DBi's Andrew Beer argues bonds have been 'dead money for the entire decade' and that investors should consider managed futures exposure in place of part of their bond allocation in a 60/40 portfolio. He says managed futures ETFs can go long and short across global markets, have low correlation to stocks and bonds, and can perform well in crises. As of Thursday's close, the iMGP DBi Managed Futures Strategy ETF (DBMF), which he helps manage, was up almost 19% so far this year, according to FactSet. NovaDius Wealth Management's Nate Geraci counters that bonds still diversify a portfolio, that alternatives should fill only a slice of it, and that these funds can underperform for long stretches.
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Original headline: 'Dead money’ for a decade: Why this hedge fund approach may deliver an advantage over bonds
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