Update: I do not believe XXV is a good way to short VXX, or volatility in general. It has very little upside remaining (maximum value will be $40/share), see this post for more details. ********************************************************** With the recent action in the VIX and VXX I thought it would be good time to go back and check the performance of Barclays’ new ETN product XXV to see …
Update VXUP and VXDN were terminated on September 8th, 2016. They never accumulated enough assets to be financially viable. The naysayers on these funds were right—there was no way these funds could perform the way their prospectus or marketing materials suggested. They didn’t understand (and didn’t bother to learn once it was pointed out) how their funds would be arbitraged against VIX futures in such …
Update: I do not believe XXV is a good way to short VXX, or volatility in general. It has very little upside remaining (maximum value will be $40/share), see this post for more details. ********************************************************** When the XXV ETN first came out in early July there was some discussion on whether Barclays’ intent was to match the inverse of the percentage moves of the VXX, or to …
Update: Barclays terminated XXV in April 2018. There is no replacement product. ********************************************************** XXV Prospectus: XXV: Barclays Inverse VolatilityETNs Usually getting the prospectus for a new ETF or ETN takes a Google search and a couple minutes of browsing. The prospectus for Barclays’ new XXV inverse volatility ETN proved to be a much more elusive search—it didn’t show up in the top 20 hits. …
Made my first trade in XXV yesterday, buying at 23.07. During corrections, like the one we are in right now, the VIX index tends to spike up pretty early, a day or two in. Later, even when the market drops are larger, the VIX does not seem to match the earlier highs–unless of course the market moves into a more panicky phase.
