(RSBT) Return Stacked Bonds - Ratings and Ratios

The Return Stacked Bonds & Managed Futures ETF (BATS:RSBT) is an actively managed fund that employs a dual strategy to achieve its investment objective. By combining a bond strategy with a managed futures strategy, the fund aims to generate returns from both fixed income and commodity/currency markets. The use of leverage allows the fund to stack returns, potentially amplifying gains, but also increasing the risk of losses.

The funds investment approach is centered around allocating at least 80% of its net assets, plus borrowings, to the two strategies. The bond strategy likely focuses on fixed income securities, providing a relatively stable source of returns, while the managed futures strategy involves investing in futures contracts, potentially across various asset classes, including commodities, currencies, and indices. This diversification can help spread risk and potentially capitalize on trends in different markets.

Given the funds non-diversified nature, its crucial to monitor its holdings and strategies closely, as performance can be more heavily influenced by individual investments. With an AUM of $83.82M USD, the fund has a relatively modest size, which may impact its liquidity and trading dynamics.

From a technical perspective, the funds price is currently below its short-term and long-term moving averages (SMA20, SMA50, and SMA200), indicating a downtrend. The Average True Range (ATR) of 0.23, or 1.50%, suggests moderate volatility. Considering the 52-week high and low, the funds price is near its lower end, potentially indicating a support level around $15.45.

Forecasting based on the available technical and fundamental data, its possible that the fund may continue to face downward pressure in the short term, given its current trend and positioning relative to its moving averages. However, if the managed futures strategy performs well, potentially due to trends in commodity or currency markets, this could help offset some of the downward pressure on the funds price. A break above the SMA20 at $15.82 could be a positive indicator, potentially leading to further gains towards the SMA50 at $16.21. Conversely, a failure to hold above $15.45 could lead to further declines.