Rydex Takes Managed Futures Mainstream

Mar 6 2007 | 3:42pm ET

Rydex Investments is taking retail investors a step further into the alternatives investment space with a mutual fund featuring exposure to managed futures.

The Rydex Managed Futures Fund, which was launched this week, will provide its investors access to the U.S. commodity and global financial futures markets through the use of structured notes by tracking the performance of the Standard & Poor’s Diversified Trends Indicator.
 
The S&P DTI is comprised of 14 sectors with 50% allocated to financial futures and 50% to commodity futures. It has the ability to go long or short based on price momentum with the exception of the energy sector, which can only go long or neutral. The model rebalances on a monthly basis.

“The S&P DTI methodology is rules-based and relies on trends to capture profits,” said Edward Egilinsky, managing director of alternative investments at Rydex. “The S&P DTI also offers benefits from a diversification standpoint. It has historically shown a very low or slightly negative correlation to traditional investments such as fixed-income and equities and at the same time exhibits an attractive risk/return ratio.”

Rydex currently manages some $14 billion in mutual funds and exchange-traded funds.


In Depth

Q&A: Fund Administration Comes To The Cloud

Jul 14 2017 | 7:23pm ET

The fund administration sector has been steadily implementing new technology, such...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Rastegar: PE Real Estate Gains Momentum as Uncertainty Rises

Jul 21 2017 | 6:04pm ET

The steady march of equity markets and fundamental shift in the direction of Fed...

 

From the current issue of