It is a managed futures strategy ETF that trades futures across multiple assets — commodities, currencies, and interest rates — based on trends. It adjusts long and short positions in line with asset-price trends, pursuing a return source with low correlation to equities.

It is suited to investors looking to add a diversifying return source through a trend-following strategy with low correlation to equities and bonds, while accepting periods of underperformance when trends are absent.

The ETF is actively managed by Invesco.

It runs a trend-following strategy that takes long or short positions based on price trends in commodity, currency, and interest-rate futures. It seeks returns when trends are strong, offers low correlation to equities and bonds for diversification during market sell-offs, and tends to lag when trends are weak.

• Trend-following across multiple asset futures
• Pursues low correlation to equities

Assets under management (AUM) stand at $323.0M, and the total expense ratio is 0.65% annually.

The main comparison point versus single-asset products is its strategy of following trends across multiple futures to pursue diversifying return sources.

Managed futures performance hinges on the strength of asset-price trends — it tends to deliver gains when trends are clear and underperform when direction frequently flips. With low correlation to equities and bonds, it can play a defensive role during sharp market drawdowns.

Flows into and out of managed futures products vary with market volatility, demand for diversification, and trend strength. During periods when investors grow more interested in diversifying return sources beyond equities and bonds, money often rotates into this product category. Performance can also swing meaningfully with the trend environment, which is worth examining.

Low correlation and crisis-defense capability are strengths, while drawdowns in trend-absent environments, volatility, and strategy complexity are the key considerations.

For investors seeking a different managed futures strategy, CTA serves as a direct substitute, while those wanting a systematic alternatives approach can also compare products such as IALT. For an all-weather asset allocation, products like ALLW are worth reviewing as well. CTA, IALT, and ALLW shown in the table differ in management style — managed futures, systematic alternatives, and all-weather allocation, respectively — and this ETF's differentiator is Invesco's trend-following managed futures approach.

Key items to review before investing in IMF. Low correlation and crisis-defense appeal are attractive, but drawdowns in trend-absent markets, volatility, and strategy complexity warrant pre-investment review. Comparing against other managed futures and alternatives-strategy products is also advisable.

Drawdowns when trends frequently reverse and volatility from futures positions are the main performance variables, and the trend-following structure makes intuitive assessment of returns difficult. Extended periods of weak trends can lead to prolonged underperformance.

It is a suitable candidate for investors seeking to add a diversifying return source through a trend-following strategy with low correlation to equities and bonds. For those wanting a different managed futures approach, comparing against products like CTA, and for those specifically seeking Invesco's trend-following strategy, comparing against this product is advisable before making a selection.