This is an actively managed ETF that targets absolute returns with low correlation to the stock and bond markets. It uses long and short positions across global equity, interest rate, currency and commodity futures, systematically capturing price trends across multiple time horizons as well as macro opportunities.

It suits diversification-minded investors who want to add a low-correlation asset to a traditional stock and bond portfolio.

The ETF is actively managed by Manteio Scalable Technologies.

The fund reads trends and macro signals across global equity, interest rate, currency and commodity markets using rules-based methods to build long and short positions. Because short positions can profit even in downtrends, performance tends to diverge from traditional assets when stocks and bonds fall at the same time.

• A long-short structure that uses both upward and downward positions
• A source of returns with low correlation to stocks and bonds
• A macro strategy spread across multiple asset classes and time horizons
• Packaged as an ETF, so it can be traded in an ordinary brokerage account

Assets under management (AUM) stand at $62.6M, and the expense ratio is 0.80% per year.

This product brings the hedge fund world's managed futures strategy into a listed ETF format. Because of active management and the use of derivatives, its fee burden is higher than that of typical index ETFs.

Given the nature of trend-following strategies, performance tends to improve when markets have a clear direction and to lag in sideways markets where direction reverses often. The strategy is characterized by repeated stretches in which it moves independently of the stock market.

After stocks and bonds fell together, demand for diversification tools grew, and interest carried over to the managed futures category. However, this product's assets are still small, so trading conditions can change with fund inflows and outflows.

Its strength is a source of returns different from traditional assets, while its weaknesses are a high fee, small asset size and a strategy structure that is hard to understand.

Comparable data for direct peers in the same category is limited. Listed alternatives with a similar character include DBMF, which pursues trend following, KMLM, which captures commodity, interest rate and currency trends together, and CTA, an alternative strategy bundle. If you are looking for a diversifier among traditional assets, PDBC, with its broad commodity exposure, is also an option, though of a different nature. It is best to compare fees, strategy rules and trading liquidity side by side before choosing.

Managed futures ETFs differ considerably from ordinary index ETFs. Reviewing the four items below in order before buying can narrow the gap between expectations and actual behavior.

In markets where trends frequently break down, losses can accumulate, and because the fund is run mainly with derivatives, margin and roll costs also affect performance. The small asset size also shows up as higher trading costs.

It is best suited as a diversifying complement to a portfolio built around stocks and bonds, held at only a modest weight. Rather than treating it as a standalone core holding, define its role within your overall asset allocation before investing.