DBMF - RSST: New Managed Futures Fund With An S&P 500 Core Position

2024-04-23 08:05:11 ET

Summary

• Return Stacked U.S. Stocks & Managed Futures ETF is an innovative ETF that combines a U.S. equity strategy with a managed futures strategy.
• RSST takes a long position in the S&P 500 and overlays it with a futures-based position to create an asset class.
• The fund's risk factors can change constantly, and it can represent leveraged takes on certain risk factors.
• The fund is new, having IPO'd in 2023, but has managed to be up +11% in 2024, driven by its long equities (1.5x factor), short bonds, and long commodities risk factors.

Thesis

Return Stacked U.S. Stocks & Managed Futures ETF ( RSST ) is an exchange-traded fund. The vehicle falls in the complex fund bucket via its composition. RSST brings a very innovative package to the market, namely a U.S. equity strategy combined with a managed futures one:

The Fund seeks long-term capital appreciation by investing in two complimentary investment strategies: a U.S. equity strategy and a managed futures strategy. For every $1 invested, the Fund attempts to provide $1 of exposure to its U.S. equity strategy and $1 of exposure to its managed futures strategy.

The U.S. equity strategy seeks to capture the total return of large-cap U.S. equities by investing in large-cap U.S. stocks, large-cap U.S. equity ETFs, and U.S. equity index futures.

The managed futures strategy will invest using a trend-following strategy in futures contracts among four major asset classes: commodities, currencies, equities, and fixed income.

For further details see: