Volatility Funds See Divergent Fortunes as VXX Leads Inflows

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Weekly Channel Summary

The Alternatives channel, comprising 49 ETFs from 28 issuers, ended the week with total assets of $13.64 billion. The category attracted $145 million in net inflows over the past five days, contributing to a strong year-to-date haul of $4.07 billion. Over the last twelve months, investors have added a total of $4.89 billion to the channel.

This Week’s Performance Leaders and Laggards

It was a challenging week for most Alternatives categories, with Volatility – Short funds being the sole group to post a gain, rising 1.16%. Conversely, Volatility – Long strategies were the worst performers, declining 3.91% for the week. The largest category, Managed Futures, also finished in the red with a modest loss of 0.63%, though it maintains a strong year-to-date return of 11.33%.

Absolute Return Performance Snapshot

Absolute Return WTD 1 Month 3 Month 6 Month YTD 1 Year
Multi-Strategy -0.17% 1.35% 0.88% 2.82% 7.51% 13.54%
Event Driven -0.42% 0.13% 0.35% 1.51% 2.52% 3.30%
Managed Futures -0.63% 2.13% 0.31% 0.69% 11.33% 20.49%

Volatility Performance Snapshot

Volatility WTD 1 Month 3 Month 6 Month YTD 1 Year
Vol – Short 1.16% 8.20% 11.78% 15.19% 9.91% 21.01%
Vol – Long -3.91% -19.36% -29.38% -41.42% -36.74% -53.15%

Top & Bottom 5 ETFs by Weekly Performance

The performance divergence in volatility products was evident at the fund level, with the -1x Short VIX Futures ETF (SVIX) leading all funds with a 3.19% gain. At the opposite end of the spectrum, the 2x Long VIX Futures ETF (UVIX) was the week’s biggest laggard, falling 6.40%. The Simplify Multi-QIS Alternative ETF (QIS) also posted a significant loss of 6.02%.

Ticker Fund Name WTD Performance
Top Performers
SVIX -1x Short VIX Futures ETF 3.19%
ZVOL Volatility Premium Plus ETF 2.79%
JPFP JPMorgan Managed Futures Plus ETF 1.59%
SVXY ProShares Short VIX Short-Term Futures ETF 1.59%
ASGM Virtus AlphaSimplex Global Macro ETF 1.59%
Bottom Performers
UVIX 2x Long VIX Futures ETF -6.40%
QIS Simplify Multi-QIS Alternative ETF -6.02%
UVXY ProShares Ultra VIX Short-Term Futures ETF -4.90%
WZRD Opportunistic Trader ETF -4.44%
CTA Simplify Managed Futures Strategy ETF -3.14%

Analyzing the Weekly Flows

Investors added a net $145 million to the Alternatives channel this week, with demand concentrated in volatility and managed futures strategies. Despite their poor weekly performance, Volatility – Long funds led inflows, gathering $64 million in new assets. Managed Futures funds continued their strong asset-gathering trend, pulling in another $46 million, while Multi-Strategy products added $30 million.

Absolute Return Flows Summary

Absolute Return Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Managed Futures 16 $7.78B $46M $42M $548M $2,818M $3,596M
Multi-Strategy 14 $2.96B $30M $73M $431M $954M $1,206M
Event Driven 8 $430M -$0M $3M -$1M -$28M -$3M

Volatility Flows Summary

Volatility Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Vol – Long 6 $1.40B $64M $414M $231M $504M $453M
Vol – Short 5 $1.07B $4M -$39M -$134M -$182M -$365M

Top & Bottom 5 ETFs by 5-Day Flow

The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) was the most popular fund, attracting $49 million in fresh capital. The iMGP DBi Managed Futures Strategy ETF (DBMF) also saw significant interest, with inflows of $37 million. On the other hand, the Simplify Managed Futures Strategy ETF (CTA) and the 2x Long VIX Futures ETF (UVIX) saw the largest redemptions, with outflows of $27 million and $11 million, respectively.

Ticker Fund Name 5-Day Flow
Inflows
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN $49M
DBMF iMGP DBi Managed Futures Strategy ETF $37M
UVXY ProShares Ultra VIX Short-Term Futures ETF $20M
LALT First Trust Multi-Strategy Alternative ETF $13M
KMLM KraneShares Mount Lucas Managed Futures Index Strategy ETF $13M
Outflows
CTA Simplify Managed Futures Strategy ETF -$27M
UVIX 2x Long VIX Futures ETF -$11M
SVIX -1x Short VIX Futures ETF -$2M
QALT SEI DBi Multi-Strategy Alternative ETF -$0M
EVNT AltShares Event-Driven ETF -$0M

Issuer League Table Update

iM continues to dominate the Alternatives space with a 29.56% market share, followed by Simplify, which holds a 15.67% share. iPath was the top asset gatherer for the week, bringing in $49 million, driven by a single product. In contrast, Simplify experienced the largest net outflows among issuers, with investors pulling $26 million from its fund lineup.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $4.03B 29.56%
Simplify 5 $2.14B 15.67%
New York Life Investments 2 $1.27B 9.34%
Franklin 1 $1.05B 7.73%
ProShares 6 $972M 7.12%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iPath $49M
iM $37M
ProShares $33M
Outflows
Simplify -$26M
Volatility Shares -$13M
SEI -$0M

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.