RSIT delivers 100% international equity exposure plus 100% managed futures exposure in a single fund, effectively giving you $2 of market exposure for every $1 invested. It's designed for investors who want international diversification but don't want to sacrifice allocation space to add trend-following strategies.
How It Works
The fund achieves its 200% notional exposure through a combination of international equity swaps and futures contracts on commodities, currencies, and global stock indices. The managed futures sleeve follows price trends across multiple timeframes, going long or short based on momentum signals. This 'return stacking' approach uses derivatives efficiency to layer two distinct return streams without requiring leverage in the traditional sense.
Key Features
- Capital efficient design delivers two full allocations in one fund slot
- Managed futures component can profit from both rising and falling markets
- International equity exposure provides geographic diversification beyond US stocks
Risks
- Derivative-heavy structure could face severe losses if both strategies decline simultaneously
- Managed futures can underperform badly in choppy, trendless markets for extended periods
- Complex fund mechanics may behave unexpectedly during market stress or liquidity crunches
Who Should Own This
Best suited for sophisticated investors who understand derivatives and want to maximize portfolio efficiency without using margin. Works particularly well for those already sold on managed futures but unwilling to reduce their equity allocation to make room. Not appropriate for anyone uncomfortable with complexity or unfamiliar with how trend-following strategies work.