Alternative ETF Recap: $225M Inflows, iM’s Dominance, and the Short Vol Trade

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Weekly Channel Summary

The Alternative ETF channel encompasses 47 ETFs managed across 28 different issuers, holding a combined Total AUM of $13.2B. This week, the space saw net inflows of $225M. This ongoing accumulation of assets brings the YTD channel flow to $2.86B and the 1-Year Flow to an impressive $5.73B, signaling robust, sustained investor appetite for alternative strategies within the ETF wrapper over the past 12 months.

This Week’s Performance Leaders and Laggards

The inverse performance relationship between the Volatility categories was on full display this week. Volatility – Short posted a positive WTD return of 2.43% (despite being down -4.98% YTD), while Volatility – Long struggled, dropping -5.54% for the week (pushing its YTD loss to -3.70%). Among the Absolute Return categories, Absolute Return – Event Driven was the sole category to eke out a positive WTD gain at 0.05%.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Event Driven 0.05% 0.37% 1.09% 2.17% 1.76% 6.68%
Absolute Return – Managed Futures -0.68% 2.23% 6.84% 17.93% 14.02% 25.74%
Absolute Return – Multi-Strategy -1.27% -0.80% -2.43% 1.16% 0.66% 12.03%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Short 2.43% 4.52% -1.01% 10.41% -4.98% 23.63%
Alternative: Volatility – Long -5.54% -9.87% -8.26% -30.15% -3.70% -45.95%

Top & Bottom 5 ETFs by Weekly Performance

Drilling down to individual fund performance, the best-performing ETF for the week was the SVIX (-1x Short VIX Futures ETF), gaining 5.55%, directly benefiting from the strength in the short volatility trade. Conversely, the two worst-performing ETFs were WZRD (Opportunistic Trader ETF), which plummeted -13.01%, and UVIX (2x Long VIX Futures ETF) at -11.04%, deeply impaired by the weakness in long volatility positioning.

Ticker Fund Name WTD Performance
Top Performers
SVIX -1x Short VIX Futures ETF 5.55%
SVXY ProShares Short VIX Short-Term Futures ETF 2.85%
HF DGA Core Plus Absolute Return ETF 1.63%
ZVOL Volatility Premium Plus ETF 1.52%
VYLD Inverse Vix Short-Term Futures ETN 1.23%
Bottom Performers
WZRD Opportunistic Trader ETF -13.01%
UVIX 2x Long VIX Futures ETF -11.04%
UVXY ProShares Ultra VIX Short-Term Futures ETF -8.26%
QIS Simplify Multi-QIS Alternative ETF -6.07%
VIXY ProShares VIX Short-Term Futures ETF -5.51%

Analyzing the Weekly Flows

Investors added a net $225M to Alternative ETFs over the past 5 days. The most favored category by a wide margin was Absolute Return – Managed Futures, gathering $186M (bringing its YTD haul over $2.1B). Interestingly, we observed contrarian behavior in the volatility trades. Volatility – Long brought in $72M despite being the worst-performing category this week, signaling buyers stepping into the dip. At the same time, Volatility – Short saw the largest net outflows at ($35M), indicating deliberate profit-taking from investors cashing out on the category’s strong weekly performance (+2.43%). Among the remaining Absolute Return categories, Multi-Strategy took in a modest $2M while Event Driven flows were flat at $0M.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Managed Futures 16 $7.3B $186M $368M $1,670M $2,107M $3,218M
Absolute Return – Multi-Strategy 11 $2.4B $2M $345M $510M $520M $740M
Absolute Return – Event Driven 9 $0.4B $0M ($6M) ($18M) ($35M) ($6M)

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Long 6 $1.9B $72M $495M $454M $306M $2,492M
Alternative: Volatility – Short 5 $1.1B ($35M) ($111M) $14M ($37M) ($715M)

Top & Bottom 5 ETFs by 5-Day Flow

On a product level, DBMF (IMGP DBi Managed Futures Strategy ETF) led the entire channel by gathering a massive $148M in new assets over just 5 days, continuing its strong YTD momentum. On the flip side, the largest capital destruction came via outflows in UVXY (ProShares Ultra VIX Short-Term Futures ETF) dropping -$30M, and SVIX (-1x Short VIX Futures ETF) losing -$24M.

Ticker Fund Name 5-Day Flow
Inflows
DBMF IMGP DBi Managed Futures Strategy ETF $148M
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN $81M
UVIX 2x Long VIX Futures ETF $22M
KMLM KraneShares Mount Lucas Managed Futures Index Strategy ETF $9M
CTA Simplify Managed Futures Strategy ETF $9M
Outflows
UVXY ProShares Ultra VIX Short-Term Futures ETF ($30M)
SVIX -1x Short VIX Futures ETF ($24M)
SVOL Simplify Volatility Premium ETF ($11M)
HDG ProShares Hedge Replication ETF ($2M)
VIXM ProShares VIX Mid-Term Futures ETF ($1M)

Issuer League Table Update

iM maintains dominance as the top issuer in the space with 29.08% market share and $3.83B in AUM, fueled further by claiming the most weekly inflows ($148M). In the number two slot, Simplify holds 17.37% share with $2.29B in AUM. Conversely, ProShares experienced the largest structural bleed among issuers this week, with net outflows reaching -$33M across its ETF lineup.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $3.83B 29.08%
Simplify 4 $2.29B 17.37%
New York Life Investments 2 $1.24B 9.40%
ProShares 6 $1.08B 8.17%
Franklin 1 $0.91B 6.89%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iM $148M
iPath $81M
First Trust $10M
Outflows
ProShares -$33M
Volatility Shares -$2M
Simplify -$1M

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.