DBMF: Why This Hedge Crumbled When It Was Most Needed
Source: SeekingAlpha
2025-03-13 21:20:17 ET
Summary
- Diversifying portfolios with hedging positions can better weather market disruptions compared to solely relying on equities.
- The iMGP DBi Managed Futures Strategy ETF failed to provide expected support during recent market turmoil for reasons that I explore in this article.
- Investors should not rely on a single ETF for portfolio protection; combining VIXY, BTAL, and managed futures ETFs like DBMF offers more robust hedging.
The S&P 500 ( SPY ) nearly entered correction territory in a very short period of around 12 trading days. But investors that already cultivated the habit of diversifying their portfolios outside equities and/or adding hedging positions to weather market disruptions probably fared better. For instance, the AGFiQ U.S. Market Neutral Anti-Beta Fund ETF ( BTAL ), a fund that I suggested " could save your portfolio in 2025 ", was up 12% YTD through March 11 (and about 15% since mid-February alone), while SPY dipped about 5% in the same period....
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DBMF: Why This Hedge Crumbled When It Was Most Needed
iMGP DBi Managed Futures Strategy ETF
NASDAQ: DBMF
DBMF Trading
0.52% G/L:
$30.975 Last:
869,604 Volume:
$30.97 Open:
