Agenda
✅  Introduction to Managed Futures and Trend Following
✅  The Creation and Philosophy Behind Managed Futures ETF
✅  Replication Strategy and Its Advantages
✅  Managed Futures in Portfolio Construction
✅  Future Outlook: Geopolitical Uncertainty and Market Volatility

In this enlightening episode of the ETFAtlas.com podcast, host Jack Lempart sits down with Andrew Beer to explore the world of managed futures and their growing importance in modern portfolio construction.
 
Andrew Beer, with his extensive background in hedge fund management, shares his journey from traditional hedge funds to creating accessible, ETF-based strategies for a broader audience. He explains the concept of managed futures, emphasizing their role as a standalone allocation that can provide crucial diversification benefits, especially during periods when traditional assets like stocks and bonds underperform.
 
The conversation delves into the creation of managed futures ETFs, highlighting their unique approach to replicating hedge fund strategies through a systematic, non-discretionary method. Beer elaborates on the advantages of this replication strategy, including lower costs and improved accessibility for retail investors. He draws parallels between the ETF revolution sparked by John Bogle and the potential for managed futures ETFs to democratize sophisticated hedge fund strategies.
 
A significant portion of the discussion focuses on the challenges faced by traditional 60/40 portfolios and how managed futures can address these issues. Beer argues that the investment landscape is changing dramatically, with many long-held assumptions being challenged. He posits that managed futures strategies, particularly trend following, are well-positioned to capitalize on these shifts and provide valuable diversification.
 
The podcast also touches on the expansion of managed futures ETFs into European markets, highlighting the complexities of global distribution and the efforts to make the strategy more accessible to international investors. Beer shares insights into the structural differences between U.S. and European markets and how these impact ETF adoption.
 
Towards the end, the conversation turns to the current geopolitical climate and its potential impact on managed futures strategies. Beer offers a nuanced perspective, explaining how both information changes and sentiment shifts can affect market trends and strategy performance.
 
Throughout the episode, Beer emphasizes the importance of fee reduction as a form of alpha and the need for investment strategies to adapt to changing market conditions. He presents managed futures as a valuable tool for navigating uncertain times, potentially offering protection and opportunities when traditional assets struggle.
 
This episode provides listeners with a comprehensive understanding of managed futures, their implementation through ETFs, and their potential role in modern portfolio management. It’s an essential listen for investors, advisors, and anyone interested in exploring innovative approaches to diversification and risk management in today’s complex financial landscape.

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