Managed Futures Lead in Net Inflows While Short Volatility Attracts Contrarians

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Weekly Channel Summary

The Alternative ETF channel closed the week with $11B in total Assets Under Management (AUM), distributed across 47 ETFs and 28 unique brands. Net flows for the week were solid, capturing $0.11B ($110M) in new assets. This weekly momentum contributes to a robust Year-To-Date (YTD) flow of $0.90B and a massive 1-Year flow of $4.84B.

This Week’s Performance Leaders and Laggards

Market volatility took center stage this week, driving a sharp wedge between opposing strategies. The Alternative: Volatility – Long category surged with a massive 25.86% gain, pushing its YTD return to 35.75%. Conversely, the Alternative: Volatility – Short category bore the brunt of this spike, suffering an -8.72% drop for the week and falling to -13.07% YTD. Within the Absolute Return segment, Managed Futures was the standout leader, advancing 1.11% over the 5-day period.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Managed Futures 1.11% 4.72% 11.15% 16.19% 9.49% 17.64%
Absolute Return – Event Driven -0.14% 0.04% 0.73% 2.54% 0.54% 7.59%
Absolute Return – Multi-Strategy -1.84% 0.97% -0.94% 0.99% -0.34% 7.13%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Long 25.86% 33.31% 14.25% -5.53% 35.75% -36.32%
Alternative: Volatility – Short -8.72% -11.26% -8.56% -4.59% -13.07% -7.97%

Top & Bottom 5 ETFs by Weekly Performance

The massive spike in market volatility propelled the UVIX (2x Long VIX Futures ETF) to the very top, delivering an outstanding 48.23% WTD return. On the losing side, strategies designed to short volatility or follow multi-asset trends struggled heavily; SVIX (-1x Short VIX Futures ETF) plummeted -20.57%, and TFPN (Blueprint Chesapeake Multi-Asset Trend ETF) fell -7.05%.

Ticker Fund Name WTD Performance
Top 5 Performers
UVIX 2x Long VIX Futures ETF 48.23%
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN 23.79%
FAAR First Trust Alternative Absolute Return Strategy ETF 10.18%
SCLS Stoneport Advisors Commodity Long Short ETF 9.62%
VXZ iPath Series B S&P 500 VIX Mid-Term Futures ETN 5.56%
Bottom 5 Performers
SVIX -1x Short VIX Futures ETF -20.57%
TFPN Blueprint Chesapeake Multi-Asset Trend ETF -7.05%
ZVOL Volatility Premium Plus ETF -5.38%
VYLD Inverse Vix Short-Term Futures ETN -4.63%
SVOL Simplify Volatility Premium ETF -4.31%

Analyzing the Weekly Flows

The channel gathered a total of $110M in net weekly flows, with Absolute Return – Managed Futures absorbing the bulk of incoming capital ($184M). Notably, we observed heavily contrarian flow behavior in the Volatility categories. Despite a severe drop in performance, Alternative: Volatility – Short gathered $87M in inflows, suggesting investors are buying the dip. Meanwhile, Alternative: Volatility – Long saw massive outflows of ($206M) despite its 25.86% surge, heavily indicating profit-taking.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Managed Futures 15 $6.1B $184M $842M $1,376M $1,149M $2,768M
Absolute Return – Multi-Strategy 11 $1.9B $43M $73M $40M $78M $324M
Absolute Return – Event Driven 9 $0.5B $4M $1M $0M ($12M) $35M

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Short 5 $1.1B $87M $39M ($83M) ($1M) ($530M)
Alternative: Volatility – Long 6 $1.6B ($206M) ($244M) ($158M) ($317M) $2,246M

Top & Bottom 5 ETFs by 5-Day Flow

On an individual fund level, DBMF (IMGP DBi Managed Futures Strategy ETF) led the pack with $160M in new assets. Conversely, the aggressive profit-taking on long volatility strategies triggered steep redemptions for UVXY (ProShares Ultra VIX Short-Term Futures ETF) and UVIX (2x Long VIX Futures ETF), which saw outflows of ($121M) and ($82M), respectively.

Ticker Fund Name 5-Day Flow
Top 5 Inflows
DBMF IMGP DBi Managed Futures Strategy ETF $160M
SVIX -1x Short VIX Futures ETF $90M
FLSP Franklin Systematic Style Premia ETF $52M
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN $20M
KMLM KraneShares Mount Lucas Managed Futures Index Strategy ETF $16M
Top 5 Outflows
UVXY ProShares Ultra VIX Short-Term Futures ETF ($121M)
UVIX 2x Long VIX Futures ETF ($82M)
VIXY ProShares VIX Short-Term Futures ETF ($22M)
QAI NYLI Hedge Multi-Strategy Tracker ETF ($9M)
SVXY ProShares Short VIX Short-Term Futures ETF ($5M)

Issuer League Table Update

iM continues to dominate the competitive landscape, retaining the top spot with 28.47% of the market share and $3.20B in total AUM. Simplify follows closely in second place with 18.00% market share ($2.02B). Bolstered by DBMF’s success, iM was also the premier flow-gatherer this week with $160M in inflows. On the other end, ProShares experienced the largest weekly redemptions, shedding -$150M.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $3.20B 28.47%
Simplify 4 $2.02B 18.00%
New York Life Investments 2 $1.02B 9.08%
ProShares 6 $0.76B 6.76%
Franklin 1 $0.66B 5.91%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Top 3 Inflows
iM $160M
Franklin $52M
iPath $20M
Top 3 Outflows
ProShares -$150M
New York Life Investments -$5M
WisdomTree -$4M

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.