Bonds have felt like dead money for much of the decade, and some managers think it is time to rethink the traditional 60/40 portfolio. One argument is that managed futures, long a hedge fund staple, can balance stocks better than bonds when volatility rises. These strategies can go long and short across global markets, positioning early for turbulence and aiming for low correlation to both stocks and bonds. ETFs now package that approach in a low cost, liquid wrapper, and one prominent fund has delivered strong gains this year. Not everyone wants to ditch bonds, though. Skeptics note that fixed income still plays a diversifying role, that managed futures can go through stretches of underperformance, and that investors should understand how these funds interact with the rest of a portfolio. The balanced view: treat alternatives as a complement within a diversified mix rather than a wholesale replacement for the bond sleeve.

Finsum: The 60/40 is not broken so much as incomplete, and adding a nimble diversifier can make sense if investors have the patience to let it work through the quiet years as well as the crises.