This is a capital-efficient ETF that stacks US equity exposure and trend-following managed futures exposure on top of the same invested capital. With a single investment, investors gain exposure to both equities and an alternative strategy, aiming for diversification benefits.

It suits investors who want to hold US equities and managed futures together in a capital-efficient way and who are willing to accept the risks of a leveraged structure.

It is an actively managed ETF run by Return Stacked.

The fund follows a return stacking strategy, layering US equity exposure and trend-following managed futures exposure on top of the same capital. While maintaining equity exposure, it adds diversification through managed futures, which have a low correlation with equities. Because it expands exposure through futures, both volatility and risk rise as well.

• A capital-efficient structure that stacks equities and managed futures
• Combines a diversifying strategy with low correlation to equities

Assets under management (AUM) stand at $572.9M, and the expense ratio is 0.99% per year.

Compared with typical asset allocation ETFs or managed futures ETFs, the main points of comparison are the expanded exposure through leverage and the way the strategies are combined.

A return stacking strategy tends to try to capture the gains of both strategies when equities and managed futures are strong together, while losses tend to widen when both are weak. Managed futures can show pronounced diversification benefits in markets with clear trends.

For capital-efficient products, fund flows vary with interest in diversification and efficiency, and money sometimes moves into this product group when demand grows for alternative strategies with low correlation to equities. It is also worth noting that performance can differ significantly depending on changes in the correlation between equities and managed futures.

Its strength is capital-efficient simultaneous exposure to equities and an alternative strategy, while leveraged volatility, the risk of both strategies underperforming at once, and futures costs are points to consider.

Similar capital-efficient alternatives include RSSB, which stacks global equities and bonds, and NTSX, which stacks US equities and bonds. For those who want to focus only on managed futures, products such as DBMF are also worth comparing. The three products shown in the table, CTA, ALLW and IALT, differ in how they combine with equities, as they represent managed futures, all-weather and systematic alternative strategies respectively. This ETF's distinguishing factor is its capital-efficient structure that stacks US equities and managed futures.

Here are the points to review before investing in RSST. Capital efficiency and diversification are attractive, but leveraged volatility, simultaneous weakness in both strategies, and futures costs should be checked in advance. It is also a good idea to compare it with general asset allocation and managed futures products.

Wider losses when equities and managed futures both underperform, leveraged volatility, and futures losses in the absence of trends are the main variables for short-term performance, and managed futures can struggle in markets with weak trends. Investors should keep in mind that the capital-efficient structure carries more risk than ordinary equities.

This is a suitable candidate for investors who want to hold US equities and managed futures together in a capital-efficient way. To stack equities and bonds, consider products such as RSSB and NTSX. If you want a capital-efficient structure combining equities and managed futures, it is advisable to choose this product after understanding how it works.