Managed Futures
What are Managed Futures?
Managed Futures are to commodities, what mutual funds are to
stocks. The mutual fund manager selects (for example) a
basket of stocks such as Apple, IBM, Google etc. As these stocks
go up and down, so does each share of the mutual fund. If the
stock market has a large correction, the fund manager can dump the
stock or hold on.
Managed Futures are run by a Commodity Trading Advisor (CTA). The CTA has an advantage over a mutual fund manager. In a down market, a CTA can short the futures market and make money in a futures position that gains value as the market falls. The CTA can also sell call options above the market and buy puts below the market to increase account value on a market correction. This is why in 2008 commodities performed poorly, but managed futures, as an asset class, performed well… some CTA's were able to take advantage of the falling commodity prices and post gains for the year.
What type of account is needed? Managed Futures can be traded in a 401k, SEP-IRA, trust account or any other type of self directed account. We utilize Millennium Trust Company as the trustee.
To take a look at the CTA's we recommend and learn more about Managed Futures please visit Vision's CTA website
Call us now for more info at 1-800-780-7001
TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR MONEY. AN INVESTOR MUST READ AND UNDERSTAND THE COMMODITY TRADING ADVISORS CURRENT DISCLOSURE DOCUMENT BEFORE INVESTING. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.