I got excited when I saw this headline run across my screen, especially right after our post on ETFs people want to see. Unfortunately, it’s not true. It may be the world’s first CTA FOF ETF but there are already a number of CTA ETFs and ETNs out there (LSC, WDTI, etc). The biggest problem with this fund (listed on Deutsche Börse), is the fees. A whopping 1.1% fee on the ETF on top of 1.79% and 22% performance on the underlying funds. Goes along with all the academic research that shows CTAs do a great job in generating alpha, but take all of it (and more) in fees.
Hat Tip: Gokhan Kula