The Upside of a Futures Contract

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Since inception, it has a return of 7.54%. And so the upside is you're going to get these profits generated by these strategies in these futures and they do seem to be reasonably profitable. The downsides are kind of unknown with respect to this because it has not been around that long. It could work just fine. But the proof will be in the pudding and there could be some serious drawdowns at some point,. Just on random factors. That's another little bit of a downside to this fund. All right, question number 5, which is the last one we'll do today.

In today's episode we answer some questions from Jason P. about setting up a risk-parity style portfolio at M1 and then follow up on our discussion of the Dragon Portfolio (Episode 53) with part one of an analysis of Managed Futures Fund DBMF.

Modified Golden Ratio Portfolio With SHY: Portfolio Visualizer Analysis (portfoliovisualizer.com)

David Stein's Ten Questions to Master Investing:

1. What is it?
2. Is it an investment, a speculation, or a gamble?
3. What is the upside?
4. What is the downside?
5. Who is on the other side of the trade?
6. What is the investment vehicle?
7. What does it take to be successful?
8. Who is getting a cut?
9. How does it impact your portfolio?
10. Should you invest?

DBMF Summary Fact Sheet: https://www.imgp.com/us/wp-content/uploads/2021/01/iM-DBi-Managed-Futures-Strategy-ETF-4Q20.pdf

DBMF Semi-Annual Report: https://www.imgp.com/us/wp-content/uploads/2020/09/IMDBIETF-Semiannual-f.pdf

DBMF Prospectus: https://www.imgp.com/us/wp-content/uploads/2021/02/im_dbi_etfs_prospectus.pdf