Managed Futures Drive Alternative ETFs to $10B AUM Milestone

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Weekly Channel Summary

The Alternative ETF Channel continues to show significant scale, currently managing $10.0 billion in total Assets Under Management (AUM) across 46 ETFs and 28 distinct issuers. The channel experienced a productive start to the year, securing $70 million in net inflows over the past week, which accounts for the majority of the $113 million in YTD flows recorded thus far. This activity builds upon a strong year of growth, with the channel attracting $4.22 billion in net new money over the past year. The current week’s flow of $70 million reflects sustained interest in diversified alternative strategies as investors navigate early-year market shifts.

This Week’s Performance Leaders and Laggards

Performance within the Alternative channel was characterized by a clear divergence between trend-following and volatility-based strategies. There was a notable inverse relationship between Volatility categories this week: Alternative: Volatility – Short gained 1.31% (YTD 1.88%), while Alternative: Volatility – Long fell -1.70% (YTD -3.47%). The Absolute Return – Managed Futures category led the broader channel with a strong weekly return of 1.89%, as trend-following signals across asset classes proved profitable.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Managed Futures 1.89% 4.04% 4.96% 11.44% 2.37% 7.16%
Absolute Return – Multi-Strategy 0.71% 0.58% 0.41% 2.38% 1.15% 4.26%
Absolute Return – Event Driven 0.22% 0.29% 1.57% 3.79% 0.22% 8.81%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Short 1.31% 10.08% 9.81% 25.49% 1.88% 2.70%
Alternative: Volatility – Long -1.70% -17.30% -23.32% -39.92% -3.47% -40.50%

Top & Bottom 5 ETFs by Weekly Performance

At the individual fund level, the top performer was a managed futures fund, the Unlimited HFMF Managed Futures ETF (HFMF), which returned 4.14% WTD. Conversely, the two worst-performing ETFs were the Opportunistic Trader ETF (WZRD), which fell -6.86%, and the 2x Long VIX Futures ETF (UVIX), which dropped -3.22%, illustrating the steep losses faced by long-volatility and specific opportunistic strategies this week.

Ticker Fund Name WTD Performance
Top Performers
HFMF Unlimited HFMF Managed Futures ETF 4.14%
AHLT American Beacon AHL Trend ETF 4.00%
TFPN Blueprint Chesapeake Multi-Asset Trend ETF 2.83%
ASGM Virtus AlphaSimplex Global Macro ETF 2.65%
CTA Simplify Managed Futures Strategy ETF 2.49%
Bottom Performers
WZRD Opportunistic Trader ETF -6.86%
UVIX 2x Long VIX Futures ETF -3.22%
UVXY ProShares Ultra VIX Short-Term Futures ETF -1.87%
VIXM ProShares VIX Mid-Term Futures ETF -1.39%
VXZ iPath Series B S&P 500 VIX Mid-Term Futures ETN -1.37%

Analyzing the Weekly Flows

Total net flow for the channel was positive at $70 million this week. Investor behavior showed strong conviction in performance-driven strategies, with Absolute Return – Managed Futures receiving the most inflows at $82 million. This was not a contrarian move, as the category was also the channel’s top performer. Conversely, the Alternative: Volatility – Short category saw the largest outflows of -$31 million. Given the category’s positive weekly return, this activity suggests significant profit-taking by investors. The “Absolute Return” categories together saw a net flow of $72 million, dominated by the trend-following Managed Futures segment.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Managed Futures 15 $4.8B $82M $366M $619M $137M $2,085M
Absolute Return – Event Driven 9 $0.5B -$1M $11M $25M -$1M $8M
Absolute Return – Multi-Strategy 11 $1.8B -$9M -$55M $3M -$9M $250M

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Long 6 $1.7B $28M $145M -$513M $25M $2,339M
Alternative: Volatility – Short 5 $1.2B -$31M -$98M -$112M -$39M -$460M

Top & Bottom 5 ETFs by 5-Day Flow

The top inflow leader was the IMGP DBi Managed Futures Strategy ETF (DBMF), which gathered $62 million, representing 2.95% of its AUM. On the downside, the top two ETFs for outflows were short-volatility products: the -1x Short VIX Futures ETF (SVIX) saw -$15 million in outflows, followed by the ProShares Short VIX Short-Term Futures ETF (SVXY) with -$11 million in net redemptions.

Ticker Fund Name 5-Day Flow
Inflows
DBMF IMGP DBi Managed Futures Strategy ETF $62M
UVXY ProShares Ultra VIX Short-Term Futures ETF $10M
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN $10M
FMF First Trust Managed Futures Strategy Fund $10M
FAAR First Trust Alternative Absolute Return Strategy ETF $5M
Outflows
SVIX -1x Short VIX Futures ETF -$15M
SVXY ProShares Short VIX Short-Term Futures ETF -$11M
QAI NYLI Hedge Multi-Strategy Tracker ETF -$10M
SVOL Simplify Volatility Premium ETF -$4M
IMF Invesco Managed Futures Strategy ETF -$4M

Issuer League Table Update

The competitive landscape remains top-heavy, with the top two issuers controlling over 40% of the channel’s assets. IM leads with a 21.91% market share and $2.17 billion in AUM, followed closely by Simplify with a 19.02% share and $1.89 billion in AUM. IM was also the dominant force in asset gathering this week, securing $62 million in net inflows, while New York Life Investments saw the largest weekly outflows at -$12 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
IM 1 $2.17B 21.91%
Simplify 3 $1.89B 19.02%
New York Life Investments 2 $1.04B 10.47%
ProShares 6 $0.95B 9.58%
iPath 2 $0.65B 6.59%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
IM $62M
First Trust $15M
iPath $11M
Outflows
New York Life Investments -$12M
Volatility Shares -$11M
Simplify -$4M

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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.