Weekly Channel Summary
The Alternative ETF channel, currently comprising 46 funds, manages a total of $9.8 billion in assets. For the week ending January 2, 2026, the channel brought in net inflows of $22 million, contributing to a year-to-date total of $43 million and a strong 1-year flow figure of $4.18 billion. While the overall flow picture was positive, activity was concentrated, with the Absolute Return – Managed Futures category doing the heavy lifting, offsetting outflows across the Volatility complex. This week’s modest net positive flow suggests a continued, albeit selective, appetite for alternative diversification strategies amidst broader market movements.
This Week’s Performance Leaders and Laggards
Performance this week highlighted the stark mechanical differences within the Volatility space. The “Volatility – Short” category led the way with a positive weekly return of 0.92%, benefiting from the suppression of volatility, while the “Volatility – Long” category suffered significantly, dropping -2.96%. In the Absolute Return space, returns were muted; “Absolute Return – Event Driven” was the only sub-category to stay in the green, posting a flat but positive return of 0.01%, while both Managed Futures and Multi-Strategy posted slight declines.
Absolute Return Category Performance
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Absolute Return – Event Driven | 0.01% | 0.23% | 1.65% | 3.38% | 0.00% | 8.85% |
| Absolute Return – Multi-Strategy | -0.33% | 0.13% | 0.13% | 2.07% | 0.45% | 2.91% |
| Absolute Return – Managed Futures | -0.68% | 2.24% | 4.41% | 10.26% | 0.47% | 5.29% |
Volatility Category Performance
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Alternative: Volatility – Short | 0.92% | 8.02% | 7.82% | 24.02% | 0.51% | 1.60% |
| Alternative: Volatility – Long | -2.96% | -17.03% | -22.19% | -41.37% | -1.80% | -39.97% |
Top & Bottom 5 ETFs by Weekly Performance
The week’s top performer was SVIX (-1x Short VIX Futures ETF), which gained 3.19%, underscoring the success of short volatility strategies this week. Conversely, the bottom performers were dominated by leveraged long volatility funds; UVIX (2x Long VIX Futures ETF) dropped -6.51%, and UVXY fell -5.27%, illustrating the harsh drag on long volatility positions during calm market periods.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| SVIX | -1x Short VIX Futures ETF | 3.19% |
| SVXY | ProShares Short VIX Short-Term Futures ETF | 1.81% |
| WZRD | Opportunistic Trader ETF | 1.68% |
| TFPN | Blueprint Chesapeake Multi-Asset Trend ETF | 0.71% |
| FFUT | Fidelity Managed Futures ETF | 0.67% |
| Bottom Performers | ||
| UVIX | 2x Long VIX Futures ETF | -6.51% |
| UVXY | ProShares Ultra VIX Short-Term Futures ETF | -5.27% |
| QIS | Simplify Multi-QIS Alternative ETF | -4.37% |
| VIXY | ProShares VIX Short-Term Futures ETF | -3.50% |
| VXX | iPath Series B S&P 500 VIX Short-Term Futures ETN | -3.48% |
Analyzing the Weekly Flows
The channel attracted a total net inflow of $22 million this week, characterized by a distinct preference for managed futures strategies over pure volatility plays. “Absolute Return – Managed Futures” was the clear winner, pulling in $90 million. This appears to be a “buy the dip” or strategic allocation move, given that the category was slightly down for the week but remains a strong performer over the long term. In contrast, “Alternative: Volatility – Short” saw the largest outflows of ($45 million), suggesting profit-taking as the category hit weekly highs. “Event Driven” also saw mild outflows, further concentrating the positive sentiment into Managed Futures.
Absolute Return Category Flows
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Absolute Return – Managed Futures | 15 | $4.6B | $90M | $302M | $737M | $54M | $2,044M |
| Absolute Return – Multi-Strategy | 11 | $1.8B | $5M | ($38M) | $171M | $0M | $259M |
| Absolute Return – Event Driven | 9 | $0.5B | ($13M) | $13M | $25M | $0M | $1M |
Volatility Category Flows
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Alternative: Volatility – Long | 6 | $1.6B | ($15M) | $181M | ($563M) | ($3M) | $2,411M |
| Alternative: Volatility – Short | 5 | $1.2B | ($45M) | ($104M) | ($98M) | ($9M) | ($537M) |
Top & Bottom 5 ETFs by 5-Day Flow
The inflow leader by a significant margin was DBMF (IMGP DBi Managed Futures Strategy ETF), gathering $86 million, which represents over 4% of its AUM in just one week. This cements its status as a favored vehicle for managed futures exposure. On the outflow side, investors pulled money from volatility products regardless of direction; SVIX (-1x Short VIX Futures ETF) shed ($30 million) despite its strong performance, and VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) lost ($18 million).
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| DBMF | IMGP DBi Managed Futures Strategy ETF | $86M |
| UVIX | 2x Long VIX Futures ETF | $7M |
| CTA | Simplify Managed Futures Strategy ETF | $6M |
| QAI | NYLI Hedge Multi-Strategy Tracker ETF | $5M |
| ARB | AltShares Merger Arbitrage ETF | $3M |
| Outflows | ||
| SVIX | -1x Short VIX Futures ETF | ($30M) |
| VXX | iPath Series B S&P 500 VIX Short-Term Futures ETN | ($18M) |
| MRGR | ProShares Merger ETF | ($17M) |
| SVOL | Simplify Volatility Premium ETF | ($15M) |
| VIXY | ProShares VIX Short-Term Futures ETF | ($7M) |
Issuer League Table Update
iM (IMGP) continues to lead the issuer market share race, controlling 21.43% of the channel’s assets with $2.10 billion in AUM. Simplify remains a close second with 19.17%. In terms of flows, iM was the dominant force this week, gathering $86 million, while Volatility Shares experienced the heaviest outflows, shedding ($23 million).
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| iM | 1 | $2.10B | 21.43% |
| Simplify | 3 | $1.88B | 19.17% |
| New York Life Investments | 2 | $1.04B | 10.62% |
| ProShares | 6 | $0.95B | 9.71% |
| iPath | 2 | $0.65B | 6.60% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| iM | $86M |
| New York Life Investments | $5M |
| Altshares | $3M |
| Outflows | |
| Volatility Shares | ($23M) |
| ProShares | ($21M) |
| iPath | ($18M) |
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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.
