The managed futures space has a complexity problem. Managers charge more for elaborate strategies, but the ROI isn’t there. Some allocators assume complexity creates more alpha. The data says otherwise.

DBi ran the numbers across CTA ETFs and mutual funds. ETFs, simpler models with fewer moving parts and lower fees, have outperformed on both an absolute and risk-adjusted basis over three (2023-04-01 to 2026-03-31) and five years (2021-04-01 to 2026-03-31).

When it comes to managed futures, simplicity isn’t a weakness – it’s an efficiency edge. Goldman Sachs has reached a similar conclusion: longer-term models focused on major markets have outperformed. Lower fees mean more alpha stays with the client. Esoteric markets add costs that eat theoretical returns. Short-term models get whipsawed and knocked out of the trades that matter. And as Andrew Beer writes in Hedge Nordic, the gap isn’t closing. It’s widening.

Read the full article here: https://hedgenordic.com/2026/04/maybe-cta-alpha-is-simpler-than-you-think-evidence-from-the-etf-space/