Managed Futures Dominate as Alternative ETFs Hit $10.5B

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Weekly Channel Summary

The Alternative ETF landscape remains a concentrated but dynamic segment, currently comprising 46 ETFs across 28 brands with a total of $10.5 billion in assets under management (AUM). Over the past week, the channel attracted $10 million in net new money, contributing to a year-to-date (YTD) inflow total of $227 million. This steady interest builds upon a robust trailing 12-month period that saw the category pull in $3.37 billion, primarily driven by the expansion of managed futures and volatility-linked strategies. While weekly flows were modest compared to the previous month’s pace, the long-term trend underscores a persistent appetite for non-correlated return streams in a volatile market environment.

This Week’s Performance Leaders and Laggards

Performance this week was characterized by a distinct divergence between volatility-themed products and absolute return strategies. The Volatility – Short category posted a gain of 1.28%, effectively reversing its negative YTD trend of -4.07%. Conversely, the Volatility – Long category slumped -2.93% for the week, though it remains up 5.17% for the year. Within the broader Absolute Return space, the Multi-Strategy category led the pack with a weekly return of 2.47%, followed closely by Managed Futures at 1.62%.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Multi-Strategy 2.47% 0.65% 2.25% 3.02% 1.58% 5.35%
Absolute Return – Managed Futures 1.62% 3.33% 9.96% 15.17% 6.45% 12.24%
Absolute Return – Event Driven 0.66% 0.21% 1.22% 3.36% 0.66% 8.04%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Short 1.28% 0.54% 14.43% 10.56% -4.07% -8.21%
Alternative: Volatility – Long -2.93% -4.21% -28.61% -27.81% 5.17% -31.00%

Top & Bottom 5 ETFs by Weekly Performance

The individual leaderboard was topped by the Opportunistic Trader ETF (WZRD), which soared 17.09% for the week, making it a significant outlier within the Absolute Return space. On the downside, leveraged long volatility products suffered heavy losses; the 2x Long VIX Futures ETF (UVIX) plummeted -6.52%, while the ProShares Ultra VIX Short-Term Futures ETF (UVXY) shed -4.45%, reflecting a crushing week for long-volatility bulls.

Ticker Fund Name WTD Performance
Top Performers
WZRD Opportunistic Trader ETF 17.09%
CTA Simplify Managed Futures Strategy ETF 2.89%
SVIX -1x Short VIX Futures ETF 2.75%
SCLS Stoneport Advisors Commodity Long Short ETF 2.52%
WTIP WisdomTree Inflation Plus Fund 2.43%
Bottom Performers
UVIX 2x Long VIX Futures ETF -6.52%
UVXY ProShares Ultra VIX Short-Term Futures ETF -4.45%
VIXY ProShares VIX Short-Term Futures ETF -2.92%
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN -2.88%
VIXM ProShares VIX Mid-Term Futures ETF -0.40%

Analyzing the Weekly Flows

Investor behavior this week was somewhat contrarian, specifically in the volatility segment. Despite the Alternative: Volatility – Long category being the week’s worst performer, it experienced the largest net outflow of -$34 million, suggesting investors are cutting bait rather than “buying the dip.” In contrast, the Managed Futures category remained the flow engine of the channel, pulling in $47 million this week. This suggests a “performance-chasing” mentality, as Managed Futures continue to be the strongest-performing alternative category over the trailing 6-month and 1-year periods. Overall, the Absolute Return categories combined for a healthy $51 million in net inflows.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Managed Futures 15 $5.4B $47M $258M $729M $434M $2,034M
Absolute Return – Multi-Strategy 11 $1.9B $7M $12M ($41M) $10M $251M
Absolute Return – Event Driven 9 $0.5B ($3M) ($15M) ($4M) ($17M) $27M

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Short 5 $1.1B ($7M) $2M ($112M) ($51M) ($329M)
Alternative: Volatility – Long 6 $1.6B ($34M) ($137M) $119M ($148M) $1,382M

Top & Bottom 5 ETFs by 5-Day Flow

The IMGP DBi Managed Futures Strategy ETF (DBMF) was the undisputed leader in weekly inflows, gathering $44 million, which represents 1.76% of its total AUM. This inflow further cements its position as the largest Alternative ETF. Conversely, the 2x Long VIX Futures ETF (UVIX) and the ProShares Short VIX Short-Term Futures ETF (SVXY) saw the largest outflows, shedding -$31 million and -$10 million, respectively, as traders rotated out of volatility positioning.

Ticker Fund Name 5-Day Flow
Inflows
DBMF IMGP DBI Managed Futures Strategy ETF $44M
UVXY ProShares Ultra VIX Short-Term Futures ETF $7M
SVOL Simplify Volatility Premium ETF $4M
LALT First Trust Multi-Strategy Alternative ETF $4M
KMLM KraneShares Mount Lucas Managed Futures Index Strategy ETF $3M
Outflows
UVIX 2x Long VIX Futures ETF ($31M)
SVXY ProShares Short VIX Short-Term Futures ETF ($10M)
VIXY ProShares VIX Short-Term Futures ETF ($4M)
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN ($4M)
MNA NYLI Merger Arbitrage ETF ($4M)

Issuer League Table Update

The issuer landscape is dominated by iM and Simplify, who together control nearly 44% of the Alternative ETF market. iM holds the top spot with a 24.41% market share ($2.55B AUM), while Simplify follows with 19.23% ($2.01B AUM). This week, iM led all issuers with $44 million in net inflows, whereas Volatility Shares saw the largest net outflows at -$31 million, primarily due to the rotation out of leveraged long-volatility exposure.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $2.55B 24.41%
Simplify 3 $2.01B 19.23%
New York Life Investments 2 $1.03B 9.87%
ProShares 6 $0.87B 8.36%
iPath 2 $0.62B 5.92%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iM $44M
Simplify $4M
First Trust $4M
Outflows
Volatility Shares ($31M)
ProShares ($8M)
iPath ($4M)

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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.