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The Potential Benefits of Managed Futures

June 2023

Used by investment professionals for more than 30 years, managed futures are an asset class with over $346 billion in assets under management. Managed futures can play an important role by:

  • Providing the potential for positive returns in a variety of economic environments
  • Creating a truly well-diversified portfolio with exposure to commodities and financial futures
  • Helping to potentially reduce risk

Potential for Enhanced Returns

Managed futures have the potential to produce positive returns in both equity bull and bear markets, striving to enhance a portfolio’s overall performance.

Performance of Managed Futures, U.S. Stock and U.S. Bonds

Growth of a Hypothetical $1,000 investment – September 1, 2000, through June 30, 2023

Performance of Managed Futures, US Stocks and US Bonds

Potential for Increased Diversification

Managed futures provide exposure to a broad variety of global investments in commodities and financial futures. The below hypothetical charts illustrate how adding managed futures to a portfolio of stocks and bonds has the potential to enhance returns and reduce volatility.

Potential for Reduced Risk

Potential for Mitigated Risk

Managed futures have shown strong historical performance when stocks have suffered. The graph below illustrates the performance of managed futures during the five worst drawdowns of the S&P 500 Index since 1987.

Chart showing managed futures during 5 worst drawdowns for the S&P 500 Index


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