At a glance
FMF charges 0.98% a year. It has $272.3M in assets; it paid 4.77% of its price in distributions over the past 12 months, quarterly. Over the past year it returned +12.4% with distributions reinvested (S&P 500: +11.5%); over three years it returned +6.7% a year. At its worst it fell 3.6% in the 2020 crash (S&P 500: 33.7%) and 10.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high within a month and 38 months after the lows.
The short version
First Trust Managed Futures Strategy Fund (FMF) is an actively managed ETF. It trades futures contracts on stock indexes, currencies and government bonds, and on commodities through a Cayman Islands subsidiary. Its aim is returns that don't move with stock or bond markets. It can bet on prices falling as well as rising, and it gained 14% during the 2022 bear market. The trade-offs are a 0.98% expense ratio and a modest long-run record.
Price history
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FMF +12.4% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| FMF official prospectus, to Dec 31, 2025 | — | +4.04% | — | +4.31% | +1.56% | +1.32% |
| FMF price data to Oct 27, 2026 | +12.4% | +12.4% | +6.7% | +5.3% | +3.0% | +2.3% |
- Over the year to Oct 27, 2026, FMF returned +12.4%.
- Its 5-year annualized return was +5.3% and its 10-year +3.0%.
- In the 2020 COVID crash it fell 3.6% and regained its old high 0.6 months after the low.
- Its worst full calendar year was 2019 (-5.2%); its best was 2024 (+8.2%).
- The deepest fall in its price history was 20.3% (Apr 2, 2014 to Mar 24, 2020), recovered by Mar 7, 2022.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.4% | — |
| 2025 | +4.5% | +4.04% |
| 2024 | +8.2% | +8.17% |
| 2023 | -0.2% | +0.13% |
| 2022 | +5.2% | +5.52% |
| 2021 | +3.6% | +3.88% |
| 2020 | +5.7% | +4.87% |
| 2019 | -5.2% | -4.54% |
| 2018 | -2.6% | -3.13% |
| 2017 | +1.7% | +1.84% |
| 2016 | -4.1% | -4.29% |
| 2015 | -0.7% | — |
| 2014 | +0.4% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 0.9% over that stretch · deepest drop along the way 3.6%, back to its old high 0.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 14% over that stretch · deepest drop along the way 10.2%, back to its old high 38.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.6500 | |
| 2025 | $2.6300 | +13.9% |
| 2024 | $2.3100 | +62.7% |
| 2023 | $1.4200 | +639.6% |
| 2022 | $0.1920 | -87.1% |
| 2021 | $1.4901 | +14801.0% |
| 2020 | $0.0100 | -97.8% |
| 2019 | $0.4500 | -36.6% |
| 2018 | $0.7100 | +82.1% |
| 2017 | $0.3900 | -67.7% |
| 2014 | $1.2058 |
What's inside
As of Jun 30, 2026, the fund held 4 securities; the ten largest made up 34.76% of assets, and 57.11% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 10.99% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 9.17% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 7.31% | |
| UNITED STATES OF AMERICA - BUREAU OF THE PUBLIC DEBT Bonds and notes | 7.30% |
By country
United States 34.76%By issuer
US Treasury 34.76%The bonds mature in 0.1 years on average (weighted by size), with an average coupon of 0%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $22.9M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.96%, -0.29%, -2.39%.
What it really costs
- FMF charges 0.98% a year.
- Of that, 0.95% is the management fee; the rest covers other fund expenses.
In a retirement portfolio
FMF's one-year beta was 0.16 as of October 27, 2026, and it gained during the 2022 bear market, so its main use is behaving differently from stocks and bonds.
FMF's one-year beta was 0.16 as of October 27, 2026. That means it moved little with the stock market. During the 2022 bear market it returned 14%. In the 2020 COVID crash it slipped just 0.9% and recovered within weeks. It launched in 2013, so it has no 2008 record. The weak spot is long dry spells. From April 2014 to March 2020 it fell 20.3%, then took almost two more years to recover. A 10.2% drop that began in mid-2022 took about 38 months to make back. Its worst calendar year was 2019, a 4.54% loss. Selling shares during a stretch like that would lock in losses.
The fund paid 4.77% over the 12 months to October 27, 2026, in quarterly distributions. It charges 0.98% a year. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting a holding that moved little with stocks (one-year beta of 0.16) and gained 14% during the 2022 bear market.
- People comfortable with an active manager making long and short futures bets, including commodities held through a Cayman Islands subsidiary.
- Those who want quarterly distributions; the trailing 12-month yield was 4.77% as of October 27, 2026.
Look elsewhere if
- Cost-conscious investors: the expense ratio is 0.98%, and the fund returned 1.56% a year over the 10 years to December 31, 2025.
- Anyone needing steady progress: the fund fell 20.3% from April 2014 to March 2020, then took almost two years to recover.
- Investors wanting simple holdings: leveraged futures, commodity pool rules and cash-only redemptions make it complex and possibly less tax-efficient.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
No close alternatives found.
Questions investors ask
Does FMF go up when stocks fall?
Sometimes, but not reliably. In the 2022 bear market, FMF returned 14% while stocks fell from their January 3 peak to their October 12 low. In the 2020 COVID crash, it slipped 0.9% while the market fell. Its beta, a measure of how closely it moves with stocks, was 0.16 for the year to October 27, 2026. FMF can still fall on its own. It dropped 10.2% between June and August 2022 and took about 38 months to recover.
Does FMF pay dividends?
Yes. FMF pays distributions quarterly. In the year to October 27, 2026, it paid about $2.49 per share, a trailing yield of 4.77%. A trailing yield is the past year's payouts divided by the share price. The fund isn't built mainly for income, though. Its goal is positive returns from trading futures. Its payouts aren't fixed, so they may rise or fall from year to year.
What is FMF's expense ratio?
FMF's expense ratio is 0.98% a year, according to its prospectus filed April 30, 2026. Of that, 0.95% is the management fee paid to First Trust. That is well above what most broad stock or bond index funds charge, and it reflects active trading across dozens of futures markets. The prospectus also notes that frequent trading may raise trading expenses, which are paid on top of the expense ratio. All of these costs come out of the fund's returns rather than being billed separately.
How has FMF performed over the last 10 years?
Modestly. As of December 31, 2025, FMF's average annual return was 1.56% over 10 years and 4.31% over five years, according to its prospectus. Results vary from year to year. It lost money in 2016, 2018 and 2019. It then gained every year from 2020 through 2025, and its strongest year was 2024, at 8.17%. Based on market prices, it was up 12.4% in 2026 through October 27. Past results don't predict future returns.
Can you lose money in FMF?
Yes. The prospectus states plainly that investors could lose money, and leverage adds to the risk. The combined value of the assets its futures track can be larger than the fund's total assets. The prospectus warns this could cause the fund to lose more than it originally invested. FMF's deepest decline was 20.3%, from April 2014 to March 2020, and it did not fully recover until March 2022. Its worst quarter, which ended December 31, 2018, lost 8.01%.