Portfolio Manager Insights

Redefining a futures strategy for a more dynamic market

In today’s rapidly shifting market environment, some traditional trend-following strategies can face challenges identifying and adapting to changes in direction, but an approach that utilizes multiple input signals may improve trend evaluation, according to Fidelity’s Roberto Croce.

By: Roberto Croce
Updated: 7/20/2026
  • Fidelity Portfolio Manager Roberto Croce says because market trends can be unpredictable, incorporating multiple input signals into a managed futures strategy can help identify emerging trends and assess whether they are strengthening, weakening or pivoting – potentially improving investor outcomes.
  • “Many traditional trend-following strategies are built to capture extended directional moves,” explains Croce, who manages Fidelity Managed Futures ETF. “But markets can stall, reverse abruptly, or shift direction in ways that make trends harder to interpret in real time, as we’ve seen from market moves so far in 2026.”
  • The actively managed ETF, launched in June 2025, seeks to provide investors with portfolio diversification and strong returns, particularly during prolonged periods of market stress. The strategy aims to capture the persistence of price trends – both upward and downward – by taking long and short positions in futures contracts across equity, fixed income, currency and commodity markets.
  • Croce says many managed futures strategies rely on a single return driver: trend-following, or seeking to profit from markets that are persistently higher or lower. While this approach can be effective, he believes it also can involve trade-offs. 
  • “When trends are strong, such as during a sustained rally or prolonged drawdown, these strategies can perform well,” he says. “But markets don’t always move in a straight line, and in more volatile or rapidly changing environments, recognizing when trends are forming or beginning to reverse can be just as important as capturing them.”
  • Rather than relying on a single set of signals, Fidelity Managed Futures ETF incorporates multiple inputs to help improve trend identification and assess potential direction. The goal is to enhance the strategy’s ability to participate in trends while also navigating transitions between market regimes and balancing exposures across varying market conditions. 
  • Croce believes this approach still captures the core benefit of a managed futures strategy – systematically following trends across global markets – while incorporating additional layers designed to refine signal quality and balance different sources of return, including defensive positioning and income generated from holding positions.
  • “This isn’t about replacing trend-following,” Croce notes. “It’s about enhancing how trends are identified and combining that insight with other inputs that can help balance the strategy throughout different environments.”
  • The fund applies signals across a broad range of futures markets, helping the managers to respond dynamically as market conditions evolve. Positions are adjusted regularly based on model inputs, with risk managed across markets and exposures.
  • Croce adds that combining multiple inputs through a systematic implementation process may help deliver a more consistent experience over time, while preserving the potential diversification benefits that have made managed futures strategies a compelling complement to traditional portfolios.
  • “For investors, the distinction of having multiple inputs is subtle but important, particularly in today’s more dynamic market environment,” says Croce. “It’s not just about being in the trend – it’s about identifying it early and adapting as it evolves.”
Featured Fund

Fidelity Managed Futures ETF (FFUT)

Seeks capital appreciation.

View fund
Explore more on:
Active management Alternatives Equity ETFs Fixed income Liquid alternatives

Related insights

View all
Portfolio Manager Insights
A different−and potentially more effective−portfolio diversifier for today's market
With stocks and bonds increasingly moving in tandem and inflation still elevated, Fidelity’s Roberto Croce says a managed futures strategy could enhance portfolio diversification and provide exposure to inflation-driven market trends.
Portfolio Manager Insights
Why I'm investing in alternative asset managers
Fidelity’s Mark Notkin believes companies focused on alternative investments, including private equity, private credit and other specialized strategies, look particularly attractive.
Portfolio Manager Insights
Minimizing emotion, maximizing technology in investing
Fidelity’s Shashi Naik blends quantitative portfolio management with active investment oversight, using technology to help reduce emotion-driven decisions.
Commodity interest trading involves substantial risk of loss. Past performance is no guarantee of future results.

For specific fund information such as standard performance and holdings, please go to the "Funds Managed" link on this page.

Investment decisions should be based on an individual’s own goals, time horizon, and tolerance for risk. Nothing in this content should be considered to be legal or tax advice, and you are encouraged to consult your own lawyer, accountant, or other advisor before making any financial decision. These materials are provided for informational purposes only and should not be used or construed as a recommendation of any security, sector, or investment strategy.

Fidelity does not provide legal or tax advice and the information provided herein is general in nature and should not be considered legal or tax advice. Consult with an attorney or a tax professional regarding your specific legal or tax situation.

Past performance and dividend rates are historical and do not guarantee future results.

Investing involves risk, including risk of loss.

Diversification does not ensure a profit or guarantee against loss.

Sector funds can be more volatile because of their narrow concentration in a specific industry. Growth stocks can perform differently from other types of stocks and the market as a whole and can be more volatile than other types of stocks. Value stocks can perform differently than other types of stocks and can continue to be undervalued by the market for long periods of time. • Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. • Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. • In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation, credit, and default risks for both issuers and counterparties. • Lower-quality bonds can be more volatile and have greater risk of default than higher-quality bonds. • Floating-rate loans may not be fully collateralized and therefore may decline significantly in value. • The municipal market is volatile and can be significantly affected by adverse tax, legislative, or political changes, and the financial condition of the issuers of municipal securities. • The securities of smaller, less well-known companies can be more volatile than those of larger companies. • The funds can invest in securities that may have a leveraging effect (such as derivatives and forward-settling securities) that may increase market exposure, magnify investment risks, and cause losses to be realized more quickly. • Leverage can magnify the impact of adverse issuer, political, regulatory, market, or economic developments on a company. In the event of bankruptcy, a company’s creditors take precedence over the company’s stockholders. Although the companies that the fund invests in may be highly leveraged, the fund itself does not use leverage as an investment strategy. Changes in real estate values or economic downturns can have a significant negative effect on issuers in the real estate industry. In the event of bankruptcy, a company’s creditors take precedence over the company’s stockholders. Third-party marks are the property of their respective owners; all other marks are the property of FMR LLC.

1080901.36
069CBB14290D4B789CA550587A2C0A6B