Copper and the S&P 500® have tracked each other quite closely during the past 16 months, both falling sharply at the outset of the pandemic only to rebound spectacularly. The S&P 500 is up about 30% from pre-pandemic levels while copper has outperformed, rising over 60% (Figure 1).
There is a risk of loss in trading futures. Futures trading is not suitable for all persons. While managed futures can help enhance returns and reduce risk, they can also result in further losses in a portfolio.
Studies conducted of manage futures as a whole may not be indicative of the performance of any individual CTA or CTA index.
A CTA index may not represent the entire universe of CTA’s, and in most cases, individuals cannot invest in these indices. The actual rates of CTA returns may be significantly different and more volatile than those of a CTA index.