The Volatility Divide: This Week in Alternative ETFs

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Weekly Channel Summary

The Alternative ETF channel currently houses 47 funds across 28 distinct issuers, capturing $11.7B in Total Assets Under Management (AUM). Over the past week, the segment saw positive momentum, pulling in $110M in 5-day net flows. This continued a strong broader trend, bringing Year-to-Date (YTD) net inflows to $1.09B and extending the impressive 1-year flow total to $4.91B.

This Week’s Performance Leaders and Laggards

This week’s performance was largely defined by the classic inverse relationship between the Volatility sub-categories. The “Alternative: Volatility – Short” category surged, posting a strong 5.94% WTD gain, though it remains down -14.71% YTD. Conversely, the “Alternative: Volatility – Long” category plunged -12.49% WTD, giving back a portion of its substantial 28.14% YTD return. Within the Absolute Return segments, the Managed Futures category led the way, climbing 1.40% for the week.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Managed Futures 1.40% 2.05% 10.63% 14.57% 11.14% 16.69%
Absolute Return – Multi-Strategy 0.79% -1.62% -0.46% 0.06% 0.03% 6.17%
Absolute Return – Event Driven 0.34% 0.11% 0.86% 2.52% 0.86% 7.61%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Short 5.94% -9.95% -15.07% -8.95% -14.71% -8.20%
Alternative: Volatility – Long -12.49% 17.61% 30.67% -0.59% 28.14% -29.64%

Top & Bottom 5 ETFs by Weekly Performance

The single best-performing fund of the week was the -1x Short VIX Futures ETF (SVIX), a short volatility strategy that rallied 12.40%. On the other end of the spectrum, long volatility funds suffered the steepest declines, with the 2x Long VIX Futures ETF (UVIX) and ProShares Ultra VIX Short-Term Futures ETF (UVXY) dropping -23.56% and -17.87%, respectively.

Ticker Fund Name WTD Performance
Top Performers
SVIX -1x Short VIX Futures ETF 12.40%
SVXY ProShares Short VIX Short-Term Futures ETF 6.26%
ZVOL Volatility Premium Plus ETF 4.92%
ASGM Virtus AlphaSimplex Global Macro ETF 3.53%
VYLD Inverse Vix Short-Term Futures ETN 3.32%
Bottom Performers
UVIX 2x Long VIX Futures ETF -23.56%
UVXY ProShares Ultra VIX Short-Term Futures ETF -17.87%
VIXY ProShares VIX Short-Term Futures ETF -12.04%
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN -12.02%
WZRD Opportunistic Trader ETF -5.58%

Analyzing the Weekly Flows

Investors injected a net $110M into the Alternative channel over the last week. The Absolute Return – Multi-Strategy category led all sub-groups with $36M in weekly inflows. Interestingly, we also saw significant inflows into both Volatility categories, with Volatility – Long taking in $35M and Volatility – Short gathering $34M. The allocation into Long Volatility appears to be a contrarian, buy-the-dip trade given the category’s poor weekly performance. Conversely, Absolute Return – Event Driven experienced the largest outflows at -$12M, which could indicate minor profit-taking or reallocation. Overall, the broader Absolute Return group continues to exhibit steady demand, anchored by Managed Futures’ massive $1.47B YTD haul.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Multi-Strategy 11 $2.0B $36M $103M $141M $141M $383M
Absolute Return – Managed Futures 16 $6.4B $18M $461M $1,416M $1,471M $2,865M
Absolute Return – Event Driven 9 $0.4B -$12M -$10M -$22M -$22M $13M

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Long 6 $1.6B $35M -$554M -$675M -$678M $1,961M
Alternative: Volatility – Short 5 $1.2B $34M $253M $183M $174M -$311M

Top & Bottom 5 ETFs by 5-Day Flow

On an individual fund level, the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) dominated, attracting the top inflow of $53M (representing a massive 9.43% of its AUM). Meanwhile, the ProShares VIX Short-Term Futures ETF (VIXY) and the Invesco Managed Futures Strategy ETF (IMF) saw the largest redemptions, shedding -$27M and -$20M in outflows, respectively.

Ticker Fund Name 5-Day Flow
Inflows
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN $53M
FLSP Franklin Systematic Style Premia ETF $39M
DBMF IMGP DBi Managed Futures Strategy ETF $36M
SVIX -1x Short VIX Futures ETF $27M
UVIX 2x Long VIX Futures ETF $21M
Outflows
VIXY ProShares VIX Short-Term Futures ETF -$27M
IMF Invesco Managed Futures Strategy ETF -$20M
MARB First Trust Merger Arbitrage ETF -$11M
UVXY ProShares Ultra VIX Short-Term Futures ETF -$11M
FAAR First Trust Alternative Absolute Return Strategy ETF -$10M

Issuer League Table Update

Looking at the sponsor landscape, iM holds the dominant market share position at 28.31% with $3.30B in AUM, followed by Simplify at 18.03% with $2.10B. For the week, iPath was the biggest winner in the flow column, gathering $53M. Conversely, ProShares saw the heaviest redemptions, posting a weekly net outflow of -$40M.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $3.30B 28.31%
Simplify 4 $2.10B 18.03%
New York Life Investments 2 $1.02B 8.71%
ProShares 6 $0.78B 6.73%
Franklin 1 $0.72B 6.20%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iPath $53M
Volatility Shares $48M
Franklin $39M
Outflows
ProShares -$40M
Invesco -$20M
First Trust -$15M

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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.