Hedge Fund ETFs: Should You Have One? One of Largest Goes Rogue. BlackRock Launches Target-Date ETFs.

Over the past couple of years, I started getting more and more questions about diversifying portfolios with hedge fund strategies. One reason is fundamental – Equities and Bonds are not enough to protect your portfolio in the most severe downturns, especially in retirement. Period. The other is market driven. Today, Hedge Fund strategies are more easily accessible through ETFs, and a number of them even in UCITS format (although some are still in old-school Mutual Funds).

I refrained from talking extensively about Managed Futures in the past. I only mentioned my reservations.

The reason is not that the strategies are not helpful. They really are. The fundamental problem is a few key risks that no one talks about, particularly their promoters.

Today, let’s look at why running a backtest won’t solve them. And why the recent case of the second largest Managed Futures ETF is a warning sign of things you may run into if you go down this rabbit hole.

So you have read our comprehensive review of Interactive Brokers (affectionately abbreviated IBKR or even IB by its users) and you have decided to open an account. This guide will walk you through the steps of the process. In some ways, this broker account opening process can be longer than for other brokers. That’s because IBKR is more sophisticated. But, we make this process a bit simpler. In the end going through it is worth the hassle given the benefits the broker may give you in the long run. Let’s get started!