iShares Leads Inflows as Investors Favor Long/Short Over Hedged Strategies

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Weekly Channel Summary

The Specialty Equity channel encompasses 81 ETFs from 54 issuers, with total assets under management reaching $21.87 billion. The channel continued its strong asset-gathering trend, adding $206 million in net inflows over the past week. This brings year-to-date net flows to a robust $6.80 billion and extends the one-year total to $8.51 billion.

This Week’s Performance Leaders and Laggards

Both Specialty Equity categories posted negative returns for the week amid broader market shifts. The Long | Short category declined by -0.86%, performing slightly better than the Hedged category, which fell by -1.22%. Despite the weekly downturn, both groups remain solidly positive on a year-to-date basis, with returns of 8.85% and 5.63% respectively.

Category Performance Snapshot

Category WTD 1 Month 3 Month 6 Month YTD 1 Year
Long | Short -0.86% -0.35% 4.88% 8.12% 8.85% 17.99%
Hedged -1.22% 0.09% 7.53% 4.46% 5.63% 16.47%

Top & Bottom 5 ETFs by Weekly Performance

The Leatherback Long/Short Alternative Yield ETF (LBAY) was the standout performer, delivering a 2.64% gain for the week. Several other funds, including Hedgeye 130/30 Equity ETF (HELS), also managed positive returns against the channel’s trend. On the other end of the spectrum, the Man Active Emerging Markets Alternative ETF (MEMA) experienced the largest decline, falling -5.48%.

Ticker Fund Name WTD Performance
Top Performers
LBAY Leatherback Long/Short Alternative Yield ETF 2.64%
HELS Hedgeye 130/30 Equity ETF 2.19%
BTAL AGF U.S. Market Neutral Anti-Beta Fund 1.55%
VAMO Cambria Value & Momentum ETF 1.35%
LSEQ Harbor Long-Short Equity ETF 1.33%
Bottom Performers
MEMA Man Active Emerging Markets Alternative ETF -5.48%
CLIX ProShares Long Online/Short Stores ETF -3.62%
HBTA Horizon Expedition Plus ETF -3.43%
AINT FINQ DOLLAR NEUTRAL U.S. Large Cap AI-Managed Equity ETF -3.28%
ORR Militia Long/Short Equity ETF -3.13%

Analyzing the Weekly Flows

Investors allocated a net $206 million to the Specialty Equity channel this week, continuing a strong pattern of inflows for the year. A clear divergence emerged between strategy types, as Long | Short ETFs attracted $313 million in new assets. Conversely, Hedged strategies faced headwinds, experiencing net redemptions totaling -$106 million for the period.

Category Flows Summary

Category Fund Count AUM 5 Day 30 Day 90 Day YTD 1 Year
Long | Short 28 $10.46B $313M $5,416M $5,725M $6,377M $6,681M
Hedged 53 $11.41B -$106M -$60M -$64M $419M $1,831M

Top & Bottom 5 ETFs by 5-Day Flow

The iShares Flexible Equity Active ETF (BFLX) led all funds, pulling in a substantial $168 million in net new assets. Another iShares fund, the Systematic Alternatives Active ETF (IALT), also saw significant demand with $112 million in inflows. On the redemption side, the Anfield Enhanced Market ETF (AEMS) recorded the largest outflow at -$158 million, followed by the Regents Park Hedged Market Strategy ETF (RPHS) with -$44 million in withdrawals.

Ticker Fund Name 5-Day Flow
Inflows
BFLX iShares Flexible Equity Active ETF $168M
IALT iShares Systematic Alternatives Active ETF $112M
HBTA Horizon Expedition Plus ETF $80M
PRAE PlanRock Alternative Growth ETF $41M
CLSE Convergence Long/Short Equity ETF $17M
Outflows
AEMS Anfield Enhanced Market ETF -$158M
RPHS Regents Park Hedged Market Strategy ETF -$44M
CAOS Alpha Architect Tail Risk ETF -$13M
JHDG John Hancock Hedged Equity ETF -$12M
HEQQ JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF -$3M

Issuer League Table Update

iShares and JPMorgan continue to dominate the Specialty Equity landscape, commanding 25.08% and 19.17% of the market share, respectively. iShares was also the week’s biggest asset gatherer, securing $280 million in net inflows across its fund lineup. In contrast, Anfield experienced the largest net outflows among issuers, shedding -$158 million for the week.

Top 5 Issuers by AUM

Brand Fund Count AUM AUM Market Share
iShares 2 $5.49B 25.08%
JPMorgan 3 $4.19B 19.17%
First Trust 1 $2.40B 10.96%
Fidelity 2 $907M 4.15%
Alpha Architect 2 $732M 3.35%

Top & Bottom 3 Issuers by 5-Day Flow

Brand 5-Day Flow
Inflows
iShares $280M
Horizon $80M
PlanRock $41M
Outflows
Anfield -$158M
Regents Park -$44M
Alpha Architect -$13M

For a deeper dive into these trends, access our FREE, in-depth EQ: Specialty 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.