Futures ETF (Futures Exchange-Traded Fund)

A type of investment fund that invests primarily in futures contracts, which are agreements to buy or sell assets at a predetermined price on a future date, providing investors with exposure to the performance of the underlying assets without directly owning them.

What You Need To Know

While they offer accessibility and liquidity, they also come with unique risks such as tracking errors, rolling costs, and volatility due to their reliance on futures contracts.