It’s tough right now to get returns above 1% a year right now without taking significant risks. For example ten year treasuries are running around 2% without much upside and a lot of downside. Stocks paying dividends of 2% or more are common, but they will track a general downturn. Typically quality high dividend stocks won’t decrease as much as other stocks in a downturn, but …
ProShares was the first Exchange Traded Fund (ETF) provider for volatility based funds. The previous volatility entries from Barclays (e.g., VXX & VXZ) were all Exchange Traded Notes (ETN). Click on the underlined ETF / ETN for discussions on how these types of securities work. Proshares has done well and currently has the most assets in the volatility ETP space. UVXY (1.5X long) and SVXY ( …
For a long time investors have been frustrated in their desire to directly invest in the VIX index. Now three ETNs, one by design, and the two other perhaps by accident are tracking (or out-performing) the VIX index on both a daily percentage move basis and for multi-day holding times. Historically the daily percentage moves of short term (1/2 month) volatility ETNs like VXX tend …
Note: XVZ was an exchange traded note, which an expiration date of Aug, 11, 2021. Barclays chose to not create a new instance of XVZ, it was never highly successful. Investco’s PHDG is still available, and uses the same index as XVZ did. It did well in the COVID crash, but generally significantly lags the S&P. ************************************************************************************ Barclays’ XVZ volatility ETN is intended to allow investors …
Almost everyone that invests would love to have a cost-effective way to insure against market declines. Securities that allow you to go long on volatility are attractive because they tend to go up when the market goes down, but none of them, when sized to really protect an investment are affordable in a “set and forget” sort of way. The first generation volatility ETNs …
