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.
