The Effects of the Asset Correlation Analysis on Your Portfolio

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It has lower negative correlations to all of the other types of assets that we ordinarily find in our risk parity style portfolios. It's annualized returns so far are about 6.42%, which is not great, but it also does seem to have a lower volatility than these other funds. So it has a relatively lower volatility and should make the overall portfolio less volatile.

In this episode we discuss a "guest request" email I received and complete our analysis of the managed futures fund DBMF that we began in Episode 55.

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?

Links:

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

Asset Correlation Matrix for DBMF: https://www.portfoliovisualizer.com/asset-correlations?s=y&symbols=DBMF%2C+VTI%2C+TLT%2C+GLD%2C+PDBC&timePeriod=2&tradingDays=60&months=36