The U.S. specialty equity ETF market, a diverse and growing segment with 67 funds from 48 issuers and a total of $13 billion in assets, navigated a week of slight outflows despite positive performance from its core strategies. The market saw a total of $44 million in net redemptions, with the bulk of the withdrawals coming from the largest issuers. The week’s standout performer, the ProShares Long Online/Short Stores ETF (CLIX), surged 2.26%, highlighting a pocket of strong conviction within the retail sector.
Weekly Performance Recap: Long/Short and Hedged Strategies Deliver Positive Returns
Both major categories within the specialty equity space posted gains this week. The Long/Short category edged out Hedged strategies, returning 0.53% versus 0.42% on a category-average basis. The performance of individual funds varied significantly, with the top-performing ETFs delivering strong returns, while market-neutral and downside-hedged products lagged. This divergence underscores the specialized nature of these strategies and their differing sensitivities to market movements.
Category Performance:
| Category | WTD | 1M | 3M | YTD |
| Equity: Specialty – Hedged | +0.42% | +2.23% | +5.68% | +7.84% |
| Equity: Specialty – Long/Short | +0.53% | +1.84% | +3.70% | +6.27% |
Top & Bottom Individual ETF Returns (Week-to-Date):
| Ticker | Fund Name | WTD Return |
| Top 3 Performers | ||
| CLIX | ProShares Long Online/Short Stores ETF | +2.26% |
| QUP | DailyDelta Q100 Upside Option Strategy ETF | +2.19% |
| CLSE | Convergence Long/Short Equity ETF | +2.10% |
| Bottom 3 Performers | ||
| QDWN | DailyDelta Q100 Downside Option Strategy ETF | -4.33% |
| BTAL | AGF U.S. Market Neutral Anti-Beta Fund | -1.07% |
| CCOR | Core Alternative ETF | -1.01% |
Weekly Flows Summary: Outflows Concentrated in Largest Funds
The specialty equity ETF market saw net outflows of $44 million over the past five days. The withdrawals were not broad-based, but rather concentrated in some of the largest funds in the space, suggesting some institutional profit-taking or repositioning. The majority of inflows were directed towards smaller, niche strategies. Overall, the flow data indicates a week of risk reduction among larger players, while smaller funds continued to attract assets.
Category Flows (5-Day):
| Category | Fund Count | AUM | WTD Flow | 1M Flow | YTD Flow |
| Equity: Specialty – Hedged | 49 | $9.0B | -$30M | +$295M | +$1,851M |
| Equity: Specialty – Long/Short | 18 | $3.5B | -$13M | +$86M | +$331M |
Largest Individual ETF Flows (5-Day):
| Ticker | Fund Name | Flow |
| Top 3 Inflows | ||
| MSTB | LHA Market State Tactical Beta ETF | +$18M |
| QBER | TrueShares Quarterly Bear Hedge ETF | +$8M |
| HEGD | Swan Hedged Equity US Large Cap ETF | +$6M |
| Top 3 Outflows | ||
| HELO | JPMorgan Hedged Equity Laddered Overlay ETF | -$38M |
| FTLS | First Trust Long/Short Equity ETF | -$17M |
| SPUC | Simplify US Equity PLUS Upside Convexity ETF | -$13M |
Issuer and Product Landscape
The issuer landscape for specialty equity ETFs is quite fragmented, though JPMorgan and First Trust command a significant portion of the market with a combined 44.79% market share. Both of these leading issuers experienced outflows this week. The space has been active with new product launches, with six new ETFs coming to market in the past three months, reflecting a continued demand for alternative and risk-managed equity strategies.
Issuer Flow Leaders & Laggards (5-Day):
| Issuer | AUM | Market Share | WTD Flow | WTD Flow (% of AUM) |
| Top 3 Inflows | ||||
| Little Harbor Advisors | $0.20B | 1.63% | +$18M | +8.88% |
| TrueShares | $0.23B | 1.84% | +$7M | +3.19% |
| Swan | $0.48B | 3.80% | +$6M | +1.32% |
| Top 3 Outflows | ||||
| JPMorgan | $3.67B | 29.18% | -$38M | -1.05% |
| Simplify | $0.59B | 4.70% | -$18M | -2.99% |
| First Trust | $1.96B | 15.61% | –$17M | -0.86% |
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.
