The Volatility Seesaw: Investors Take Profits on Short-Vol, Buy the Dip on Long-Vol

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Weekly Channel Summary

The Alternative ETF channel, consisting of 47 ETFs across 28 issuers, holds a total of $12.8B in Assets Under Management (AUM). This week, the channel experienced robust net inflows of $245M. This positive momentum adds to a strong year for Alternative strategies, with Year-to-Date (YTD) flows currently sitting at $2.45B and 1-Year flows reaching an impressive $5.52B.

This Week’s Performance Leaders and Laggards

This week exhibited the classic inverse relationship between Volatility – Short and Volatility – Long strategies. The Volatility – Short category posted a positive weekly return of 0.27%, even though it remains down -7.10% YTD. Conversely, Volatility – Long lost -0.94% for the week, though it is holding a 1.73% gain YTD. Among the Absolute Return strategies, Event Driven led the pack with a modest 0.14% WTD gain.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Event Driven 0.14% 0.46% 1.00% 1.81% 1.53% 7.30%
Absolute Return – Managed Futures -0.21% 2.95% 8.29% 16.82% 13.12% 25.29%
Absolute Return – Multi-Strategy -0.69% -0.86% -0.06% -0.37% 0.64% 12.19%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Short 0.27% 5.19% -4.89% 3.21% -7.10% 27.22%
Alternative: Volatility – Long -0.94% -11.12% -0.28% -21.68% 1.73% -47.66%

Top & Bottom 5 ETFs by Weekly Performance

On an individual fund level, the ASGM (Virtus AlphaSimplex Global Macro ETF) emerged as the single best-performing ETF for the week, notching a 2.78% return. On the opposite end of the spectrum, the two worst-performing ETFs were WZRD (Opportunistic Trader ETF), plunging -11.15%, and QIS (Simplify Multi-QIS Alternative ETF), dropping -6.64%.

Top Performers
Ticker Fund Name WTD Performance
ASGM Virtus AlphaSimplex Global Macro ETF 2.78%
TFPN Blueprint Chesapeake Multi-Asset Trend ETF 1.87%
MFUT Cambria Chesapeake Pure Trend ETF 1.67%
QALT SEI DBI Multi-Strategy Alternative ETF 1.50%
QAI NYLI Hedge Multi-Strategy Tracker ETF 1.24%
Bottom Performers
WZRD Opportunistic Trader ETF -11.15%
QIS Simplify Multi-QIS Alternative ETF -6.64%
CTA Simplify Managed Futures Strategy ETF -3.57%
UVIX 2x Long VIX Futures ETF -2.39%
UVXY ProShares Ultra VIX Short-Term Futures ETF -1.84%

Analyzing the Weekly Flows

The Alternative channel registered a total net flow of $245M. A deep dive into the category data reveals interesting investor behavior. The Volatility – Long category attracted the largest bulk of inflows ($236M). Because this category was the worst performer for the week (-0.94%) and over the past year (-47.66%), these inflows represent a highly contrarian bet by investors attempting to buy the dip or hedge equity risks. In stark contrast, Volatility – Short experienced the heaviest outflows at ($28M). This behavior strongly suggests profit-taking, as investors shed assets in a category that has gained 27.22% over the trailing year. Among Absolute Return strategies, Managed Futures gathered $29M in new money, while Multi-Strategy added $8M, and Event Driven remained completely flat.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Managed Futures 16 $6.9B $29M $346M $1,517M $1,823M $2,986M
Absolute Return – Multi-Strategy 11 $2.4B $8M $360M $511M $516M $734M
Absolute Return – Event Driven 9 $0.4B $0M ($10M) ($20M) ($33M) ($5M)

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Long 6 $1.9B $236M $728M $200M $127M $2,914M
Alternative: Volatility – Short 5 $1.1B ($28M) ($141M) $61M $21M ($1,104M)

Top & Bottom 5 ETFs by 5-Day Flow

Drilling down to individual ETFs, UVXY was the undeniable leader for the week, gathering a massive $147M in absolute flows, representing roughly 45% of its total AUM. On the flip side, the top two ETFs suffering the largest outflows were FMF (bleeding ($18M)) and SVIX (shedding ($15M)).

Inflows
Ticker Fund Name 5-Day Flow
UVXY ProShares Ultra VIX Short-Term Futures ETF $147M
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN $54M
VIXY ProShares VIX Short-Term Futures ETF $23M
DBMF IMGP DBi Managed Futures Strategy ETF $23M
UVIX 2x Long VIX Futures ETF $12M
Outflows
FMF First Trust Managed Futures Strategy Fund ($18M)
SVIX -1x Short VIX Futures ETF ($15M)
SVOL Simplify Volatility Premium ETF ($14M)
MFUT Cambria Chesapeake Pure Trend ETF ($1M)
MARB First Trust Merger Arbitrage ETF ($1M)

Issuer League Table Update

The Alternative ETF channel continues to be top-heavy, with iM and Simplify acting as the dominant issuers. iM leads the market with a robust 27.87% market share on $3.56B in AUM, while Simplify controls 17.65% with $2.25B in AUM. From a flows perspective, ProShares dominated the week, raking in $170M in net inflows across its lineup. Meanwhile, First Trust experienced the heaviest withdrawals, seeing -$18M exit its Alternative products.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $3.56B 27.87%
Simplify 4 $2.25B 17.65%
New York Life Investments 2 $1.23B 9.66%
ProShares 6 $1.03B 8.04%
Franklin 1 $0.90B 7.03%

Top & Bottom 3 Issuers by 5-Day Flow

Inflows
Brand 5-Day Flow
ProShares $170M
iPath $54M
iM $23M
Outflows
First Trust -$18M
Volatility Shares -$3M
Cambria -$1M

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.