HFSP Shines as Specialty Equity ETFs Post Weekly Losses and Muted Flows

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Weekly Channel Summary

The Specialty Equity channel holds $20.45 billion in assets across 82 ETFs from 54 different issuers. Investors added a net $37 million to the channel this week, contributing to a robust year-to-date inflow of $5.20 billion. Over the past year, the channel has successfully attracted $6.23 billion in new assets.

This Week’s Performance Leaders and Laggards

Both Specialty Equity categories finished the week with negative returns. The Long | Short category posted a modest decline of -0.42%, while the Hedged category fell further, losing -0.70%. Despite the weekly dip, both categories remain firmly in positive territory year-to-date. The Long | Short group leads with a 10.61% gain so far in 2026.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Long | Short -0.42% 0.19% 3.32% 9.91% 10.61% 15.31%
Hedged -0.70% -0.68% 2.59% 7.80% 7.81% 11.28%

Top & Bottom 5 ETFs by Weekly Performance

In a challenging week for the category, the TradersAI Large Cap Equity & Cash ETF (HFSP) stood out with a 1.80% gain. Similarly, the Gotham Short Strategies ETF (SHRT) also delivered positive returns, rising 1.66%. At the other end of the spectrum, the Castellan Targeted Equity ETF (CTEF) was the weakest performer, declining by -2.47% for the week.

Ticker Fund Name WTD Performance
Top Performers
HFSP TradersAI Large Cap Equity & Cash ETF 1.80%
SHRT Gotham Short Strategies ETF 1.66%
BTAL AGF U.S. Market Neutral Anti-Beta Fund 1.24%
HXE Mast HedgeIndex Adaptive Equities ETF 0.87%
MKTN Federated Hermes MDT Market Neutral ETF 0.57%
Bottom Performers
CTEF Castellan Targeted Equity ETF -2.47%
ISWN Amplify BlackSwan ISWN ETF -2.30%
HFEQ Unlimited HFEQ Equity Long/Short ETF -2.23%
PCR Simplify VettaFi Private Credit Strategy ETF -2.18%
LBAY Leatherback Long/Short Alternative Yield ETF -1.86%

Analyzing the Weekly Flows

Net flows into the Specialty channel were subdued this week, totaling just $37 million. The Long | Short category captured the bulk of these new assets, bringing in $29 million. The Hedged category also saw positive interest, albeit smaller, with $8 million in net inflows, continuing a trend of steady demand seen throughout the year.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Long | Short 29 $7.57B $29M $603M $2,503M $3,306M $3,547M
Hedged 53 $12.88B $8M $274M $1,318M $1,898M $2,679M

Top & Bottom 5 ETFs by 5-Day Flow

The Convergence Long/Short Equity ETF (CLSE) was the week’s top asset gatherer, securing $8 million in new capital. On the redemption side, outflows were also moderate across the channel. The Simplify Hedged Equity ETF (HEQT) experienced the largest withdrawal at -$6 million, followed by the John Hancock Hedged Equity ETF (JHDG) with -$3 million in outflows.

Ticker Fund Name 5-Day Flow
Inflows
CLSE Convergence Long/Short Equity ETF $8M
MKTN Federated Hermes MDT Market Neutral ETF $7M
HELO JPMorgan Hedged Equity Laddered Overlay ETF $7M
BTAL AGF U.S. Market Neutral Anti-Beta Fund $6M
CAOS Alpha Architect Tail Risk ETF $5M
Outflows
HEQT Simplify Hedged Equity ETF -$6M
JHDG John Hancock Hedged Equity ETF -$3M
CSM ProShares Large Cap Core Plus -$3M
SPUC Simplify US Equity Income ETF -$3M
OVLH Overlay Shares Hedged Large Cap Equity ETF -$2M

Issuer League Table Update

JPMorgan continues to dominate the issuer landscape, commanding a 24.91% market share, with First Trust holding the second position at 12.36%. Convergence led all issuers in weekly asset gathering, bringing in $8 million. Conversely, Simplify saw the largest net redemptions for the week, with investors pulling a net $9 million from its funds.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
JPMorgan 4 $5.09B 24.91%
First Trust 1 $2.53B 12.36%
iShares 1 $2.11B 10.29%
Fidelity 2 $1.00B 4.89%
Convergence 1 $920M 4.50%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Convergence $8M
Federated Hermes $7M
JPMorgan $7M
Outflows
Simplify -$9M
John Hancock -$3M
ProShares -$3M

For a deeper dive into these trends, access our FREE, in-depth EQ: Specialty 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.