Overall Market Snapshot
The Alternative Absolute Return ETF market currently comprises 33 funds from 23 different issuers, with total assets under management (AUM) standing at $6.0 billion as of August 29, 2025. The pace of product development remains active, with six new ETFs launched in the past three months.
Performance Analysis
This week saw divergent performance across the absolute return categories. The Event-Driven category posted a modest gain of 0.07%, while Multi-Strategy and Managed Futures experienced losses of -0.43% and -0.21%, respectively. Year-to-date, Event-Driven strategies lead with a 5.55% return, followed by Multi-Strategy at 1.46%, while Managed Futures remains slightly down at -0.44%.
Performance within these categories shows significant dispersion. For the week, the top-performing ETF was the Opportunistic Trader ETF (WZRD) with a 1.12% gain, while the Simplify Multi-QIS Alternative ETF (QIS) was the largest laggard, down -3.17%. On a year-to-date basis, the NYLI Merger Arbitrage ETF (MNA) is the clear leader, boasting an 8.26% return. In stark contrast, the Simplify Multi-QIS Alternative ETF (QIS) is the worst performer, having declined by -18.43% so far this year.
Flows and AUM Trends
The absolute return space attracted a total of $118 million in net inflows this week, bringing the year-to-date total to a robust $1.21 billion.
The Managed Futures category was the primary driver of this week’s inflows, pulling in a substantial $128 million. This strong weekly figure builds on its positive momentum over the last 30 days ($237M) and year-to-date ($1.20B), signaling sustained investor interest in the strategy. In contrast, the Multi-Strategy and Event-Driven categories saw minor outflows of -$8 million and -$1 million, respectively. While Event-Driven strategies saw a small outflow this week, this appears to be minor profit-taking, as the category has seen positive flows over the last 90 days ($8M).
The funds with the largest net inflows for the week were:
- IMGP DBi Managed Futures Strategy ETF (DBMF): +$125M
- Simplify Managed Futures Strategy ETF (CTA): +$3M
The funds with the largest net outflows for the week were:
- NYLI Hedge Multi-Strategy Tracker ETF (QAI): -$8M
- ProShares Merger ETF (MRGR): -$1M
Issuer Landscape
The issuer landscape remains concentrated among a few key players. iM leads with a 25.01% market share, followed closely by Simplify at 21.57% and New York Life Investments at 17.12%.
This week, iM was the dominant issuer in terms of flows, capturing $125 million, which aligns with the strong inflows into its flagship managed futures fund. Simplify also saw positive inflows of $3 million. On the other end of the spectrum, New York Life Investments experienced the largest outflows, shedding $8 million for the week.
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.
