Alternative Market Pulse: Managed Futures Lead as Volatility Strategies Clash

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Weekly Channel Summary

The Alternative ETF Channel currently represents $12.0B in total Assets Under Management (AUM) across 47 ETFs and 28 unique issuing brands. Over the past five days, the channel experienced solid net inflows totaling $303M. This builds on a longer-term trend of steady asset gathering, with Year-to-Date (YTD) flows sitting at $1.64B and impressive 1-Year flows reaching $4.62B.

This Week’s Performance Leaders and Laggards

This week showcased a distinct inverse relationship between volatility strategies. Alternative: Volatility – Short funds gained 2.82% WTD despite a challenging YTD environment (-8.17%). Conversely, Alternative: Volatility – Long funds struggled for the week, dropping -6.37%, even though they remain positive YTD at 4.72%. Among the Absolute Return subgroups, the Event Driven category led the pack, managing to post a positive 0.37% return in a generally muted week for the broader multi-strategy and managed futures spaces.

Absolute Return Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Absolute Return – Event Driven 0.37% 0.89% 0.94% 2.19% 1.41% 8.61%
Absolute Return – Managed Futures -0.69% -1.04% 6.53% 11.93% 9.84% 21.48%
Absolute Return – Multi-Strategy -2.06% -3.06% -3.12% -1.24% -1.04% 11.67%

Volatility Category Performance

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Alternative: Volatility – Short 2.82% 3.03% -8.69% 4.00% -8.17% 38.12%
Alternative: Volatility – Long -6.37% -11.24% 5.80% -23.35% 4.72% -53.37%

Top & Bottom 5 ETFs by Weekly Performance

The single best-performing ETF for the week was SVIX (-1x Short VIX Futures ETF), gaining 6.40%. On the downside, the two worst performers were WZRD (Opportunistic Trader ETF) plummeting -25.20% and UVIX (2x Long VIX Futures ETF) dropping -12.44%. The performance struggles of UVIX perfectly reflect the pain felt across the Volatility – Long category this week.

Ticker Fund Name WTD Performance
Top Performers
SVIX -1x Short VIX Futures ETF 6.40%
SVXY ProShares Short VIX Short-Term Futures ETF 3.15%
ZVOL Volatility Premium Plus ETF 2.35%
ASGM Virtus AlphaSimplex Global Macro ETF 2.11%
HDG ProShares Hedge Replication ETF 1.73%
Bottom Performers
WZRD Opportunistic Trader ETF -25.20%
UVIX 2x Long VIX Futures ETF -12.44%
UVXY ProShares Ultra VIX Short-Term Futures ETF -9.09%
VIXY ProShares VIX Short-Term Futures ETF -6.08%
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN -6.06%

Analyzing the Weekly Flows

The channel recorded a net flow of $303M this week. Interestingly, the category taking in the most fresh capital was Alternative: Volatility – Long at $218M. This strongly indicates contrarian behavior, as investors bought into the category despite its significant weekly underperformance. On the flip side, the largest outflows were seen in the Alternative: Volatility – Short category, bleeding ($51M); this suggests aggressive profit-taking from investors cashing in on its strong weekly gains. Absolute Return funds also saw mixed action, heavily weighted towards Managed Futures taking in $132M.

Absolute Return Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Absolute Return – Managed Futures 16 $6.8B $132M $470M $1,552M $1,727M $3,021M
Absolute Return – Multi-Strategy 11 $2.0B $6M $71M $167M $163M $406M
Absolute Return – Event Driven 9 $0.4B ($2M) ($13M) ($24M) ($25M) $2M

Volatility Category Flows

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Alternative: Volatility – Long 6 $1.5B $218M $91M ($343M) ($314M) $2,693M
Alternative: Volatility – Short 5 $1.2B ($51M) ($17M) $142M $86M ($1,505M)

Top & Bottom 5 ETFs by 5-Day Flow

At the individual fund level, UVIX saw the highest absolute influx of money, gathering $121M (representing a massive 32.60% of its AUM) amid the contrarian buying spree. Conversely, VXX and SVIX experienced the harshest drawdowns, shedding ($51M) and ($45M) respectively over the last five trading days.

Ticker Fund Name 5-Day Flow
Inflows
UVIX 2x Long VIX Futures ETF $121M
UVXY ProShares Ultra VIX Short-Term Futures ETF $107M
CTA Simplify Managed Futures Strategy ETF $90M
VIXY ProShares VIX Short-Term Futures ETF $44M
DBMF iMGP DBi Managed Futures Strategy ETF $37M
Outflows
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN ($51M)
SVIX -1x Short VIX Futures ETF ($45M)
SVOL Simplify Volatility Premium ETF ($13M)
ISMF iShares Managed Futures Active ETF ($5M)
VIXM ProShares VIX Mid-Term Futures ETF ($3M)

Issuer League Table Update

iM maintains its iron grip as the top issuer in the space with an impressive 29.38% market share, amounting to $3.53B in assets. Simplify follows comfortably in second place with 18.34% of the market pie and $2.20B. When assessing the flow velocity for the week, ProShares took the top spot, gathering a significant $156M. Meanwhile, iPath faced the strongest headwinds, seeing outflows of ($51M).

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iM 1 $3.53B 29.38%
Simplify 4 $2.20B 18.34%
New York Life Investments 2 $1.04B 8.67%
ProShares 6 $0.90B 7.46%
Volatility Shares 3 $0.76B 6.34%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
ProShares $156M
Simplify $76M
Volatility Shares $76M
Outflows
iPath ($51M)
iShares ($5M)
First Trust ($4M)

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.