Alternative ETFs Weekly Recap: Volatility Shifts & Strong Inflows

Share

Weekly Channel Summary

The Alternative ETF channel, comprising 47 ETFs managed by 28 distinct issuers, stands at a healthy $12.6 billion in total Assets Under Management (AUM). Flow activity over the past week highlighted strong ongoing interest in alternative strategies, with the space gathering $436 million in net inflows over the past 5 days. This continues a robust trend of accumulation, bringing the 30-day net flows to $1.10 billion and Year-To-Date (YTD) net flows to an impressive $2.21 billion. Over the past 12 months, the channel has accumulated over $5.21 billion in new capital.

This Week’s Performance Leaders and Laggards

This week distinctly highlighted the inverse performance dynamics within the volatility complex. The Alternative: Volatility – Short category led the charge, gaining a robust 2.13% for the week (WTD), despite still sitting in negative territory (-7.33%) for the year. Conversely, the Alternative: Volatility – Long category took a substantial hit, dropping -4.82% over the past 5 days, trimming its YTD gain to 2.68%. Over in the Absolute Return space, Managed Futures was the clear performance leader, notching a 1.18% WTD gain and continuing its dominant YTD run, up 13.44%.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Managed Futures 1.18% 2.91% 10.30% 15.90% 13.44% 25.57%
Absolute Return – Multi-Strategy 0.60% 0.88% -1.24% -0.68% 0.65% 12.39%
Absolute Return – Event Driven -0.09% 0.58% 0.85% 1.89% 1.38% 7.63%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Short 2.13% 9.57% -5.53% 1.42% -7.33% 29.34%
Alternative: Volatility – Long -4.82% -18.91% 0.04% -19.47% 2.68% -49.57%

Top & Bottom 5 ETFs by Weekly Performance

The single best-performing product this week was the QIS (Simplify Multi-QIS Alternative ETF), which surged an impressive 6.10%. It was closely followed by another Managed Futures strategy, CTA. On the flip side, the volatility crunch heavily penalized long volatility funds; the two worst-performing ETFs for the week were UVIX (2x Long VIX Futures ETF) with a sharp -9.68% decline, and UVXY (ProShares Ultra VIX Short-Term Futures ETF) dropping -7.19%.

Ticker Fund Name WTD Performance
Top Performers
QIS Simplify Multi-QIS Alternative ETF 6.10%
CTA Simplify Managed Futures Strategy ETF 6.01%
SVIX -1x Short VIX Futures ETF 4.65%
SCLS Stoneport Advisors Commodity Long Short ETF 3.04%
SVXY ProShares Short VIX Short-Term Futures ETF 2.39%
Bottom Performers
UVIX 2x Long VIX Futures ETF -9.68%
UVXY ProShares Ultra VIX Short-Term Futures ETF -7.19%
VIXY ProShares VIX Short-Term Futures ETF -4.76%
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN -4.74%
WZRD Opportunistic Trader ETF -3.47%

Analyzing the Weekly Flows

Investor appetite for alternative strategies brought $436 million of new net capital into the channel this week. The Absolute Return – Multi-Strategy category led all sub-groups, scooping up $332 million in new assets. Interestingly, despite being the top-performing category of the week, the Alternative: Volatility – Short category suffered the largest net outflows (-$11 million). This dynamic strongly suggests that investors were actively profit-taking after the segment’s positive weekly run. Overall, the Absolute Return side of the equation maintained solid momentum, taking in robust inflows across both Multi-Strategy and Managed Futures.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Multi-Strategy 11 $2.4B $332M $373M $497M $508M $726M
Absolute Return – Managed Futures 16 $7.0B $46M $282M $1,474M $1,794M $3,018M
Absolute Return – Event Driven 9 $0.4B ($4M) ($15M) ($22M) ($33M) ($5M)

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Long 6 $1.6B $73M $616M ($77M) ($109M) $2,732M
Alternative: Volatility – Short 5 $1.2B ($11M) ($159M) $112M $50M ($1,264M)

Top & Bottom 5 ETFs by 5-Day Flow

At the fund level, the QAI (NYLI Hedge Multi-Strategy Tracker ETF) and FLSP (Franklin Systematic Style Premia ETF) were the premier destinations for new capital, each pulling in a staggering $165 million. This represented a massive >20% AUM growth in just 5 days for both funds. Conversely, the largest outflows hit the CTA (Simplify Managed Futures Strategy ETF) losing $15 million, followed closely by the SVIX (-1x Short VIX Futures ETF), which saw $11 million walk out the door as investors locked in weekly gains.

Ticker Fund Name 5-Day Flow
Inflows
QAI NYLI Hedge Multi-Strategy Tracker ETF $165M
FLSP Franklin Systematic Style Premia ETF $165M
UVIX 2x Long VIX Futures ETF $35M
DBMF IMGP DBi Managed Futures Strategy ETF $28M
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN $28M
Outflows
CTA Simplify Managed Futures Strategy ETF ($15M)
SVIX -1x Short VIX Futures ETF ($11M)
ARB AltShares Merger Arbitrage ETF ($6M)
VIXM ProShares VIX Mid-Term Futures ETF ($1M)
QALT SEI DBI Multi-Strategy Alternative ETF $0M

Issuer League Table Update

When examining the issuer landscape, iM remains the undisputed category titan holding a 28.02% market share with $3.54 billion in AUM. Simplify takes the number two spot with 18.63% of the market pie and $2.36 billion. Looking at the weekly flow battleground, New York Life Investments was the standout winner, gathering $167 million in inflows, closely trailed by Franklin. On the lower end, Simplify saw the most severe pressure over the past 5 days with total outflows of -$13 million.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $3.54B 28.02%
Simplify 4 $2.36B 18.63%
New York Life Investments 2 $1.22B 9.64%
ProShares 6 $0.92B 7.25%
Franklin 1 $0.90B 7.10%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
New York Life Investments $167M
Franklin $165M
iPath $28M
Outflows
Simplify ($13M)
Altshares ($6M)
SEI $0M

For a deeper dive into these trends, access our FREE, in-depth Thematic 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.