Next TVIX Reverse Split, Number 7—December 2nd, 2019

Credit Suisse has announced that the seventh reverse split of TVIX will be December 2nd, 2019 with a 10:1 reverse split. Reverse splits reduce transaction costs by making the bid /ask spread as a percentage of the price smaller (when TVIX is trading around $5 the one cent minimum spread TVIX’s bid / ask spread is effectively a 0.25% transaction charge).  It will also likely …

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When You Think Your Exchange Traded Fund is Broken…

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 …

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TVIX Gets a New Lease on Life

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 …

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Sometimes Inverse / Leveraged Volatility Funds Outperform Their Leverage Factors

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 VelocityShares’ TVIX  ETN, 2X leveraged on the same index 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 …

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TVIX’s Fate—Fade to Black?

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 …

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