Weekly Channel Summary
The Alternative ETF channel, comprising 46 ETFs from 28 different issuers, closed the week with a total of $9.9 billion in Assets Under Management. The channel experienced a net inflow of $103 million over the past week, contributing to a robust year-to-date net inflow of $3.68 billion. Over the last twelve months, the channel has attracted a total of $3.91 billion in new assets, signaling sustained investor interest in strategies designed to provide diversification and non-correlated returns. This week’s positive flow continues the momentum seen over the past month, where the channel has gathered $427 million.
This Week’s Performance Leaders and Laggards
This week’s performance data starkly illustrates the inverse relationship inherent in volatility-linked products. The “Volatility – Short” category posted a gain of 0.33% for the week, while the “Volatility – Long” category predictably moved in the opposite direction, declining by -1.13%. This dynamic underscores their role as tactical instruments for opposing market volatility expectations. Year-to-date, these categories reflect significant divergence, with the long volatility group down -27.92% and the short volatility group down a more modest -6.82%. Among the Absolute Return strategies, the “Managed Futures” category was the top performer this week, delivering a 0.93% return.
Absolute Return Category Performance
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Absolute Return – Managed Futures | 0.93% | 2.89% | 5.68% | 2.09% | 2.26% | 1.83% |
| Absolute Return – Event Driven | 0.33% | 0.71% | 1.99% | 4.92% | 7.02% | 8.09% |
| Absolute Return – Multi-Strategy | 0.24% | 0.86% | 2.96% | 3.66% | 2.87% | 2.90% |
Volatility Category Performance
| Category | WTD | 1 Month | 3 Month | 6 Month | YTD | 1 Year |
|---|---|---|---|---|---|---|
| Alternative: Volatility – Short | 0.33% | 4.90% | 18.27% | 0.15% | -6.82% | -9.25% |
| Alternative: Volatility – Long | -1.13% | -8.99% | -29.32% | -28.52% | -27.92% | -31.26% |
Top & Bottom 5 ETFs by Weekly Performance
The week’s top individual performer was the First Trust Alternative Absolute Return Strategy ETF (FAAR), which gained an impressive 3.46%. On the other end of the spectrum, the two worst-performing ETFs were leveraged long volatility funds, with the 2x Long VIX Futures ETF (UVIX) and the ProShares Ultra VIX Short-Term Futures ETF (UVXY) falling -1.77% and -1.73%, respectively, reflecting the week’s calming volatility environment.
| Ticker | Fund Name | WTD Performance |
|---|---|---|
| Top Performers | ||
| FAAR | First Trust Alternative Absolute Return Strategy ETF | 3.46% |
| AHLT | American Beacon AHL Trend ETF | 2.94% |
| CTA | Simplify Managed Futures Strategy ETF | 2.19% |
| LALT | First Trust Multi-Strategy Alternative ETF | 1.38% |
| FLSP | Franklin Systematic Style Premia ETF | 1.15% |
| Bottom Performers | ||
| VIXM | ProShares VIX Mid-Term Futures ETF | -0.79% |
| VXX | iPath Series B S&P 500 VIX Short-Term Futures ETN | -1.03% |
| VIXY | ProShares VIX Short-Term Futures ETF | -1.06% |
| UVXY | ProShares Ultra VIX Short-Term Futures ETF | -1.73% |
| UVIX | 2x Long VIX Futures ETF | -1.77% |
Analyzing the Weekly Flows
Investors allocated a net total of $103 million to the Alternative channel this week, displaying a clear contrarian appetite for risk. The “Volatility – Long” category, despite being the worst-performing category with a -1.13% weekly return, attracted the most significant inflows, pulling in $66 million. This suggests investors may be positioning for a future spike in market volatility. Conversely, the “Volatility – Short” category, which performed positively, saw the largest outflows of the week at ($12 million), indicating potential profit-taking. Across the Absolute Return categories, Managed Futures led with $50 million in new assets, while Event Driven strategies saw minor outflows of ($1 million).
Absolute Return Category Flows
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Absolute Return – Managed Futures | 14 | $3.9B | $50M | $77M | $406M | $1,271M | $1,605M |
| Absolute Return – Multi-Strategy | 11 | $1.6B | $0M | $45M | $0M | $51M | $192M |
| Absolute Return – Event Driven | 9 | $0.4B | ($1M) | ($13M) | $5M | ($24M) | ($70M) |
Volatility Category Flows
| Category | Fund Count | AUM | 5 Day | 30 Day | 90 Day | YTD | 1 Year |
|---|---|---|---|---|---|---|---|
| Alternative: Volatility – Long | 7 | $2.7B | $66M | $393M | $2,207M | $2,824M | $2,701M |
| Alternative: Volatility – Short | 5 | $1.3B | ($12M) | ($76M) | ($402M) | ($445M) | ($523M) |
Top & Bottom 5 ETFs by 5-Day Flow
The top inflow leader this week was the 2x Long VIX Futures ETF (UVIX), a leveraged long volatility fund which gathered an impressive $63 million, representing 12.49% of its total AUM. On the outflows side, two short volatility products led the pack. The -1x Short VIX Futures ETF (SVIX) saw outflows of ($7 million), and the ProShares Short VIX Short-Term Futures ETF (SVXY) shed ($5 million), reinforcing the theme of investors rotating out of short volatility positions.
| Ticker | Fund Name | 5-Day Flow |
|---|---|---|
| Inflows | ||
| UVIX | 2x Long VIX Futures ETF | $63M |
| DBMF | IMGP DBi Managed Futures Strategy ETF | $36M |
| CTA | Simplify Managed Futures Strategy ETF | $12M |
| HFMF | Unlimited HFMF Managed Futures ETF | $3M |
| UVXY | ProShares Ultra VIX Short-Term Futures ETF | $2M |
| Outflows | ||
| MNA | NYLI Merger Arbitrage ETF | ($2M) |
| SVXY | ProShares Short VIX Short-Term Futures ETF | ($5M) |
| SVIX | -1x Short VIX Futures ETF | ($7M) |
Issuer League Table Update
Simplify remains the dominant issuer in the Alternative ETF space, commanding a 20.32% market share with $2.01 billion in AUM. The second-largest issuer is iM, which holds a 15.19% market share with $1.50 billion in assets. This week, Volatility Shares was the top asset gatherer, bringing in $56 million in new flows. On the other side of the ledger, New York Life Investments experienced the largest outflows, with a modest withdrawal of ($2 million).
Top 5 Issuers by AUM
| Brand | Fund Count | AUM | AUM Market Share |
|---|---|---|---|
| Simplify | 3 | $2.01B | 20.32% |
| iM | 1 | $1.50B | 15.19% |
| ProShares | 6 | $1.35B | 13.64% |
| iPath | 2 | $1.05B | 10.59% |
| New York Life Investments | 2 | $0.96B | 9.74% |
Top & Bottom 3 Issuers by 5-Day Flow
| Brand | 5-Day Flow |
|---|---|
| Inflows | |
| Volatility Shares | $56M |
| iM | $36M |
| Simplify | $12M |
| Outflows | |
| ProShares | ($1M) |
| iPath | ($1M) |
| New York Life Investments | ($2M) |
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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.
