Our weekly newsletter is up at: https://bit.ly/hvGVwC – asking the question….

Why is $2.39 Billion worth of investors’ capital paying Rydex 2% per year to underperform the managed futures benchmark by a factor of 8 on the return side, or a factor of nearly 3 on the risk side?

We promised in a blog post at the beginning of January to get into more detail about these so called managed futures investments which actually don’t have any managed futures exposure at all. Well, here we are a few weeks later, and we’ve compiled the necessary statistics to delve into the issues surrounding these two so called managed futures offerings: Wisdom Tree’s Managed Futures ETF (WDTI) and Rydex’s Managed Futures Fund (RYMFX)

They both do the same thing, which is track the S&P Diversified Trends Indicator®, not any of the hundreds of professional CTA programs which manage over $266 Billion or any of the 20 programs which make up the Newedge CTA index, but a single indicator.

So how does a managed futures tracking product accomplish its goal when it tracks not managed futures, but something else – the S&P Diversified Trends Indicator? It doesn’t…

Click Here for the full piece: https://bit.ly/hvGVwC