CTA - CTA: 5 Reasons I Added This 7.6% Yielding ETF To My Portfolio
2024-06-18 07:00:00 ET
Summary
- I am thrilled to learn new investing concepts, and adapt them into tools that help my family and others build bunker portfolios optimized for your needs.
- Managed futures, specifically Simplify Managed Futures Strategy ETF, offer potential for maximizing income, boosting returns, and reducing volatility in a portfolio.
- CTA has shown superior historical returns, consistent dividends, and unique strategies that could potentially outperform its peers by 3% per year.
- The risks to be aware of are that its volatility can be much higher than that of more proven peers like KMLM.
- Optimal portfolio design may include up to 50% managed futures, providing diversification, returns, and income growth while reducing volatility, including peak portfolio declines of just 7.5% since 1990 and 17% gains during the Great Recession. All while achieving double-digit returns and yields between 7% and 15%.
I have just learned two things that were very exciting and intriguing.
These facts potentially hold potent implications for my family portfolio and could also help optimize total returns and income growth for income investors who apply them.
I explain why managed futures might be essential for maximizing long-term income, boosting returns, reducing volatility, and helping you sleep well during even the most extreme bear markets.
What I've learned is so powerful that I made the following purchase this morning after confirming with our portfolio optimizer.
| Stock/ETF |
| Ticker |
| Action |
| Shares |
| Price |
| Value |
| Profit/Loss |
| Remaining Shares |
| Cost Basis |
| Reason |
| KFA Mount Lucas Index Strategy ETF |
| KMLM |
| Buy |
| 2275 |
| $28.67 |
| $65,224.25 |
| NA |
| 21,600.0000 |
| $29.15 |
| King Of Hedges |
| KFA Mount Lucas Index Strategy ETF |
| ( KMLM ) |
| Buy |
| 400 |
| $28.40 |
| $11,360.00 |
| NA |
| 21,600.0000 |
| $29.15 |
| King Of Hedges |
| Simplify Managed Futures Strategy ETF |
| ( CTA ) |
| Buy |
| 1000 |
| $26.32 |
| $26,320.00 |
| NA |
| 1000 |
| $26.32 |
| Increasing Managed Futures Allocation |
| Enbridge |
| ( ENB ) |
| Buy |
| 300 |
| $35.26 |
| $10,578.00 |
| NA |
| 4731.3358 |
| $35.78 |
| Fantastic 5, Ultra Yield Aristocrat |
| Enbridge |
| ENB |
| Buy |
| 100 |
| $35.02 |
| $3,502.00 |
| NA |
| 4731.3358 |
| $35.78 |
| Fantastic 5, Ultra Yield Aristocrat |
| Pacer Cash Cows ETF |
| [[COWZ]] |
| Sell |
| -200 |
| $54.53 |
| -$10,906.00 |
| -$437.04 |
| 220 |
| $56.20 |
| Optimizing Portfolio Strategy |
| Total |
| $106,078.25 |
| -$437.04 |
Note that while I'm considering buying CTA eventually, it will have to prove itself unless I can obtain backtest daily data that I can input into the portfolio optimizer as I did with the Return Stacked ETFs.
KMLM has 3.5 years of historical data confirming the index data from 1988. However, I wanted to offer this analysis to anyone looking for monthly income from a managed futures ETF....
CTA: 5 Reasons I Added This 7.6% Yielding ETF To My Portfolio