Andrew Beer recommends managed futures over bonds for better performance

Andrew Beer, co‑founder and managing member of DBi, told CNBC’s “ETF Edge” this week that bonds have been “dead money” for the past decade and that investors should consider adding managed futures to their portfolios. Beer highlighted the iMGP DBi Managed Futures Strategy ETF (DBMF) as a low‑cost, liquid vehicle that mimics the performance of top hedge‑fund managed futures programs. The ETF has already posted a 19% gain for the year, according to FactSet data, prompting Beer to question the continued relevance of a 60/40 stocks‑to‑bonds allocation.

The shift comes amid rising market volatility driven by debt‑level concerns and rapid developments in artificial intelligence. Traditional bonds, which have historically served as a stabilising force, have struggled to keep pace with equity markets and have become less effective as a hedge. Managed futures, by contrast, can take long and short positions across global markets, positioning investors ahead of turbulent events. Beer argues that such strategies offer a low correlation to both stocks and bonds, making them a potentially superior counterbalance during crises.

While Beer champions managed futures, industry analysts caution against abandoning bonds entirely. Nate Geraci, president of NovaDius Wealth Management, said fixed‑income remains a challenging area but still essential for diversification. Geraci stresses that alternatives like managed futures should fit within a broader portfolio that includes stocks and bonds, and that investors must understand how these strategies interact over time. He notes that managed futures can outperform in volatile periods but also experience underperformance, so a long‑term perspective is crucial.

The debate underscores a broader reevaluation of strategic asset allocation. As investors grapple with a changing risk landscape, the managed futures approach offers a modern twist on traditional diversification. Whether it will replace bonds or simply complement them remains to be seen, but the growing interest in such alternatives signals a shift toward more dynamic, low‑correlation assets in pursuit of steadier returns.