Frequently I see people complaining that their Exchange Traded Fund (ETF) or Exchange Traded Note (ETN) is broken. Occasionally they’re right, but most of the time they’re not. Before complaining, here are some things to look at: Are you looking at the right index? All Exchange Traded Products (ETPs) track an index, which is identified in their prospectus, and in the fund’s fact sheet. Don’t …
On Friday, December 14th, Credit Suisse announced a 10:1 reverse split of TVIX, effective the 21st. I had pretty much given up on TVIX because its price had slid way past the logical reverse split point and has traded below $1 for the last 16 trading days. However instead of fading to black TVIX is now back into a reasonable trading range. In February 2012 Credit Suisse …
From August 2nd to October 3rd, 2011 Barclays’ S&P 500 VIX Short Term Futures ETN (VXX) had a great 137% runup. In that same period ProShares’ UVXY, 2X leveraged Exchange Traded Fund (ETF) went up an astonishing 348%, 73 percent more than its 2X leverage factor would project. How is that possible? Don’t inverse and leveraged funds always underperform the index they’re tracking? Normal market …
Update TVIX is alive, and well. For information about TVIX’s reverse stock splits see this post ————————————-. Things have not been well with TVIX since Feb 21st, 2012 when Credit Suisse stopped the share creation process. In late March 2012, a modified creation process was put in place, but that has only been partially successful—the TVIX price has often been floating 5% to 10% above …
In March 2012 Credit Suisse announced that they would resume limited share creation, but TVIX is still not accurately tracking its indicative value (IV). An April 11, 2012 intra-day quote gave TVIX’s bid at 9.39 while its IV on Yahoo Finance (symbol ^TVIX-IV) was 8.21—a 6.4% difference. By comparison ProShares’ UVXY, which has the same performance goals as TVIX was at 20.30, with an IV of …
