The Alt ETF Update: Managed Futures Gain While Short Volatility Drains

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Weekly Channel Summary

The Alternative ETF channel presently encompasses $12.28 billion in total Assets Under Management (AUM) across 47 individual funds and 28 unique issuers. Over the past week, the space saw net positive flows of $47 million. This steady weekly influx builds upon a robust year-to-date (YTD) flow total of $1.77 billion and an impressive 1-year flow total of $4.69 billion, underscoring sustained investor appetite for alternative ETF strategies despite broader market fluctuations.

This Week’s Performance Leaders and Laggards

This week’s performance highlighted the stark inverse relationship inherent to the volatility products. The Alternative: Volatility – Long category rebounded sharply with a week-to-date (WTD) return of 3.06%, pushing its YTD standing up to 7.90%. Inversely, the Alternative: Volatility – Short category suffered the consequences of climbing volatility, dropping -1.14% WTD and sinking further into the red at -9.15% YTD. Within the absolute return spectrum, the Absolute Return – Managed Futures category led the pack, posting a strong 1.99% WTD gain to bring its YTD performance to an impressive 12.03%.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Managed Futures 1.99% 3.44% 7.21% 13.35% 12.03% 23.29%
Absolute Return – Multi-Strategy 1.15% -0.08% -1.98% -1.14% -0.06% 11.56%
Absolute Return – Event Driven 0.06% 0.80% 0.91% 2.03% 1.47% 8.08%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Long 3.06% -15.97% 9.46% -13.18% 7.90% -49.37%
Alternative: Volatility – Short -1.14% 6.74% -9.07% -2.01% -9.15% 29.27%

Top & Bottom 5 ETFs by Weekly Performance

Looking at individual funds, the single best-performing ETF for the week was the Simplify Multi-QIS Alternative ETF (QIS), which surged an impressive 12.11%. Conversely, the two worst-performing ETFs were the -1x Short VIX Futures ETF (SVIX) dropping -3.00%, and the Opportunistic Trader ETF (WZRD), which fell -1.67%. Unsurprisingly, the bottom performer (SVIX) is a short volatility fund, reflecting the week’s broader category struggles.

Top Performers
Ticker Fund Name WTD Performance
QIS Simplify Multi-QIS Alternative ETF 12.11%
CTA Simplify Managed Futures Strategy ETF 6.68%
UVIX 2x Long VIX Futures ETF 5.67%
SCLS Stoneport Advisors Commodity Long Short ETF 4.52%
UVXY ProShares Ultra VIX Short-Term Futures ETF 4.20%
Bottom Performers
Ticker Fund Name WTD Performance
SVIX -1x Short VIX Futures ETF -3.00%
WZRD Opportunistic Trader ETF -1.67%
SVXY ProShares Short VIX Short-Term Futures ETF -1.36%
ZVOL Volatility Premium Plus ETF -1.36%
FLSP Franklin Systematic Style Premia ETF -0.81%

Analyzing the Weekly Flows

The channel attracted $47 million in net flows this week. The Alternative: Volatility – Long category received the most substantial inflows, bringing in $77 million. Given the category’s positive 3.06% WTD return, investors appear to be chasing recent momentum rather than executing a contrarian play. In stark contrast, the Alternative: Volatility – Short category saw the largest outflows at -$28 million, likely reflecting capitulation or profit-taking as the group broadly underperformed over the past 5 days. Within the Absolute Return segment, net flows were somewhat mixed; Multi-Strategy added $13 million, while both Managed Futures and Event Driven experienced modest outflows.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Multi-Strategy 11 $2.1B $13M $71M $169M $176M $395M
Absolute Return – Event Driven 9 $0.4B -$4M -$19M -$21M -$29M -$1M
Absolute Return – Managed Futures 16 $6.8B -$11M $312M $1,541M $1,748M $3,020M

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Long 6 $1.7B $77M $395M -$150M -$182M $2,760M
Alternative: Volatility – Short 5 $1.2B -$28M -$90M $112M $61M -$1,480M

Top & Bottom 5 ETFs by 5-Day Flow

At the fund level, the top inflow leader was the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX), a long volatility product that successfully gathered $57 million. This single-week haul represented a substantial 15.48% of its AUM. On the flip side, the top two ETFs for outflows were the -1x Short VIX Futures ETF (SVIX) and the ProShares Ultra VIX Short-Term Futures ETF (UVXY), each bleeding $28 million over the past five days.

Inflows
Ticker Fund Name 5-Day Flow
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN $57M
UVIX 2x Long VIX Futures ETF $31M
CTA Simplify Managed Futures Strategy ETF $25M
VIXY ProShares VIX Short-Term Futures ETF $18M
LALT First Trust Multi-Strategy Alternative ETF $6M
Outflows
Ticker Fund Name 5-Day Flow
SVIX -1x Short VIX Futures ETF -$28M
UVXY ProShares Ultra VIX Short-Term Futures ETF -$28M
DBMF iMGP DBi Managed Futures Strategy ETF -$25M
KMLM KraneShares Mount Lucas Managed Futures Index Strategy ETF -$23M
MNA NYLI Merger Arbitrage ETF -$4M

Issuer League Table Update

In the issuer landscape, the top two providers by market share are iM, holding 28.75% of the market with $3.50 billion in AUM, and Simplify, which controls 18.53% with $2.26 billion. For the week, iPath successfully gathered the most in new assets, reeling in $57 million in inflows. Conversely, iM saw the largest outflows of the group, shedding $25 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $3.50B 28.75%
Simplify 4 $2.26B 18.53%
New York Life Investments 2 $1.05B 8.58%
ProShares 6 $0.96B 7.89%
Volatility Shares 3 $0.77B 6.34%

Top & Bottom 3 Issuers by 5-Day Flow

Inflows
Brand 5-Day Flow
iPath $57M
Simplify $27M
First Trust $9M
Outflows
Brand 5-Day Flow
iM -$25M
KraneShares -$23M
ProShares -$11M

For a deeper dive into these trends, access our FREE, in-depth Thematic 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.