UVXY

UVXY

As a leveraged fund, the ProShares Ultra VIX Short-Term Futures ETF (UVXY) seeks daily investment results that are one and one-half times (1.5x) the daily performance of the S&P 500 VIX Short-Term Futures Index, which tracks a portfolio of monthly VIX futures contracts. It’s a play on U.S. stock market volatility.

As a leverage ETF, UVXY is designed to help investors profit from increases in the expected volatility of the S&P 500 while also reducing their portfolio risk, since changes in the VIX Short-Term Futures Index have historically been negatively correlated to S&P 500 returns.

UVXY’s expense ratio is 0.95% and it has about $584 million in assets under management. 

Rationale 

The most direct way to gain exposure to the UVXY approach to the short-term VIX is to buy its listed shares. But there are a number of good reasons for investors to reconsider that. UVXY gas underperformed broadly since inception in 2011, amid a fairly steady growth period for the overall U.S. equities market. This mirrors the trend in the VIX overall. Rather than buying UVXY shares themselves, investors interested in gaining exposure to both short- and mid-term protection that’s tied to the VIX might consider buying funds that provide exposure to similar VIX positions. 

Investing in UVXY

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

Schedule a demo and unlock
a 14-day free trial of Magnifi Pro+

SCHEDULE A DEMO

Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Open a Magnifi investment account today. 

This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]      

 

 

 


TVIX

TVIX

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.

Rationale

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. 

Schedule a demo and unlock
a 14-day free trial of Magnifi Pro+

SCHEDULE A DEMO

Magnifi is changing the way we shop for investments, with the world’s first semantic search engine for finance that helps users discover, compare and buy investment products such as ETFs, mutual funds and stocks. Open a Magnifi investment account today.

This blog is sponsored by Magnifi. The information and data are as of the publish date unless otherwise noted and subject to change. This material is provided for informational purposes only and should not be construed as individualized investment advice or an offer or solicitation to buy or sell securities tailored to your needs. This information covers investment and market activity, industry or sector trends, or other broad-based economic or market conditions and should not be construed as investment research or advice. Investors are urged to consult with their financial advisors before buying or selling any securities. Although certain information has been obtained from sources believed to be reliable, we do not guarantee its accuracy, completeness or fairness. Past performance is no guarantee of future results. This content may not be reproduced or distributed to any person in whole or in part without the prior written consent of Magnifi. [As a technology company, Magnifi provides access to tools and will be compensated for providing such access. Magnifi does not provide broker-dealer, custodian, investment advice or related investment services.]