Weekly Channel Summary
The Alternative ETF channel continues to command a significant footprint with $10B in total assets under management across 47 unique ETPs and 29 distinct issuers. This week, the channel saw net inflows of $40M, adding to a strong year-to-date haul of $3.84B and a 1-year total of $3.55B. This positive momentum highlights continued investor interest in alternative strategies, particularly as volatility dynamics shift.
This Week’s Performance Leaders and Laggards
Performance within the volatility complex displayed a sharp divergence this week. “Volatility – Short” strategies capitalized on market conditions, delivering a solid return of 1.86%, while “Volatility – Long” strategies struggled significantly, declining by -3.55%. Despite this week’s gain, Short Volatility remains down -6.94% YTD, whereas Long Volatility is down -33.66%. Among the Absolute Return categories, Managed Futures led the pack with a modest 0.20% weekly return.
Absolute Return Category Performance
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Absolute Return – Managed Futures | 0.20% | 0.19% | 4.17% | 8.74% | 4.26% | 4.27% |
| Absolute Return – Event Driven | 0.18% | 0.02% | 2.77% | 3.48% | 8.84% | 9.12% |
| Absolute Return – Multi-Strategy | -0.12% | -0.51% | 3.05% | 8.32% | 7.93% | 6.38% |
Volatility Category Performance
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Alternative: Volatility – Short | 1.86% | 5.18% | 3.14% | 24.06% | -6.94% | -13.91% |
| Alternative: Volatility – Long | -3.55% | -10.82% | -13.57% | -38.96% | -33.66% | -30.63% |
Top & Bottom 5 ETFs by Weekly Performance
The single best-performing ETF this week was the SVIX (-1x Short VIX Futures ETF), which surged 3.47%. This directly corresponds to the strength seen in the broader Short Volatility category. Conversely, the two worst performers were the UVIX (2x Long VIX Futures ETF) and UVXY (ProShares Ultra VIX Short-Term Futures ETF), which fell -7.44% and -5.61% respectively, highlighting the pain felt in leveraged long volatility strategies.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| SVIX | -1x Short VIX Futures ETF | 3.47% |
| SVXY | ProShares Short VIX Short-Term Futures ETF | 1.87% |
| ZVOL | Volatility Premium Plus ETF | 1.34% |
| KMLM | KraneShares Mount Lucas Managed Futures Index Strategy ETF | 1.32% |
| IMF | Invesco Managed Futures Strategy ETF | 1.06% |
| Bottom Performers | ||
| UVIX | 2x Long VIX Futures ETF | -7.44% |
| UVXY | ProShares Ultra VIX Short-Term Futures ETF | -5.61% |
| VIXY | ProShares VIX Short-Term Futures ETF | -3.70% |
| VXX | iPath Series B S&P 500 VIX Short-Term Futures ETN | -3.68% |
| FAAR | First Trust Alternative Absolute Return Strategy ETF | -2.75% |
Analyzing the Weekly Flows
Investors allocated a total net flow of $40M into the channel this week, with distinct behavior observed in the volatility segments. The “Volatility – Long” category attracted the most significant capital with $60M in inflows. Given the category’s negative weekly performance, this activity suggests a contrarian stance where investors are buying into the dip. Conversely, the “Volatility – Short” category saw the largest outflows of -$25M, indicating profit-taking amidst positive performance. Flows into Absolute Return strategies were mixed, with Multi-Strategy funds gaining $10M while Managed Futures saw minor outflows of -$6M.
Absolute Return Category Flows
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Absolute Return – Multi-Strategy | 11 | $1.9B | $10M | ($3M) | $300M | $306M | $388M |
| Absolute Return – Event Driven | 9 | $0.5B | SOM | $1M | $12M | ($11M) | ($12M) |
| Absolute Return – Managed Futures | 15 | $4.4B | ($6M) | $65M | $547M | $1,750M | $1,916M |
Volatility Category Flows
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Alternative: Volatility – Long | 7 | $1.8B | $60M | ($118M) | ($259M) | $2,301M | $1,687M |
| Alternative: Volatility – Short | 5 | $1.2B | ($25M) | $14M | ($88M) | ($505M) | ($432M) |
Top & Bottom 5 ETFs by 5-Day Flow
The UVXY, a long volatility fund, was the top asset gatherer this week, pulling in $26M representing over 6% of its AUM. This aligns with the broader theme of contrarian positioning in the long volatility space. On the other end, the DBMF (IMGP DBi Managed Futures Strategy ETF) and SVOL (Simplify Volatility Premium ETF) saw the largest exits, with outflows of ($19M) and ($18M) respectively.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| UVXY | ProShares Ultra VIX Short-Term Futures ETF | $26M |
| UVIX | 2x Long VIX Futures ETF | $21M |
| WTMF | WisdomTree Managed Futures Strategy Fund | $10M |
| QAI | NYLI Hedge Multi-Strategy Tracker ETF | $8M |
| VIXY | ProShares VIX Short-Term Futures ETF | $7M |
| Outflows | ||
| DBMF | IMGP DBi Managed Futures Strategy ETF | ($19M) |
| SVOL | Simplify Volatility Premium ETF | ($18M) |
| SVIX | -1x Short VIX Futures ETF | ($8M) |
| AHLT | American Beacon AHL Trend ETF | ($3M) |
| QALT | SEI DBI Multi-Strategy Alternative ETF | ($1M) |
Issuer League Table Update
iM and Simplify continue to dominate the landscape, holding 20.46% ($2.01B) and 18.64% ($1.83B) of the market share respectively. In terms of recent activity, ProShares led the way with the most weekly inflows, gathering $33M, while iM faced the largest headwinds, seeing outflows of ($19M).
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| iM | 1 | $2.01B | 20.46% |
| Simplify | 3 | $1.83B | 18.64% |
| New York Life Investments | 2 | $1.10B | 11.22% |
| ProShares | 6 | $0.98B | 10.03% |
| iPath | 2 | $0.68B | 6.91% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| ProShares | $33M |
| Volatility Shares | $13M |
| WisdomTree | $10M |
| Outflows | |
| iM | ($19M) |
| Simplify | ($18M) |
| American Beacon | ($3M) |
For a deeper dive into these trends, access our FREE, in-depth Thematic ETF reports in the right side panel of this page.
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.
