What's in store for you:

1. Photo From My Life
2. Financial Thought: Managed Futures
3. Life Thought: Consistency
4. Good Sh*t: Co-Working

Subscribe to this Newsletter

Photo From My Life:

Financial Thought:

Managed Futures: I was on a call recently with a handful of advisors I respect. At some point, the conversation shifted to managed futures. I'll be honest. It wasn't a strategy I had spent much time on. So I did my homework, and I wanted to share what I found. What's the TLDR? For the right individual, they could be an interesting addition to the portfolio.

Managed futures are strategies run by professional traders (called Commodity Trading Advisors, or CTAs) who buy and sell futures contracts across stocks, bonds, currencies, commodities, interest rates, etc. Most use systematic, trend following models to figure out where momentum is building or fading.

The key difference from your typical stock or bond fund is that they can go long and short, meaning they can profit whether markets are going up or down. Your average index fund only makes money when prices rise. Managed futures don't have that limitation.

So the real question, how do they actually perform?

When things got ugly, managed futures showed up. In 2008, the S&P 500 dropped roughly 37%. The SG CTA Index (a widely followed benchmark) was up about 13%. Some trend followers were up 30% or more. Every single CTA in the Societe Generale database posted a positive return that year.

Then there's 2022. The S&P 500 fell about 18%, and bonds didn't perform well. Managed futures? The SG CTA Index was up over 20%, its best year since the index launched in 2000.

But, this isn't a magic pill. In 2023, when the US equity markets were up 20%+, the SG CTA Index was down about 2.25%. When markets grind higher without much volatility, trend followers don't have as much to work with. Over the long haul, the index has returned roughly 4.8% annualized since 2000. So, the value in these investments isn't long-term returns, it's when those returns show up.

Importantly, it's worth calling out fees.

Managed futures are not cheap. ETFs have brought costs down to around 0.75% to 0.90%, which is meaningfully higher than a plain equity index fund, but reasonable for an active alternative strategy.

The question is whether the diversification benefit justifies the cost. No universal answer there.

So, when should you consider them?

Managed futures make the most sense as a diversifier, not a replacement for core holdings. If your portfolio is mostly stocks and bonds, adding something with genuinely low correlation can help smooth the ride. In 2022, a traditional 60/40 portfolio got hit from both sides. A managed futures allocation would have softened that blow.

That said, these strategies can underperform for extended stretches, the fees are real, and evaluating managers takes effort.

As you already know, none of this is a recommendation to invest in managed futures or any specific fund. Whether this strategy belongs in your portfolio depends on your financial situation, your goals, and your plan. That's a conversation to have with your advisor, not something to act on from a newsletter.

Life Thought:

Consistency: As I shared last year, I invested a good chunk of time creating a bucket list for myself. My wife very kindly turned the whole thing into a physical book. At the start of the year, I reviewed the list and picked out a few things I wanted to do in 2026. One of them was 100 push-ups a day for 100 days.

I know what you're thinking. Lamest bucket list item ever. I agree, but the alternative was "hold someone's hand while they die," and I wasn't interested in manifesting that one.

Anyway, I'm 11 days into the challenge, and it's been nothing short of amazing. Forced consistency. And the most surprising part? How quickly I've improved. On day one, I could barely string together 20 in a row. Now I'm knocking out 40. Ten days. That's it. I'm genuinely curious what I'll be capable of by day 100. A friend warned me I'll hit a plateau, and he's probably right. But a man can dream.

This is a perfect metaphor for life. When you're consistent at something, progress comes faster than you expect.

If you sit down and dedicate 30 to 60 minutes a day to a goal, you will improve sooner than you think, and that improvement will start to matter. A weekly newsletter sounded absurd when I launched it in 2021. Now over a thousand people (maybe) care what I have to say.

So whatever you're trying to achieve, take this as a sign of two things.

It takes less time than you think. You just have to be consistent.

My Recent YouTube Videos:

As I continue creating mediocre long-form video content, I thought I'd share the videos here. If any of these topics interest you, check out the videos or subscribe to my channel.

As I've shared before, I strongly prefer writing. But, I also like to challenge myself so I've decided to test video content as a way to improve my communication skills and as a way to potentially attract more people to my business.

I'm sure you can imagine the level of cringe I feel about this.

The Truth About Trump Accounts

​

Box Spread Lending Explained

​

10 Money Decisions That Build Real Wealth

​

Good Sh*t:

Co-Working: I’ve realized something about how I work best. I spend 90% of the week in my home office. So once a week, I force myself to leave.

I grab my laptop, head to a local coffee shop, and work from there for a few hours. Nothing revolutionary. There’s just enough noise, just enough movement, just enough friction to keep me engaged.

I’ve looked into co-working spaces before. In theory, they check all the boxes. Community, structure, a “work” environment outside the house. But for me, it's too much commitment. I don't want to drive 25 minutes to another desk.

So, the coffee shop hits the sweet spot. For the price of a coffee and a croissant, I get a great workspace, solid energy, and zero obligation. Hard to beat that.

But there is one place that does beat it.

The public library.

I had an hour to burn before grabbing my son at school and I stopped into our local library. It’s incredibly underrated. No purchase required.

If you haven’t been in a while, it’s worth checking out.

Disclaimer: VDB Wealth is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance is not indicative of future performance.

‍