Navigating Volatility: Performance and Flow Trends in Specialty ETFs

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Weekly Channel Summary

The EQ: Specialty ETF channel currently oversees $14.2B in total assets across 75 ETFs and 53 distinct issuers. During the final week of the year and into the new year’s start, the channel experienced a healthy wave of activity with $151M in total net weekly inflows. This performance brings the Year-to-Date (YTD) flow total to $14M, while the trailing 1-year period remains robust with $3,327M in total net creations, signaling sustained long-term interest in specialty strategies despite a relatively quiet start to the calendar year.

This Week’s Performance Leaders and Laggards

Performance across the specialty categories was generally negative this week. The Equity: Specialty – Long | Short category emerged as the relative leader, declining only -0.33%. Meanwhile, the Equity: Specialty – Hedged category was the primary laggard, falling -0.89%. Despite the weekly dip, both categories remain in positive territory for the early YTD period, with Long | Short leading at 0.38% compared to 0.17% for Hedged strategies.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Equity: Specialty – Long | Short -0.33% 1.00% 0.54% 4.52% 0.38% 7.94%
Equity: Specialty – Hedged -0.89% 0.31% 1.30% 8.09% 0.17% 12.19%

Top & Bottom 5 ETFs by Weekly Performance

At the individual fund level, the CBLS (Clough Hedged Equity ETF) was the top performer this week, gaining 1.04%. On the downside, the FORH (Formidable ETF) and MSTQ (LHA Market State Tactical Q ETF) were the notable laggards, falling -2.37% and -2.02%, respectively.

Ticker Fund Name WTD Performance
Top Performers
CBLS Clough Hedged Equity ETF 1.04%
HFSP TradersAl Large Cap Equity & Cash ETF 0.87%
HOLA JPMorgan International Hedged Equity Laddered Overlay ETF 0.53%
IALT iShares Systematic Alternatives Active ETF 0.52%
FFLS Future Fund Long/Short ETF 0.39%
Bottom Performers
FORH Formidable ETF -2.37%
MSTQ LHA Market State Tactical Q ETF -2.02%
PRAE PlanRock Alternative Growth ETF -1.73%
SPYC Simplify US Equity PLUS Convexity ETF -1.73%
SPUC Simplify US Equity PLUS Upside Convexity ETF -1.62%

Analyzing the Weekly Flows

The channel recorded a net flow of $151M this week, largely driven by Equity: Specialty – Hedged strategies which captured $137M in net new assets, maintaining a dominant AUM of $10.2B. The Equity: Specialty – Long | Short category also saw positive engagement, adding $15M. While neither category saw net outflows at the aggregate level, individual fund activity showed significant repositioning as the year turned.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Equity: Specialty – Hedged 50 $10.2B $137M $449M $808M $9M $2,770M
Equity: Specialty – Long | Short 24 $3.9B $15M $68M $237M $5M $557M

Top & Bottom 5 ETFs by 5-Day Flow

The top individual inflow recipient was the MSTQ (LHA Market State Tactical Q ETF), which saw a massive $119M in new creations. Conversely, the largest outflows were seen in the CTEF (Castellan Targeted Equity ETF) with -$9M and PRAE (PlanRock Alternative Growth ETF) with -$7M.

Ticker Fund Name 5-Day Flow
Inflows
MSTQ LHA Market State Tactical Q ETF $119M
HELO JPMorgan Hedged Equity Laddered Overlay ETF $17M
FTLS First Trust Long/Short Equity ETF $7M
SPD Simplify US Equity PLUS Downside Convexity ETF $5M
PHEQ Parametric Hedged Equity ETF $5M
Outflows
CTEF Castellan Targeted Equity ETF -$9M
PRAE PlanRock Alternative Growth ETF -$7M
BTAL AGF U.S. Market Neutral Anti-Beta Fund -$5M
LBAY Leatherback Long/Short Alternative Yield ETF -$2M
HEGD Swan Hedged Equity US Large Cap ETF -$2M

Issuer League Table Update

JPMorgan remains the dominant force in the specialty channel with a 27.49% market share, followed by First Trust at 15.23%. During this week, Little Harbor Advisors gathered the most significant weekly inflows with $119M (via MSTQ), while JPMorgan continued its steady accumulation with $17M. On the opposite end, Castellan saw the largest outflows among top issuers, losing -$9M in net assets.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
JPMorgan 3 $3.90B 27.49%
First Trust 1 $2.16B 15.23%
Fidelity 2 $0.78B 5.51%
Simplify 5 $0.65B 4.61%
Swan 1 $0.60B 4.24%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
Little Harbor Advisors $119M
JPMorgan $17M
First Trust $7M
Outflows
Castellan -$9M
PlanRock -$7M
AGF -$5M

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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.