One of the best-performing categories in the exchange-traded fund industry in 2022 eclipsed a key milestone this week, as the iMGP DBi Managed Futures Strategy ETF (DBMF) topped $1 billion. assets under management. contracts to make large macro bets, is one of the best performing fund sectors in 2022. The sharp swings in equities and commodities like oil have created a kind of target-rich environment for hedge funds and other vehicles like ETFs that operate in this space. This, in turn, attracted investors who were desperate for a way to diversify their portfolios as stock and bond markets took a turn for the worse. The iMGP DBi fund, which is up about 33% year-to-date, has seen inflows of more than $900 million this year, according to FactSet. The fund is by far the largest managed futures ETF, according to VettaFi. The iMGP DBi ETF aims to serve as a sort of index fund that tracks the positions of a broad group of large managed futures hedge funds, according to Andrew Beer, founder and managing member of Dynamic Beta Investments and co-manager of the fund. Beer, who previously worked at Seth Klarman’s Baupost Group, said the purpose of the ETF is not to make its own macro calls but to aggregate hedge fund positions. It uses hedge fund performance data to derive positions likely to be held by large funds in key futures contracts, such as stocks, gold and oil. “They have models to decide if crude oil is going to go up or down. Our model shows how much crude oil they own or not,” Beer said. Prior to this year, the ETF’s hedge fund-like strategy and small size made it difficult to attract new investors, Beer said. “The early adopters of this ETF were guys who really liked this space but had bad experiences,” Beer said. The fund’s aim is to limit the manager-specific risk that could arise from investing in a traditional managed futures strategy and also to simplify the diversification process for financial advisers, Beer said. “It’s like you want emerging markets, you don’t want to pick one stock. You want space,” Beer said. The fund, which was launched in 2019, also posted positive returns in 2020 and 2021. It has a total expense ratio of 0.85%. Beer said its weekly rebalancing and focus on the largest, most liquid futures helps keep trading fees low.