Riding the VIX Wave: Massive Swings and Profit-Taking in Alternative ETFs

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Weekly Channel Summary

The Alternative ETF channel currently encompasses 47 ETFs managed across 28 distinct issuers, representing a combined Total AUM of $11.4B. For the week, the segment experienced net outflows totaling ($65M). Despite the recent weekly pullback in assets, the longer-term trajectory remains heavily positive, with the channel bringing in $1.00B in YTD flows and $4.80B over the trailing 1-year period.

This Week’s Performance Leaders and Laggards

The stark inverse relationship between volatility strategies dominated the performance landscape this week. The Alternative: Volatility – Long category surged, posting a 9.00% WTD gain and bringing its YTD return to an impressive 48.53%. Conversely, Alternative: Volatility – Short absorbed the corresponding pressure, dropping -4.45% WTD to push its YTD decline to -19.11%. Within the Absolute Return segment, Managed Futures led the pack with a solid 0.39% weekly return.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Managed Futures 0.39% 0.81% 8.34% 13.15% 9.67% 14.68%
Event Driven 0.03% -0.18% 0.52% 2.32% 0.51% 7.34%
Multi-Strategy -0.43% -1.90% -1.68% -0.70% -0.90% 4.69%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Volatility – Long 9.00% 37.68% 46.33% 15.46% 48.53% -17.86%
Volatility – Short -4.45% -15.06% -18.85% -14.10% -19.11% -16.10%

Top & Bottom 5 ETFs by Weekly Performance

Riding the volatility wave, the 2x Long VIX Futures ETF (UVIX) was the single best-performing fund, rocketing 17.46% higher for the week. On the other end of the spectrum, inverse and complex strategies were heavily punished: the -1x Short VIX Futures ETF (SVIX) plummeted -9.74%, followed closely by the Simplify Multi-QIS Alternative ETF (QIS) which shed -7.49%.

Ticker Fund Name WTD Performance
Top Performers
UVIX 2x Long VIX Futures ETF 17.46%
UVXY ProShares Ultra VIX Short-Term Futures ETF 13.50%
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN 9.24%
VIXY ProShares VIX Short-Term Futures ETF 9.22%
VXZ iPath Series B S&P 500 VIX Mid-Term Futures ETN 2.29%
Bottom Performers
SVIX -1x Short VIX Futures ETF -9.74%
QIS Simplify Multi-QIS Alternative ETF -7.49%
SVXY ProShares Short VIX Short-Term Futures ETF -4.79%
SVOL Simplify Volatility Premium ETF -2.87%
VYLD Inverse Vix Short-Term Futures ETN -2.45%

Analyzing the Weekly Flows

Total net flows for the channel amounted to ($65M). The Absolute Return – Managed Futures category led all segments by attracting $132M in inflows. Because this category has performed well (up 0.39% WTD and 9.67% YTD), these inflows demonstrate ongoing trend-following conviction rather than contrarian positioning. Conversely, the Alternative: Volatility – Long category bled the most assets, suffering massive outflows of ($191M). Given that this category was up 9.00% on the week and is soaring 48.53% YTD, this aggressively negative flow is a clear indicator of investors harvesting gains and taking profits off the table. The remainder of the Absolute Return suite saw minor but positive net additions.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Managed Futures 16 $6.4B $132M $526M $1,530M $1,493M $3,008M
Multi-Strategy 11 $1.9B $3M $72M $113M $108M $350M
Event Driven 9 $0.5B $2M $7M ($22M) ($9M) $31M

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Volatility – Short 5 $1.1B ($11M) $228M $104M $140M ($325M)
Volatility – Long 6 $1.5B ($191M) ($618M) ($742M) ($729M) $1,737M

Top & Bottom 5 ETFs by 5-Day Flow

The Simplify Managed Futures Strategy ETF (CTA) led the channel in creations, gathering $73M, representing an impressive 5.27% of its total AUM. Contrastingly, volatility products saw deep redemptions as investors pulled ($96M) from the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and ($51M) from the 2x Long VIX Futures ETF (UVIX).

Ticker Fund Name 5-Day Flow
Inflows
CTA Simplify Managed Futures Strategy ETF $73M
DBMF IMGP DBi Managed Futures Strategy ETF $40M
KMLM KraneShares Mount Lucas Managed Futures Index Strategy ETF $12M
SVOL Simplify Volatility Premium ETF $6M
FLSP Franklin Systematic Style Premia ETF $4M
Outflows
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN ($96M)
UVIX 2x Long VIX Futures ETF ($51M)
UVXY ProShares Ultra VIX Short-Term Futures ETF ($29M)
SVIX -1x Short VIX Futures ETF ($17M)
VIXY ProShares VIX Short-Term Futures ETF ($14M)

Issuer League Table Update

iM maintains its dominant position within the Alternative segment, holding a 28.61% market share with $3.27B in total assets. Simplify remains a strong second with 18.28% of the market on $2.09B in AUM. Simplify also captured the most new money this week with $79M in inflows, primarily driven by their CTA strategy. Conversely, iPath surrendered the largest chunk of assets as investors withdrew ($96M) across their VIX-linked ETN lineup.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $3.27B 28.61%
Simplify 4 $2.09B 18.28%
New York Life Investments 2 $1.01B 8.81%
ProShares 6 $0.80B 7.00%
Franklin 1 $0.68B 5.93%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Simplify $79M
iM $40M
KraneShares $12M
Outflows
iPath ($96M)
Volatility Shares ($68M)
ProShares ($44M)

For a deeper dive into these trends, access our FREE, in-depth Alternative 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.