Fidelity’s New Managed Futures ETF: Should Investors Be Paying Attention?

Fidelity’s new Managed Futures ETF—FFUT—is here, and yes, it’s worth talking about. I am not new to this game, and in my 12 years of experience, I’ve seen plenty of strategies come and go. But what’s interesting about Fidelity’s move is how they’re positioning this ETF as a liquid, accessible alternative to traditional diversification. They’re betting on trend-following, systematic long-short strategies that aim to deliver positive returns regardless of the market environment. That’s a bold claim, especially considering how volatile and unpredictable markets have been lately.

Why Managed Futures Matter

You know, people are embarrassed or ashamed to talk about money, but the truth is, you have to. Especially when it comes to managing risk. Fidelity’s managed futures ETF is designed to help investors do just that—manage risk without sacrificing liquidity. Unlike hedge funds, which often lock up capital and have high minimums, FFUT is commission-free for individual investors and financial advisors via Fidelity’s online platforms. That’s a big deal. It makes sophisticated strategies available to the everyday investor who’s tired of paying high fees for limited access.

Strategic Approach

And let’s move on—this isn’t just about access. Fidelity’s strategy is to use trend-following across multiple asset classes—equities, fixed income, currencies, commodities. It’s a kind of all-weather approach, designed to adapt to different market regimes. The goal? Capital appreciation, especially during equity market drawdowns. In other words, it’s about smoothing out the bumps—something every investor should value. I think maybe it’s a better idea to ask ourselves if we really have enough diversification in our current portfolios. This ETF aims to do that by adding a liquid alternative, which, frankly, is often missing from retail portfolios.

BTW! If you like my content, here you can see an article I wrote that might interest you: Deloitte's Investment Outlook 2025 Highlights Risks and Opportunities

By the way, they also say that Fidelity’s assets in alternative investments now total $41 billion. That’s a sizable chunk—more than enough to influence the landscape. The ETF platform itself includes 79 products with roughly $111 billion in assets under management. Fidelity isn’t just dabbling; they’re doubling down on innovation and diversification. So, I ask you: are you paying enough attention to the shifts happening in the ETF world? Because this move signals a bigger trend—more institutional-style strategies being made available to the masses, and that’s no small thing.

Should You Be Paying Attention?

Now, the question becomes—should you be paying attention? Well, if you’re serious about managing risk and diversifying beyond stocks and bonds, then yes. Fidelity’s actively managed futures ETF is positioned to perform across various environments. It’s not glamorous—these strategies aren’t flashy. But they carry out the purpose of real leverage: smoothing performance and capturing persistent trends. The expense ratio at 0.80% isn’t dirt cheap, but it’s competitive considering the quality of research and management behind it. You have to ask yourself—are you getting value for that fee? Or are you just chasing the latest shiny object?

The Challenges and the Environment

Certainly, these strategies are not without their challenges. Market swings, policy swings, and uncertainties loom. But that’s the environment we live in. Fidelity’s approach is to be systematic, disciplined, and data-driven—ingredients that matter when navigating choppy waters. I would like to discover more about how these strategies perform in the long run, but I do know this: offering portfolio diversification through liquid alternatives is a move that makes sense—if you understand what you’re paying for.

Implications for the Everyday Investor

So, what does this mean for the everyday investor? It means staying aware of the evolution happening in investment strategies and not just following the hype. It’s about applying these theories to your own financial planning—questioning whether your portfolio can withstand the next downturn without losing its teeth. Because, at the end of the day, money moves society whether we like it or not. I, personally, like it when I see options that help manage that movement rather than get run over by it.

And you? Are you paying enough attention? Are you ready to incorporate liquid alternatives like FFUT into your strategy? The choice is yours. Just remember—doing nothing is also a decision.

Miles Corbin

Investor and financial advisor for 12 years. I like to open the eyes of my clients and here I intend to do so with all of you who read The Domain Blog. I like to be on the cutting edge of everything related to the finance industry, investing, and financial planning and management in general. My goal is always to eliminate any hint of “guru” promises and to take a serious approach to industry news.