KMLM - KMLM: A Good Managed Futures Option For Diversification

2024-03-08 02:33:58 ET

Summary

• KFA Mount Lucas Managed Futures Index Strategy ETF offers exposure to managed futures strategies, providing unique opportunities to capitalize on asset class gains and losses.
• The ETF holds a diverse range of asset classes, including commodities, currencies, and fixed income, with a focus on capturing opportunities in these sectors.
• KMLM faces competition from iMGP Dbi Managed Futures Strategy ETF, but may be nearing a relative low and is a good allocation as part of an alternative allocation.

I'm a fan of the idea that diversification comes not just from asset class, but from strategy as well. And despite it being overall a difficult decade for managed futures strategies (with the exception of 2022), I think as an alt allocation it's worth having some exposure. Managed futures strategies offer unique opportunities to capitalize on asset class gains and losses through long and short positions in the futures market. That's where the KFA Mount Lucas Managed Futures Index Strategy ETF ( KMLM ) comes into play as one way to get exposure....

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