VanEck Australian Long Short Complex ETF (ASX:ALF), trading under the code ALFA, recorded a total return of -0.80% for October 2026, underperforming the S&P/ASX 200 Accumulation Index benchmark by 2.18% as the benchmark rose 1.38% over the same period, according to the fund's monthly disclosure.

Key Points

  • ALFA returned -0.80% in October 2026, versus the S&P/ASX 200 Accumulation Index return of 1.38%, a difference of -2.18%
  • Year-to-date total return stands at 7.32%, outperforming the benchmark's 5.16% by 2.16%
  • Since inception on 21 January 2025, the fund has returned 6.96% per annum, compared to the benchmark's 6.94%
  • Total net assets were $36.6 million as at 31 October 2026
  • Materials was the largest active detractor for the month, costing around 1.30%

October 2026 Portfolio Performance and Sector Contributions

Financials was the largest active contributor for October, adding around 0.46% through overweight positions including QBE Insurance Group, Insurance Australia Group, Challenger, and ASX Limited, though underweight positions in major banks, led by Commonwealth Bank, weighed on returns. Materials was the largest active detractor, costing around 1.30%, with overweight positions in lithium, iron ore, gold and diversified miners weighing on returns. Industrials detracted around 0.53% through holdings in construction and engineering contractors including NRW Holdings, SRG Global and Southern Cross Electrical Engineering. Health Care cost around 0.39%, and Energy detracted around 0.14%.

Key Stock Contributors: QBE Insurance and Challenger

QBE Insurance Group was the top individual contributor, adding 27 basis points as the stock returned 12.1% during the month. In its first-half 2026 result, QBE reported adjusted net profit after tax of US$1,033 million and gross written premium of US$15.14 billion. Challenger Limited contributed 21 basis points with an 18.3% return. On 19 October, Challenger's largest shareholder TAL Dai-ichi Life Australia proposed to acquire the 79.5% of the company it does not own at A$11.80 per share, with the board stating the price was not at a recommendable level. Challenger also reported first quarter FY27 total sales of A$4.4 billion, up 52%, with annuity sales rising 72% to a record A$2.8 billion.

Key Stock Detractors: PLS Group and South32

PLS Group was the largest individual detractor, costing 57 basis points as the stock fell 28% over the month. The filing attributed the decline to commodity factors, with lithium carbonate prices falling 17% in the first half of September and sitting 34% below mid-May highs. South32 detracted 31 basis points, returning -14.2% as the stock fell alongside the broader materials sector amid weaker metals prices. South32's September quarter report maintained FY27 production guidance across its operations, with payable copper equivalent production at Sierra Gorda up 11% on higher planned copper grades. The fund's management fee is 0.39% per annum, with a performance fee of 20% of returns above the benchmark, subject to a high watermark.