This post will discuss how SVIX works, including how it trades, how its value is established, what it tracks, tax treatment, termination risk, likely liquidity, and performance simulations. Volatility Shares’ -1x Short VIX Futures ETF (ticker: SVIX) started trading Wednesday, March 30th, 2022 After a gap of four years, volatility traders regained access to a -1X leveraged short-term volatility Exchange Traded Fund (ETF). SVIX’s Prospectus …
This post discusses how the LONGVOL and SHORTVOL indexes work, but starts with some historical background that illuminates why these new indexes were needed. Two new leveraged volatility Exchange Traded Funds from Volatility Shares, -1X SVIX and 2X UVIX started trading on the 30th of March, 2022. SVIX and UVIX utilize two new Cboe indexes, the Short VIX Futures Index (ticker: SHORTVOL) and the …
Years ago I had a meeting with my manager regarding three projects that I was responsible for. Each of the projects had considerable technical problems, tight deadlines, and were short on resources. In the course of the conversation, I asked my boss what his priorities were on the projects. He said all three projects had number one priority. Aargh… Absent useful guidance from others, how …
Effective May 2nd, VXXB and VXZB, Barclays’ short- and medium-term volatility funds will be renamed to VXX and VXZ. This is a market maneuver by Barclays to recapture the brand value of the original, very successful, VXX and moderately successful VXZ products introduced in 2009. The original products matured in January 2019 so Barclays had to create VXXB and VXZB as replacement products. However, there’s …
In the afternoon of February 5th, 2018, what looked like a bad day for a group of high flying volatility-based products turned into a devastating decline. Four factors combined to ruin their day: A Flawed Architecture Relying on the Past to Predict the Future Billions Under Management A Record-Breaking VIX® spike Twenty-five minutes before the close of the New York Stock exchange on February 5th, …
