Tuttle Plans Leveraged Managed Futures ETF
Tuttle Capital Management has filed for a leveraged exchange-traded fund that will provide twice the daily returns of the $888 million iMGP DBi Managed Futures Strategy ETF (DBMF). The fund was up 21.5% in 2022, according to Morningstar.
The Tuttle Capital 2X DBMF ETF (MFUT) will come with an expense ratio of 0.85% according to its prospectus, which is what DBMF charges. Both funds are actively managed.
DBMF aims to mimic the performance of commodity trading advisor hedge funds and has the latitude to invest in a wide array of futures contracts via long or short positions across a range of asset classes including equities, commodities and fixed income.
That ability served it well in 2022, when it was one of the best-performing funds at a time when equities and bonds were largely on downward trajectories. Currently, the fund has long positions in futures on the euro, the MSCI EAFE index, the MSCI Emerging Markets Index, WTI crude oil and gold. The fund’s short positions include futures on the yen, Treasury debt and the S&P 500.
Taking on short positions likely helped to boost its performance during a period like last year when most key asset classes were in negative territory. Its current long exposure to futures on foreign indexes reflects the current market trend that has seen investors shifting their assets from U.S. equities into international equities in developed as well as emerging markets.
Matthew Tuttle, founder of Tuttle Capital Management, previously launched an ETF that shorts the performance of the ARK Innovation ETF (ARKK), one of the worst-performing ETFs of 2022. The AXS Short Innovation Daily ETF (SARK), was up nearly 82% last year, while its reference asset was down almost 67%. However, SARK has been having a rough time in 2023, with ARKK up more than 40%. The inverse ETF is down more than 31% as of Feb. 2.
SARK was acquired last year by AXS Investments along with the other five ETFs offered by Tuttle’s firm. Tuttle joined AXS briefly at the time before parting ways several months later, and looks to be continuing to take a similarly edgy and innovative course in the aftermath.
Contact Heather Bell at heather.bell@etf.com
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