Alternative ETF Weekly Recap: Investors Buy the Dip on Short Volatility

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Weekly Channel Summary

The Alternative ETF channel, consisting of 47 ETFs across 28 brands, oversees a total of $11.6B in Assets Under Management (AUM). Overall sentiment remains positive, as the channel recorded +$124M in 5-Day Flows. Year-to-date (YTD), the channel has gathered +$963M, contributing to an impressive +$5.09B in 1-Year Net Flows.

This Week’s Performance Leaders and Laggards

The inverse performance relationship between Volatility – Short and Volatility – Long continued to define the channel’s risk profile. Volatility – Short slightly outperformed this week (-0.46%) compared to Volatility – Long (-1.25%), though Long strategies maintain a commanding +31.39% YTD advantage. Among the Absolute Return categories, Managed Futures led the group, posting a +0.63% weekly gain.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Managed Futures +0.63% +5.33% +11.66% +15.56% +10.25% +17.85%
Absolute Return – Multi-Strategy +0.47% +0.94% -0.36% +0.62% -0.11% +7.83%
Absolute Return – Event Driven -0.22% -0.23% +0.25% +2.78% +0.35% +7.70%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Short -0.46% -9.57% -10.36% -7.84% -14.06% -1.54%
Alternative: Volatility – Long -1.25% +20.72% +17.23% +0.85% +31.39% -35.28%

Top & Bottom 5 ETFs by Weekly Performance

At the individual ETF level, WZRD (Opportunistic Trader ETF) posted the strongest performance, rocketing +12.68% for the week. Conversely, UVIX (2x Long VIX Futures ETF) and QIS (Simplify Multi-QIS Alternative ETF) suffered the largest weekly drawdowns at -4.70% and -3.87%, respectively.

Ticker Fund Name WTD Performance
Top Performers
WZRD Opportunistic Trader ETF +12.68%
SCLS Stoneport Advisors Commodity Long Short ETF +4.64%
WTIP WisdomTree Inflation Plus Fund +2.71%
VXZ iPath Series B S&P 500 VIX Mid-Term Futures ETN +2.01%
VIXM ProShares VIX Mid-Term Futures ETF +2.00%
Bottom Performers
UVIX 2x Long VIX Futures ETF -4.70%
QIS Simplify Multi-QIS Alternative ETF -3.87%
UVXY ProShares Ultra VIX Short-Term Futures ETF -3.34%
HFMF Unlimited HFMF Managed Futures ETF -2.10%
ZVOL Volatility Premium Plus ETF -2.04%

Analyzing the Weekly Flows

Net flows for the week totaled +$124M. Interestingly, Volatility – Short attracted the most capital with +$103M in inflows. This is a highly contrarian move from investors buying the dip, considering the category’s poor recent and YTD performance. Meanwhile, Volatility – Long saw the largest outflows at -$58M, pointing to strong profit-taking after massive YTD gains. The Absolute Return categories combined to gather a solid +$79M for the week.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Managed Futures 16 $6.3B +$67M +$831M +$1,446M +$1,218M +$2,957M
Absolute Return – Multi-Strategy 11 $1.9B +$12M +$87M +$42M +$90M +$334M
Absolute Return – Event Driven 9 $0.5B $0M +$2M $0M -$12M +$35M

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Short 5 $1.2B +$103M +$147M +$48M +$102M -$587M
Alternative: Volatility – Long 6 $1.7B -$58M -$321M -$336M -$435M +$2,355M

Top & Bottom 5 ETFs by 5-Day Flow

The most targeted individual fund was UVXY, which gathered +$89M in net inflows, representing a massive 32.67% of its AUM in just five days. The fund shedding the most capital was UVIX with -$72M out the door, followed closely by VXX losing -$49M.

Ticker Fund Name 5-Day Flow
Inflows
UVXY ProShares Ultra VIX Short-Term Futures ETF +$89M
SVIX -1x Short VIX Futures ETF +$76M
KMLM KraneShares Mount Lucas Managed Futures Index Strategy ETF +$34M
DBMF IMGP DBi Managed Futures Strategy ETF +$28M
SVXY ProShares Short VIX Short-Term Futures ETF +$22M
Outflows
UVIX 2x Long VIX Futures ETF -$72M
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN -$49M
VIXY ProShares VIX Short-Term Futures ETF -$28M
CTA Simplify Managed Futures Strategy ETF -$1M
CUSD CrossingBridge Ultra-Short Duration ETF -$1M

Issuer League Table Update

The Alternative ETF space remains top-heavy with iM commanding a robust 28.34% market share on $3.29B in AUM. Simplify sits in second place capturing 17.45% of the market with $2.03B. For the week, ProShares led the board in asset gathering (+$85M), while iPath suffered the worst drawdowns, bleeding -$49M.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $3.29B 28.34%
Simplify 4 $2.03B 17.45%
New York Life Investments 2 $1.01B 8.73%
ProShares 6 $0.86B 7.45%
iPath 2 $0.73B 6.26%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
ProShares +$85M
KraneShares +$34M
iM +$28M
Outflows
iPath -$49M
CrossingBridge Funds -$1M
SEI $0M

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.