Alternative ETF Channel Review: Short Volatility Shines While Investors Pull Capital from Long Volatility

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Weekly Channel Summary

The Alternative ETF channel currently encompasses 48 ETFs managed by 28 issuers, representing a total AUM of $13.1B. Over the past 5 days, the channel experienced solid positive momentum, pulling in net flows of $147M. Year-to-date, the channel has accumulated $3.01B in new assets, contributing to a robust 1-year flow total of $6.02B. This steady pace of asset gathering underscores sustained investor appetite for alternative and non-correlated strategies in the current market environment.

This Week’s Performance Leaders and Laggards

A sharp inverse relationship dictated alternative performance this week, specifically within the volatility space. The Volatility – Short category led the upside, climbing +3.69% for the week, though it still remains slightly negative for the year at -1.62% YTD. Conversely, the Volatility – Long category took a massive hit, plummeting -7.52% and pushing its YTD drawdown to -10.55%. Among the Absolute Return categories, Event Driven was the sole pocket of positive performance, edging out a modest weekly gain of +0.03%.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Event Driven 0.03% 0.36% 1.09% 2.03% 1.79% 6.23%
Absolute Return – Multi-Strategy -0.12% -2.15% -3.04% 0.11% 0.33% 11.68%
Absolute Return – Managed Futures -1.53% -1.02% 3.40% 13.79% 12.19% 24.32%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Short 3.69% 6.18% 3.89% 6.28% -1.62% 29.33%
Alternative: Volatility – Long -7.52% -12.51% -16.43% -24.75% -10.55% -48.09%

Top & Bottom 5 ETFs by Weekly Performance

The single best-performing ETF this week was the SVIX (-1x Short VIX Futures ETF), which surged +9.43%, directly benefiting from the strength in the Volatility – Short segment. On the other end of the spectrum, the two worst-performing funds were the UVIX (2x Long VIX Futures ETF), which cratered -17.35% amid the Volatility – Long selloff, and the QIS (Simplify Multi-QIS Alternative ETF), which dropped -12.30%.

Ticker Fund Name WTD Performance
Top Performers
SVIX -1x Short VIX Futures ETF 9.43%
WZRD Opportunistic Trader ETF 8.33%
SVXY ProShares Short VIX Short-Term Futures ETF 3.02%
ZVOL Volatility Premium Plus ETF 2.89%
VYLD Inverse Vix Short-Term Futures ETN 1.83%
Bottom Performers
UVIX 2x Long VIX Futures ETF -17.35%
QIS Simplify Multi-QIS Alternative ETF -12.30%
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN -8.75%
UVXY ProShares Ultra VIX Short-Term Futures ETF -8.66%
CTA Simplify Managed Futures Strategy ETF -6.37%

Analyzing the Weekly Flows

Net flows for the week totaled $147M across the channel. The Absolute Return – Managed Futures category proved to be the biggest magnet for capital, gathering $196M. Notably, this influx occurred despite the category posting a negative -1.53% weekly return, pointing to contrarian buying or strategic rebalancing by investors. Conversely, the Volatility – Long category suffered the steepest asset drain with ($32M) in outflows; given the category’s abysmal -7.52% performance this week, this heavily suggests investor capitulation rather than standard profit-taking from a well-performing asset.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Managed Futures 16 $7.4B $196M $547M $1,336M $2,303M $3,420M
Absolute Return – Multi-Strategy 12 $2.5B $4M $208M $488M $524M $746M
Absolute Return – Event Driven 9 $0.4B $0M ($1M) ($19M) ($35M) ($8M)

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Short 5 $1.1B ($21M) ($112M) $30M ($58M) ($711M)
Alternative: Volatility – Long 6 $1.7B ($32M) $425M $384M $273M $2,577M

Top & Bottom 5 ETFs by 5-Day Flow

Drilling down to individual products, the AHLT (American Beacon AHL Trend ETF) claimed the top spot by gathering $88M in weekly inflows. On the outflow side, the top two bleeding ETFs were the SVIX (-1x Short VIX Futures ETF) losing ($21M), and the VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) shedding ($16M). It’s particularly notable that SVIX saw massive asset withdrawals despite being the week’s best-performing ETF, strongly indicating profit-taking behavior from its investors.

Ticker Fund Name 5-Day Flow
Inflows
AHLT American Beacon AHL Trend ETF $88M
DBMF IMGP DBi Managed Futures Strategy ETF $82M
CTA Simplify Managed Futures Strategy ETF $16M
KMLM KraneShares Mount Lucas Managed Futures Index Strategy ETF $4M
FAAR First Trust Alternative Absolute Return Strategy ETF $3M
Outflows
SVIX -1x Short VIX Futures ETF ($21M)
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN ($16M)
UVXY ProShares Ultra VIX Short-Term Futures ETF ($14M)
VIXM ProShares VIX Mid-Term Futures ETF ($3M)
ASMF Virtus AlphaSimplex Managed Futures ETF ($1M)

Issuer League Table Update

The competitive landscape for Alternative ETFs is heavily concentrated at the top. The top two issuers command nearly half of the entire channel: iM holds the leading spot with a 29.84% market share and $3.90B in total AUM, followed closely by Simplify, which maintains 16.87% market share and $2.21B in AUM across its 5 products. This week, American Beacon was the standout for attracting assets, pulling in the most weekly inflows at $88M. On the flip side, Volatility Shares felt the largest drain, experiencing -$21M in net outflows.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $3.90B 29.84%
Simplify 5 $2.21B 16.87%
New York Life Investments 2 $1.25B 9.52%
ProShares 6 $0.99B 7.56%
Franklin 1 $0.91B 6.96%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
American Beacon $88M
iM $82M
Simplify $16M
Outflows
Volatility Shares -$21M
ProShares -$17M
iPath -$16M

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.