Portfolio Manager Insights

A different−and potentially more effective−portfolio diversifier for today's market

With stocks and bonds increasingly moving in tandem and inflation still elevated, Fidelity’s Roberto Croce says a managed futures strategy could enhance portfolio diversification and provide exposure to inflation-driven market trends.

By: Roberto Croce
Updated: 7/13/2026
  • During the past couple of years, as stocks and bonds have provided less portfolio diversification than they historically have, managed futures have emerged as an alternative investment strategy with the potential to improve diversification in traditional portfolios, according to Fidelity Portfolio Manager Roberto Croce.
  • “Many investors are looking beyond traditional assets for strategies that can both diversify risk and adapt to changing market conditions,” says Croce, who oversees Fidelity® Managed Futures ETF. “As a managed futures strategy, the fund offers a differentiated return profile that is not dependent on stocks or bonds moving higher, which we believe makes it a powerful diversifier.”
  • The actively managed ETF, launched in June 2025, seeks to provide investors with portfolio diversification and strong returns, particularly during prolonged periods of market stress. The strategy aims to capture persistent price trends – both up and down – by taking long and short positions in futures contracts across equity, fixed income, currency and commodity markets.
  • Because the ETF can take both long and short positions, it is designed to perform across a range of market environments, including periods when traditional asset classes are under pressure, Croce says.
  • “Historically, the value of owning this type of alternative investment has been most evident during periods of market stress, when sustained trends created opportunities even as traditional portfolios struggled,” he explains.
  • Another potential advantage is inflation protection, a timely consideration given that elevated prices remain an ongoing concern in the United States. By dynamically allocating to commodities such as energy, metals and agriculture, the strategy may help capture inflation-driven trends that can be difficult for traditional assets to access, according to Croce.
  • “This combination of low correlation to stocks and bonds, along with exposure to inflation-sensitive markets, has made managed futures strategies a compelling complement to a traditional balanced portfolio of 60% equities/40% bonds, with even modest allocations historically helping reduce volatility and drawdowns,” he says.
  • Supporting the ETF’s approach are Fidelity’s systematic research capabilities across asset classes, combined with trading expertise that helps efficiently implement managed futures and other liquid alternatives strategies for investors.
  • “In an environment where diversification is becoming harder to achieve, we believe strategies that can adapt to different market regimes can play an increasingly important role in building more-resilient portfolios,” Croce concludes.
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Fidelity Managed Futures ETF (FFUT)

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