What Is The Difference Between VXX And VIX?

What is the difference between VXX and VIX? The VXX is an Exchange Traded Note (ETN) that tracks the VIX short-term futures. One of the most frequent opportunities the VXX has to outperform the VIX is when we are in backwardation, which is when the front month future is worth more than the back month future.

What is the difference between UVXY and VIX?

UVXY is a leveraged ETF which is targeting a return of 1.5x this index. In other words, to understand the performance of UVXY versus the VIX, you would need to multiply the above data points by 1.5. To drive the point home here - on average, UVXY's underlying index lags the VIX by about 30% every 6 months.

Does UVXY track VIX?

UVXY is an ETF which is tracking the S&P 500 Short-Term VIX Futures Index on a 1.5x leveraged basis. This index is provided by S&P Global and it relatively straightforward: it holds a basket of first and second month VIX futures such that the average holding is 30-days into the future.

Is UVXY a good investment?

It doesn't work as a long-term investment; the combination of negative roll, leverage, and markets that go up over time are a toxic trio. And even on a shorter-term basis, it's hard to see what UVXY accomplishes that can't be better served elsewhere.

About UVXY.

Symbol Last Price % Chg
UVXY 20.73 -11.81%

Which ETF most closely tracks VIX?

One of the most popular VIX ETFs is the iPath S&P 500 VIX Short-Term Futures ETN (VXX). This product maintains a long position in first- and second-month VIX futures contracts, which roll daily.


Related investments for What Is The Difference Between VXX And VIX?


What kind of ETF is Uvxy?

ProShares Ultra VIX Short-Term Futures ETF provides leveraged exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration.


What is opposite of VXX?

The XIV, which is the inverse of the VXX. When volatility is dropping, the XIV is going up. Here you are essentially betting that the VIX futures will remain in contango, and you're getting paid for it.


What is the Uvxy fund?

UVXY Fund Description

UVXY provides 1.5x leveraged exposure to an index comprising first- and second-month VIX futures positions with a weighted average maturity of one month.


How do I bet on increased volatility?

In a straddle strategy, a trader purchases a call option and a put option on the same underlying with the same strike price and with the same maturity. The strategy enables the trader to profit from the underlying price change direction, thus the trader expects volatility to increase.


How do I invest in VIXY?

The primary way to trade on VIX is to buy exchange traded funds (ETFs) and exchange traded notes (ETNs) tied to VIX itself.


Is UVXY a ETN?

UVXY is one of the two liquid double-long leveraged ETFs/ETNs on the VIX (the other is TVIX).


Can inverse ETFs be leveraged?

Leveraged inverse ETFs use the same concept as leveraged products and aim to deliver a magnified return when the market is falling. For example, if the S&P has declined by 2%, a 2X-leveraged inverse ETF will deliver a 4% return to the investor excluding fees and commissions.


Can you short sell VXX?

Easy way: If you want to short VXX the simplest way is to buy SVXY. This Exchange Traded Funds tracks -0.5X the daily percentage moves of VXX so it isn't a true short, but it has the same goal—going up when VXX goes down.


Why do I have short UVXY?

About UVXY. Despite my bullish view on the VIX, I am actually short UVXY. The reason for this is quite simple: there's a strong difference in performance between UVXY's underlying methodology and the VIX itself. This chart shows the correlation between changes in the VIX and changes in UVXY's unlevered index.


Was this post helpful?

Leave a Reply

Your email address will not be published.