by the direction of stock and bond markets than by the persistence and reversal of trends across multiple asset classes. As a result, performance can swing more widely when traditional assets move in the same direction and during sharp price reversals.

Fund flows into this product can be influenced by the market's assessment of diversification benefits relative to traditional assets, the interest rate and currency environment, commodity price changes, and geopolitical variables. The role of a managed futures strategy can differ depending on the market regime, so it is hard to judge its character from short-term trends alone.

Diversified exposure across multiple futures markets is a strength, but the derivatives structure and trend reversals can raise volatility and the risk of loss.

The CGBL ETF in the comparison table is based on blended asset allocation, so its sources of risk differ from the ASMF ETF, which focuses on managed futures. The IALT ETF falls into a similar alternative strategy category, but its fees and management approach should be compared together. The ALLW ETF differs in that it is an allocation strategy designed with multiple economic environments in mind, while the CTA ETF and DRSK ETF are worth examining mainly for differences in their managed futures or risk management approaches.

Before investing in the ASMF ETF, review the role a futures-based managed futures strategy plays in your overall asset allocation, whether the once-a-year distribution structure fits your cash flow plan, and whether you can bear the trading conditions when buying and selling.

Futures contracts and trend-following models can raise the possibility of losses when market volatility increases or price direction shifts quickly. Results may differ from the movements of stock and bond markets, so you should not assume that the diversification benefit will always hold.

The ASMF ETF is a product that investors seeking a return stream different from traditional assets can consider when evaluating managed futures strategies. However, you should decide only after confirming that its costs, trading conditions, derivatives risk, and once-a-year distribution structure fit your own asset allocation and investment horizon.