Alternative ETFs: Contrarian Flows Drive Inflows Amid Volatility Splits

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Weekly Channel Summary

The Alternative ETF channel, comprising 47 funds across 29 issuers, manages a total of $10 billion in assets. For the week ending December 5, 2025, the channel attracted $143 million in net inflows, a significant reversal from the $199 million in outflows seen over the trailing 30-day period. This recent capital injection brings the Year-To-Date (YTD) flow total to $3.8 billion, reinforcing a strong year for alternative strategies despite recent monthly volatility.

This Week’s Performance Leaders and Laggards

Performance this week was defined by the sharp divergence between volatility strategies. “Volatility – Short” funds capitalized on market conditions to return 1.89%, helping to pare down their YTD loss to -6.57%. Conversely, “Volatility – Long” strategies struggled, dropping -4.69% for the week, extending their deep YTD decline. Among the Absolute Return segments, “Absolute Return – Multi-Strategy” led the pack with a modest 0.49% gain, while Managed Futures dipped slightly into negative territory.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Multi-Strategy 0.49% -1.39% 1.59% 1.13% 2.68% 1.13%
Absolute Return – Event Driven 0.04% 0.13% 2.22% 3.93% 8.72% 9.04%
Absolute Return – Managed Futures -0.10% 1.81% 4.63% 8.32% 3.96% 5.17%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Short 1.89% 3.30% 4.47% -12.65% -6.57% -12.65%
Alternative: Volatility – Long -4.69% -9.33% -15.63% -38.72% -31.73% -28.24%

Top & Bottom 5 ETFs by Weekly Performance

The single best performer this week was the WZRD (Opportunistic Trader ETF), delivering an impressive 11.88% return. It was followed by the SVIX, a short volatility fund, which gained 4.42%. On the downside, long volatility products suffered the most, with the UVIX dropping -8.81% and QIS falling -7.23%, reflecting the painful drag on long vol strategies this week.

Top Performers
Ticker Fund Name WTD Performance
WZRD Opportunistic Trader ETF 11.88%
SVIX -1x Short VIX Futures ETF 4.42%
ZVOL Volatility Premium Plus ETF 2.40%
SVXY ProShares Short VIX Short-Term Futures ETF 2.22%
FAAR First Trust Alternative Absolute Return Strategy ETF 1.19%
Bottom Performers
UVIX 2x Long VIX Futures ETF -8.81%
QIS Simplify Multi-QIS Alternative ETF -7.23%
UVXY ProShares Ultra VIX Short-Term Futures ETF -6.34%
VIXI Defiance Enhanced Long Vol ETF -4.65%
VIXY ProShares VIX Short-Term Futures ETF -4.24%

Analyzing the Weekly Flows

The channel saw $143 million in total net inflows this week, driven by a notably contrarian move in the “Volatility – Long” category. Despite being the worst-performing segment, investors poured in $135 million, suggesting a significant hedging appetite or “buy the dip” mentality. Conversely, “Volatility – Short” funds saw outflows of $31 million, hinting at profit-taking after strong performance. Within the Absolute Return space, “Managed Futures” remained a bright spot, gathering $38 million in new assets.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Managed Futures 15 $4.4B $38M $79M $556M $1,756M $1,997M
Absolute Return – Multi-Strategy 11 $1.9B $1M $11M $287M $295M $444M
Absolute Return – Event Driven 9 $0.5B $1M $4M $10M ($11M) ($12M)

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Long 7 $1.9B $135M ($271M) ($297M) $2,241M $1,723M
Alternative: Volatility – Short 5 $1.3B ($31M) ($23M) ($96M) ($480M) ($422M)

Top & Bottom 5 ETFs by 5-Day Flow

The UVIX (2x Long VIX Futures ETF) was the undisputed leader in inflows, gathering $99 million—a remarkable 30.6% of its AUM in a single week despite poor performance. In contrast, the SVIX (-1x Short VIX Futures ETF) saw the largest exodus, shedding $29 million, or over 10% of its assets. SVOL also saw minor outflows of $2 million.

Inflows
Ticker Fund Name 5-Day Flow
UVIX 2x Long VIX Futures ETF $99M
DBMF IMGP DBi Managed Futures Strategy ETF $39M
VIXY ProShares VIX Short-Term Futures ETF $19M
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN $9M
UVXY ProShares Ultra VIX Short-Term Futures ETF $7M
Outflows
SVIX -1x Short VIX Futures ETF ($29M)
SVOL Simplify Volatility Premium ETF ($2M)
WTMF WisdomTree Managed Futures Strategy Fund ($2M)
IMF Invesco Managed Futures Strategy ETF ($2M)
HDG ProShares Hedge Replication ETF ($1M)

Issuer League Table Update

iM and Simplify continue to dominate the Alternative landscape, holding 20.32% ($2.01B) and 18.86% ($1.87B) of the market share, respectively. Volatility Shares was the standout winner for flows this week, gathering $70 million, while Simplify and WisdomTree sat at the bottom with slight outflows of around $2 million each.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $2.01B 20.32%
Simplify 3 $1.87B 18.86%
New York Life Investments 2 $1.08B 10.96%
ProShares 6 $1.00B 10.14%
iPath 2 $0.71B 7.22%

Top & Bottom 3 Issuers by 5-Day Flow

Inflows
Brand 5-Day Flow
Volatility Shares $70M
iM $39M
ProShares $26M
Outflows
Simplify ($2M)
WisdomTree ($2M)
Invesco ($2M)

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Disclosures

This material is for informational purposes only and should not be considered investment advice. All investments, including ETFs, involve risk, including the possible loss of principal. Investors should consider their investment objectives, risks, charges, and expenses carefully before investing.

This analysis was developed by the team at ETF Action. We leverage advanced AI tools to assist in the drafting and refinement of our content, based on our expert prompts, direction, and final review.