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Any thoughts on this ETF?...intrigued by return stacking and managed futures combo w/stocks but also not entirely comfortable with the black box aspect of it all...do like the diversifying aspect...do like the ETF format...
If you include the ticker and links to resources you have already reviewed, including a link to the fund site, you are likely to get optimal participation / responses.
Microsoft’s AI / Chat gpt offered up these (among other) observations. I’ve edited them a bit for brevity.
“The Return Stacked® U.S. Stocks & Managed Futures ETF (RSST) aims for long-term capital appreciation by investing in two complementary strategies: (1) U.S. Equity Strategy: This part of the fund seeks exposure to U.S. stocks. For every $1 invested, the fund aims to provide $1 of exposure to its U.S. equity strategy. (2) Managed Futures Strategy: The fund also invests in managed futures contracts. Again, for every $1 invested, it aims to provide $1 of exposure to its managed futures strategy.
Risk Factors:
Derivatives Risk: The use of derivatives (such as futures contracts) may carry more risk than other investments.
Commodity Risk: Investing in physical commodities can be extremely volatile.
Commodity-Linked Derivatives Tax Risk: Changes in legislation or regulations may affect the tax treatment of commodity-linked derivative instruments.
Foreign and Emerging Markets Risk
Leverage Risk: The fund uses leverage to stack the total return of its holdings in the U.S. equity strategy and managed futures strategy together.” -
Morningstar assigns RSST a “Negative” rating. While I own 1 or 2 of their “Neutral” rated funds, I’d probably steer clear of any having their rare Negative grade.
Morningstar cites high fees (which don’t look excessive to me) and high manager turnover along with a lack of manager experience operating this fund (which is apparently quite new). M* seems to think the methodology used (process) is suspect and cites momentum investing as one part of the process,
Lipper apparently doesn’t yet have enough data to rate RSST
BF, what do you plan to use the fund for? Buy and hold, trading, or something else?
Looking at the chart, I did not notice any diversifying aspects. It likely will be less volatile than SSO but more volatile than SPY.
I think a closer comparison would be BLNDX. I consider RSST a more aggressive/leveraged version of BLNDX. It should outperform it on the upside and underperform on the downside.
Comments
If you include the ticker and links to resources you have already reviewed, including a link to the fund site, you are likely to get optimal participation / responses.
“The Return Stacked® U.S. Stocks & Managed Futures ETF (RSST) aims for long-term capital appreciation by investing in two complementary strategies: (1) U.S. Equity Strategy: This part of the fund seeks exposure to U.S. stocks. For every $1 invested, the fund aims to provide $1 of exposure to its U.S. equity strategy. (2) Managed Futures Strategy: The fund also invests in managed futures contracts. Again, for every $1 invested, it aims to provide $1 of exposure to its managed futures strategy.
Risk Factors:
Derivatives Risk: The use of derivatives (such as futures contracts) may carry more risk than other investments.
Commodity Risk: Investing in physical commodities can be extremely volatile.
Commodity-Linked Derivatives Tax Risk: Changes in legislation or regulations may affect the tax treatment of commodity-linked derivative instruments.
Foreign and Emerging Markets Risk
Leverage Risk: The fund uses leverage to stack the total return of its holdings in the U.S. equity strategy and managed futures strategy together.”
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Morningstar assigns RSST a “Negative” rating. While I own 1 or 2 of their “Neutral” rated funds, I’d probably steer clear of any having their rare Negative grade.
Morningstar cites high fees (which don’t look excessive to me) and high manager turnover along with a lack of manager experience operating this fund (which is apparently quite new). M* seems to think the methodology used (process) is suspect and cites momentum investing as one part of the process,
Lipper apparently doesn’t yet have enough data to rate RSST
BF, what do you plan to use the fund for? Buy and hold, trading, or something else?
Looking at the chart, I did not notice any diversifying aspects. It likely will be less volatile than SSO but more volatile than SPY.