KMLM (KMLM)

The KraneShares Mount Lucas Managed Futures Ix Str ETF (KMLM) employs a systematic trend-following strategy across various asset classes to provide portfolio hedging benefits. It rebalances monthly and uses mechanical signals for diversification and risk management. Allocating a portion of a portfolio to KMLM could enhance performance, particularly in the current high interest rate and commodity price environment, offering an alternative to traditional short funds for managing tail risk.

The article provides a profile of the KMLM ETF, focusing on its dividend policy and recent performance. It explicitly states that KMLM does not pay dividends to its holders. The profile also indicates that price and NAV total returns for various periods are currently unavailable.

The KMLM ETF, managed by KraneShares, focuses on total return through long and short positions in commodity, currency, and global fixed income futures. It was launched on December 2, 2020, tracks the KFA MLM Index, and has an expense ratio of 0.90%. KMLM pays quarterly dividends, with its last dividend amounting to $1.30, marking an 82.35% increase from the previous quarter.

The KMLM ETF from KraneShares focuses on total returns through long and short positions in commodity, currency, and global fixed income futures. It utilizes a wholly-owned Cayman Island subsidiary for tax purposes and tracks the KFA MLM Index. The fund currently has $325.91 million in assets under management and offers a dividend yield of 4.50%.

KraneShares' "Behind the Ticker" podcast featured Jerry Prior, CIO of Managed Futures and COO at Mount Lucas, discussing the KMLM ETF and the MLM index's consistent sector weightings since 2005. Prior explained their rationale for maintaining bond, currency, and commodity weights, emphasizing being "roughly right" over being "precisely wrong" in an industry focused on optimization. The conversation also covered the index's construction, the effectiveness of its short side in 2022, and Mount Lucas's stance against volatility targeting in trend-following strategies.