XIV looks like a winner—if you have the stomach for it…
VelocityShares’ daily inverse volatility fund XIV has only been around since November 30th, 2010, but it has already delivered in a head turning 44% gain. This performance is not totally surprising given the collapse of VXX in the last two months, but how would it have behaved in less favorable times—let’s say the Flash Crash? I did a back synthesis of XIV starting January 4th, …