Managed-futures mutual funds are quickly gaining traction, having tripled their AUM in the past year, but buyer beware, according
to the Wall Street Journal
The subset, which currently holds some $7 billion, now includes some 21 funds, including the Rydex/SGI Managed Futures Strategy
, with at least a dozen more awaiting regulators' approval. The subset has faired well in foul weather, having gained 10 percent in 2008 when the Standard & Poor's 500-stock index fell 37 percent.
However, futures offerings aren't required to fully divulge their investments and all their fees. Typically, they publish management fees totaling 200 to 300 basis points.
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