Trading TVIX. What Investors Need to Know

Paul Tudor Jones is legendary among traders for a lot of reasons, but the foundation of his myth was set in 1987, when he raked in a massive profit by effectively predicting Black Monday, the largest ever one-day drop in the stock market. 

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Targeting the market of sophisticated, institutional investors who are looking for advanced, turnkey investment solutions, the VelocityShares Daily 2x VIX Short-Term ETN (TVIX) is designed to seek returns that are double those of the S&P 500 VIX Short-Term Futures Index ER every day. As a play on U.S. stock volatility, TVIX is tied to the S&P 500 VIX Short-Term Futures Index. 

[Trading TVIX: What Investors Need to Know]

TVIX provides 2x leveraged exposure to an index comprising first- and second-month VIX future positions resulting in a weighted average maturity of 1 month. In order to achieve its goals, its holdings can vary broadly from day to day based on market conditions. On a recent day, for instance, 100% of TVIX’s assets were in CBOE Short-Term VIX Futures with a December 2019 expiration date.

Launched in 2010, TVIX has an expense ratio of 1.65% and about $918 million in assets under management.


The most direct way to gain exposure to the TVIX approach to the market is to buy its listed shares. But there are a number of good reasons for investors to reconsider that. With a fairly high expense ratio, TVIX is automating a fairly simple trade for most investors to mimic. Rather than buying TVIX shares themselves, investors interested in gaining exposure to both short- and mid-term protection might consider buying funds that provide exposure to similar VIX future positions.

Investing in TVIX

A search on Magnifi suggests that investors can gain access to the VIX futures via a number of different funds and other ETFs, including those shown below. 

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