Weekly Channel Summary
The Alternative ETF channel, comprising 46 funds from 29 issuers, currently oversees $10.1B in assets. This week, the channel saw a net outflow of $15M. This recent negative sentiment contrasts with the longer-term trend, as the channel has gathered $3.90B in net inflows year-to-date and $3.96B over the past year. The past month has also been challenging, with total net outflows reaching $228M, indicating a potential short-term shift in investor preference despite strong annual growth.
This Week’s Performance Leaders and Laggards
Performance this week highlighted a clear divergence in the volatility space. The “Alternative: Volatility – Long” category led with a 2.70% return, contrasting sharply with the “Alternative: Volatility – Short” category, which fell by 1.48%. Despite this weekly win, long volatility remains deeply negative YTD at -24.48%, while short volatility is down -11.40%. In the absolute return space, “Absolute Return – Multi-Strategy” was the top performer with a modest 0.31% gain.
Absolute Return Category Performance
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Absolute Return – Multi-Strategy | 0.31% | 1.29% | 3.80% | 6.80% | 3.82% | 3.27% |
| Absolute Return – Event Driven | 0.22% | 1.18% | 2.74% | 5.61% | 8.64% | 9.10% |
| Absolute Return – Managed Futures | -0.48% | -0.96% | 5.17% | 7.38% | 2.41% | 4.17% |
Volatility Category Performance
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Alternative: Volatility – Long | 2.70% | 1.86% | -17.84% | -40.19% | -24.48% | -23.62% |
| Alternative: Volatility – Short | -1.48% | -3.07% | 7.11% | 26.56% | -11.40% | -15.26% |
Top & Bottom 5 ETFs by Weekly Performance
The week’s top performer was WZRD (Opportunistic Trader ETF), posting a strong 7.71% gain. On the other end of the spectrum, SVIX (-1x Short VIX Futures ETF) and HFMF (Unlimited HFMF Managed Futures ETF) were the biggest laggards, down -3.40% and -2.06% respectively. The poor performance of SVIX aligns with the broader struggle of the short volatility category this week.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| WZRD | Opportunistic Trader ETF | 7.71% |
| UVIX | 2x Long VIX Futures ETF | 4.98% |
| VIXI | Defiance Enhanced Long Vol ETF | 4.66% |
| UVXY | ProShares Ultra VIX Short-Term Futures ETF | 3.34% |
| VXX | iPath Series B S&P 500 VIX Short-Term Futures ETN | 2.40% |
| Bottom Performers | ||
| SVIX | -1x Short VIX Futures ETF | -3.40% |
| HFMF | Unlimited HFMF Managed Futures ETF | -2.06% |
| AHLT | American Beacon AHL Trend ETF | -1.75% |
| SVOL | Simplify Volatility Premium ETF | -1.70% |
| ASGM | Virtus AlphaSimplex Global Macro ETF | -1.55% |
Analyzing the Weekly Flows
Investors pulled a net $15M from the channel this week. The “Absolute Return – Managed Futures” category saw the highest inflows at $57M, seemingly contrarian given its negative weekly performance of -0.48%. Conversely, “Alternative: Volatility – Long” experienced the largest outflows of $86M, despite being the top performing category this week, suggesting investors may be taking profits on the recent gains. Overall, absolute return strategies saw net positive flows, while volatility strategies faced net redemptions.
Absolute Return Category Flows
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Absolute Return – Managed Futures | 14 | $4.3B | $57M | $173M | $694M | $1,675M | $1,962M |
| Absolute Return – Multi-Strategy | 11 | $1.9B | $19M | $99M | $290M | $308M | $459M |
| Absolute Return – Event Driven | 9 | $0.4B | $8M | $12M | $7M | ($12M) | ($10M) |
Volatility Category Flows
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Alternative: Volatility – Short | 5 | $1.2B | ($13M) | $13M | ($220M) | ($471M) | ($586M) |
| Alternative: Volatility – Long | 7 | $2.3B | ($86M) | ($525M) | $624M | $2,398M | $2,132M |
Top & Bottom 5 ETFs by 5-Day Flow
DBMF (IMGP DBi Managed Futures Strategy ETF) led inflows, gathering $30M. On the outflow side, UVXY (ProShares Ultra VIX Short-Term Futures ETF) and UVIX (2x Long VIX Futures ETF) saw the largest exits, with redemptions of $41M and $20M respectively. This selling in leveraged long volatility products like UVXY, which lost nearly 7% of its assets, highlights aggressive profit-taking or risk reduction by traders.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| DBMF | IMGP DBi Managed Futures Strategy ETF | $30M |
| FAAR | First Trust Alternative Absolute Return Strategy ETF | $15M |
| FLSP | Franklin Systematic Style Premia ETF | $15M |
| FMF | First Trust Managed Futures Strategy Fund | $7M |
| QAI | NYLI Hedge Multi-Strategy Tracker ETF | $7M |
| Outflows | ||
| UVXY | ProShares Ultra VIX Short-Term Futures ETF | ($41M) |
| UVIX | 2x Long VIX Futures ETF | ($20M) |
| VXX | iPath Series B S&P 500 VIX Short-Term Futures ETN | ($14M) |
| SVIX | -1x Short VIX Futures ETF | ($13M) |
| VIXY | ProShares VIX Short-Term Futures ETF | ($12M) |
Issuer League Table Update
Simplify and iM Global Partner (IM) dominate the issuer landscape, holding virtually identical market shares of roughly 19% each, with $1.92B and $1.90B in AUM respectively. This week, IM led inflows with $30M gathered, while ProShares experienced the most significant outflows, losing $52M.
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| Simplify | 3 | $1.92B | 18.98% |
| IM | 1 | $1.90B | 18.77% |
| ProShares | 6 | $1.16B | 11.47% |
| New York Life Investments | 2 | $1.09B | 10.74% |
| iPath | 2 | $0.90B | 8.91% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| IM | $30M |
| First Trust | $22M |
| Franklin | $15M |
| Outflows | |
| ProShares | ($52M) |
| Volatility Shares | ($33M) |
| iPath | ($14M) |
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.
