Overall Market Snapshot The Alternative Absolute Return ETF market currently comprises 32 funds from 22 different issuers, with total assets under management (AUM) standing at $5.2 billion as of August 22, 2025. The space continues to see new entrants, with five new ETFs launched in the past three months.
Performance Analysis This week, the Managed Futures category was the top performer, posting a 1.22% return, followed by Multi-Strategy at 0.47% and Event-Driven strategies at 0.18%. However, year-to-date performance tells a different story, with Event-Driven funds leading with a 6.29% return, while the Managed Futures category is down -0.66%.
Performance divergence within categories remains a key theme. For the week, the First Trust Alternative Absolute Return Strategy ETF (FAAR) was the top performer with a 2.77% gain, while the Opportunistic Trader ETF (WZRD) was the biggest laggard, down -2.66%. Year-to-date, the AltShares Event-Driven ETF (EVNT) is the top performer in the space with a 10.81% return, while the Simplify Multi-QIS Alternative ETF (QIS) is the worst performer, down -15.77%.
Flows and AUM Trends The absolute return category saw net inflows of $41 million for the week, contributing to a total of $106 million over the past 30 days and $1.09 billion year-to-date.
Managed Futures strategies were the primary drivers of weekly inflows, attracting $35 million. This builds on positive momentum over the last 30 days ($118 million) and year-to-date ($1.07 billion), indicating sustained investor interest in the strategy. Event-Driven funds also saw modest inflows of $5 million for the week, while Multi-Strategy funds gathered $1 million.
The top five flow leaders for the week were:
- Simplify Managed Futures Strategy ETF (CTA): +$15M
- IMGP DBi Managed Futures Strategy ETF (DBMF): +$12M
- Virtus Alphasimplex Managed Futures ETF (ASMF): +$8M
- NYLI Merger Arbitrage ETF (MNA): +$7M
- First Trust Multi-Strategy Alternative ETF (LALT): +$1M
The most significant outflow for the week came from the CrossingBridge Pre-Merger SPAC ETF (SPC), which saw a redemption of -$3 million.
Issuer Landscape The issuer landscape remains concentrated, with the top three firms—iM (24.0%), Simplify (22.8%), and New York Life Investments (18.3%)—controlling nearly two-thirds of the market’s AUM.
Simplify led all issuers in weekly flows, attracting $15 million, followed by iM with $12 million. Virtus also saw a notable inflow of $8 million. The continued pace of product innovation is evident, with five new ETFs launched in the last quarter from issuers including Fidelity, Opportunistic, Unlimited, Virtus, and WisdomTree.
The data is sourced from the Altrenative ETF AUM & Flows, Performance, and League Table reports. For a more detailed analysis, including complete lists of individual fund flows and performance metrics, please access the full reports.
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.
