Alternative ETFs See $260M in Weekly Inflows as Volatility Trades Diverge

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Weekly Channel Summary

The Alternative ETF channel, consisting of 48 distinct ETFs managed by 28 issuers, oversees approximately $13.4 billion in total Assets Under Management (AUM). This week generated solid momentum with $260M in 5-Day net flows. Year-to-date, the channel has accumulated $3.27B, and over the trailing 1-year period, it has gathered a substantial $6.04B in net new capital, underscoring enduring investor appetite for alternative investment strategies.

This Week’s Performance Leaders and Laggards

This week distinctly showcased the inverse performance relationship between the Volatility – Short and Volatility – Long categories. “Alternative: Volatility – Long” was the strongest performer, returning 4.86% for the week (though it remains pressured at -6.56% YTD). Conversely, “Alternative: Volatility – Short” struggled, pulling back -2.27% over the last 5 days. Within the Absolute Return segment, the “Event Driven” category led the cohort, posting a modest weekly gain of 0.07%.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Event Driven 0.07% 0.38% 1.19% 2.06% 1.86% 6.09%
Absolute Return – Managed Futures -0.66% -1.95% 2.87% 13.15% 11.46% 22.42%
Absolute Return – Multi-Strategy -2.28% -3.75% -3.56% -1.38% -1.26% 10.00%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Long 4.86% -10.36% -18.99% -18.16% -6.56% -46.20%
Alternative: Volatility – Short -2.27% 4.68% 5.73% 1.90% -3.79% 23.69%

Top & Bottom 5 ETFs by Weekly Performance

The standout performer of the week was the UVIX (2x Long VIX Futures ETF), capitalizing on market movements to notch a 9.95% weekly gain. On the other end of the spectrum, the two most significant laggards were WZRD (Opportunistic Trader ETF), which suffered a -17.38% decline, and SVIX (-1x Short VIX Futures ETF), reflecting the struggles of its short-volatility strategy with a -5.67% drop.

Ticker Fund Name WTD Performance
Top Performers
UVIX 2x Long VIX Futures ETF 9.95%
UVXY ProShares Ultra VIX Short-Term Futures ETF 7.06%
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN 4.87%
VIXY ProShares VIX Short-Term Futures ETF 4.86%
VXZ iPath Series B S&P 500 VIX Mid-Term Futures ETN 1.22%
Bottom Performers
WZRD Opportunistic Trader ETF -17.38%
SVIX -1x Short VIX Futures ETF -5.67%
WTIP WisdomTree Inflation Plus Fund -3.41%
ASGM Virtus AlphaSimplex Global Macro ETF -2.74%
SVXY ProShares Short VIX Short-Term Futures ETF -2.54%

Analyzing the Weekly Flows

The Alternative channel registered $260M in net positive inflows this week. Driving much of this growth was clear contrarian buying in the “Alternative: Volatility – Long” category, which attracted an impressive $123M in inflows despite being down substantially over the past year. In contrast, “Alternative: Volatility – Short” faced the steepest outflows, shedding -$17M, pointing to tactical profit-taking by investors securing gains from its strong 1-year run. The Absolute Return categories experienced net additions, with Managed Futures bringing in $97M and Multi-Strategy netting $56M.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Managed Futures 16 $7.5B $97M $607M $1,282M $2,400M $3,522M
Absolute Return – Multi-Strategy 12 $2.5B $56M $72M $540M $579M $804M
Absolute Return – Event Driven 9 $0.4B $1M -$2M -$23M -$35M -$9M

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Long 6 $1.8B $123M $493M $682M $396M $2,407M
Alternative: Volatility – Short 5 $1.1B -$17M -$115M -$35M -$75M -$689M

Top & Bottom 5 ETFs by 5-Day Flow

At the product level, DBMF (IMGP DBi Managed Futures Strategy ETF) attracted the most capital, gathering $96M in new assets over 5 days, representing a solid 2.44% of its AUM. Redemptions were concentrated at the bottom, with KMLM (KraneShares Mount Lucas Managed Futures Index Strategy ETF) and SVOL (Simplify Volatility Premium ETF) witnessing the largest withdrawals of -$19M and -$12M respectively.

Ticker Fund Name 5-Day Flow
Inflows
DBMF IMGP DBi Managed Futures Strategy ETF $96M
UVXY ProShares Ultra VIX Short-Term Futures ETF $62M
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN $35M
LALT First Trust Multi-Strategy Alternative ETF $33M
VIXY ProShares VIX Short-Term Futures ETF $32M
Outflows
KMLM KraneShares Mount Lucas Managed Futures Index Strategy ETF -$19M
SVOL Simplify Volatility Premium ETF -$12M
UVIX 2x Long VIX Futures ETF -$8M
AHLT American Beacon AHL Trend ETF -$7M
SVIX -1x Short VIX Futures ETF -$6M

Issuer League Table Update

The issuer hierarchy remains concentrated at the top. iM continues to assert dominance with $4.04 billion in assets, commanding a leading 30.06% of the category’s AUM. Simplify securely holds the second position with $2.24 billion and a 16.66% market share. Capitalizing on strong inflows into its primary strategy, iM also led the issuers this week, netting $96M, followed closely by ProShares. Meanwhile, KraneShares faced the most significant headwinds, shedding -$19M over the past 5 days.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $4.04B 30.06%
Simplify 5 $2.24B 16.66%
New York Life Investments 2 $1.26B 9.37%
ProShares 6 $1.06B 7.92%
Franklin 1 $0.93B 6.93%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iM $96M
ProShares $95M
First Trust $44M
Outflows
KraneShares -$19M
Volatility Shares -$13M
American Beacon -$7M

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.