Volatility Spike Drives Performance While Managed Futures Lead Alternative ETF Flows

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Weekly Channel Summary

The Alternative ETF landscape currently manages approximately $10.4B in assets across 46 products from 28 distinct brands. The channel experienced a positive week with net inflows of $31M, contributing to a year-to-date (YTD) total of $218M. This steady accumulation of capital reflects a sustained interest in non-traditional asset classes, which have seen massive growth over the past year with total flows reaching $3.74B. While the Absolute Return categories continue to provide the bulk of the stability in AUM, the Volatility segment remains the primary source of performance variance, driven by shifting market sentiment.

This Week’s Performance Leaders and Laggards

Performance this week was dominated by a sharp spike in market volatility. The Alternative: Volatility – Long category soared with a weekly return of 6.27%, pushing its YTD return to 8.45%. Conversely, the Alternative: Volatility – Short category tumbled, posting a loss of -2.93% for the week, which deepens its YTD decline to -5.25%. Within the Absolute Return space, the Multi-Strategy category led the pack this week with a gain of 0.34%, successfully navigating the choppy environment that saw more moderate gains for Managed Futures and Event Driven strategies.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Multi-Strategy 0.34% -2.34% -1.71% 0.57% -0.37% 4.12%
Absolute Return – Managed Futures 0.15% 1.28% 6.80% 13.51% 4.76% 9.76%
Absolute Return – Event Driven 0.06% 0.25% 0.91% 3.33% 0.58% 8.25%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Long 6.27% 9.38% -19.25% -26.41% 8.45% -29.78%
Alternative: Volatility – Short -2.93% -5.73% 6.72% 8.83% -5.25% -9.17%

Top & Bottom 5 ETFs by Weekly Performance

The top performer for the week was the UVIX (2x Long VIX Futures ETF), which surged 12.52% as market uncertainty spiked. On the other end of the spectrum, the SVIX (-1x Short VIX Futures ETF) and SVXY (ProShares Short VIX Short-Term Futures ETF) were the week’s primary laggards, falling -6.47% and -3.12% respectively, as short-volatility strategies were penalized by the rising VIX.

Ticker Fund Name WTD Performance
Top Performers
UVIX 2x Long VIX Futures ETF 12.52%
UVXY ProShares Ultra VIX Short-Term Futures ETF 9.04%
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN 6.15%
VIXY ProShares VIX Short-Term Futures ETF 6.12%
CTA Simplify Managed Futures Strategy ETF 2.19%
Bottom Performers
SVIX -1x Short VIX Futures ETF -6.47%
SVXY ProShares Short VIX Short-Term Futures ETF -3.12%
SVOL Simplify Volatility Premium ETF -2.10%
ZVOL Volatility Premium Plus ETF -1.82%
VYLD Inverse Vix Short-Term Futures ETN -1.13%

Analyzing the Weekly Flows

Investor behavior this week was characterized by a rotation into trend-following strategies. The Absolute Return – Managed Futures category was the clear beneficiary, attracting $80M in new capital. Interestingly, we saw profit-taking in the Volatility – Long category, which shed -$41M despite being the top-performing segment. This suggests that investors are treating the volatility spike as a tactical opportunity to harvest gains rather than a long-term core position. The net flow for Absolute Return strategies remains robust, led by Managed Futures, while Event Driven and Multi-Strategy saw marginal outflows of -$1M and -$2M, respectively.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Managed Futures 15 $5.3B $80M $249M $700M $387M $2,029M
Absolute Return – Event Driven 9 $0.5B -$1M -$14M -$2M -$15M $29M
Absolute Return – Multi-Strategy 11 $1.9B -$2M $12M -$43M $4M $253M

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Short 5 $1.1B -$5M $6M -$87M -$45M -$351M
Alternative: Volatility – Long 6 $1.7B -$41M -$185M -$128M -$114M $1,780M

Top & Bottom 5 ETFs by 5-Day Flow

The top inflow leader for the week was the DBMF (IMGP DBi Managed Futures Strategy ETF), which gathered $40M, representing approximately 1.65% of its AUM. In contrast, the outflow laggards were dominated by volatility products. The UVXY and VXX saw the largest weekly withdrawals of -$29M and -$22M respectively, as investors moved out of VIX-futures-based products despite the underlying index’s performance.

Ticker Fund Name 5-Day Flow
Inflows
DBMF IMGP DBi Managed Futures Strategy ETF $40M
CTA Simplify Managed Futures Strategy ETF $25M
KMLM KraneShares Mount Lucas Managed Futures Index Strategy ETF $8M
VIXY ProShares VIX Short-Term Futures ETF $5M
UVIX 2x Long VIX Futures ETF $5M
Outflows
UVXY ProShares Ultra VIX Short-Term Futures ETF -$29M
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN -$22M
SVIX -1x Short VIX Futures ETF -$5M
WZRD Opportunistic Trader ETF -$3M
MNA NYLI Merger Arbitrage ETF -$2M

Issuer League Table Update

The issuer landscape is currently dominated by iM and Simplify, which together control over 42% of the market share in the Alternative channel. iM maintains the top spot with a 23.88% market share ($2.48B AUM) and led the week in flows with $40M. Simplify follows with an 18.84% share ($1.96B AUM) and also saw significant weekly growth. Meanwhile, ProShares remains a significant player with an 8.75% share, though it experienced the largest weekly outflows of -$23M.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $2.48B 23.88%
Simplify 3 $1.96B 18.84%
New York Life Investments 2 $1.03B 9.91%
ProShares 6 $0.91B 8.75%
iPath 2 $0.64B 6.15%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iM $40M
Simplify $25M
KraneShares $8M
Outflows
ProShares -$23M
iPath -$22M
New York Life Investments -$4M

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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.