• BREAKING NEWS: Stocks Settle Higher as Bank Sector Stabilizes
 
SIR Logo
  • About Us
    • Who We Are
    • About Bernie Schaeffer
    • Our Newsroom
    • FAQ
    • Contact Us
    • Corrections
    • Ethics & Fact Checks Policy
  • Market News
    • Sign Up for Free Market Newsletters
    • Opening View
    • Midday Market Check
    • Market Recap
    • View All Free Subscriptions
    • Schaeffer's Volatility Scorecard
    • Featured Publication
    • From the Top
    • Monday Morning Outlook
    • Indicator of the Week
    • Editor's Picks
    • View All
    • Trading Analysis
    • Best & Worst Stocks
    • Earnings Preview
    • Investor Sentiment
    • Quantitative Analysis
    • Technical Analysis
    • VIX & Volatility
    • View All
    • Stock Options
    • Intraday Options Activity
    • Most Active Options
    • Trade Postmortems
    • Options Recommendations
    • View All
    • Trading Education
    • Strategies & Concepts
    • Expectational Analysis
    • View All
    • Market News
    • Buzz Stocks
    • Stocks on the Move
    • Analyst Update
    • 5 Minute Market Rundown
    • Stock Market Podcasts
    • View All
    • Daily Market Newsletters
    • Opening View
    • Midday Market Check
    • Market Recap
    • View All
  • Premium
    • All Trading Services
    • Most Popular Services
    • Elite Trader
    • Quick-Hit Trader
    • Lightning Trader
    • Ultimate Trader
    • View All
    • Directional Trading
    • Options Under $5
    • Leverage
    • Weekly Options Trader
    • Event Trader
    • PowerTrend
    • Schaeffer's Players
    • Overnight Trader
    • View All
    • Advanced Trading Alerts
    • Wealthbuilder
    • Premium Trader
    • Hedge Hunter
    • Volatility Trader
    • Weekly Volatility Trader
    • View All
    • Weekend Alert
    • Weekend Player
    • Weekend Trader
    • Weekend Trader Alert
    • Expiration Week Countdown
    • Weekly Options Countdown
    • View All
    • Newsletter Trading Services
    • Master Portfolio
    • The Option Advisor
    • Schaeffer's Daily Bulletin
    • View All
    • Courses & Education
    • Getting Started with Options
    • View All
  • Options 101
  • Deals
    • Deal of the Week
    • Broker Center
    • Free Trial
  • Log-In
  • Search
>> PODCAST: tastylive's Jermal Chandler makes sense of the stock market<<

Volatility ETNs

 
While the CBOE Market Volatility Index (VIX) is closely tracked by many investors as a proxy of investors' expectations for the market, it's impossible to trade the VIX itself. The volatility index is just a statistic, and there are no shares to buy or sell. However, investors can circumvent this minor inconvenience by trading any one of a number of VIX-based exchange-traded notes, better known as volatility ETNs.

Here's a quick guide to some of the most widely known volatility ETNs.

iPath S&P 500 VIX Short-Term Futures ETN (VXX)

"The Index is designed to provide access to equity market volatility through CBOE Volatility Index® (the "VIX Index") futures. The Index offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects market participants’ views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index."

-- Courtesy of iPathETN.com

iPath S&P 500 VIX Mid-Term Futures ETN (VXZ)

"The Index is designed to provide access to equity market volatility through CBOE Volatility Index® (the "VIX Index") futures. The Index offers exposure to a daily rolling long position in the fourth, fifth, sixth and seventh month VIX futures contracts and reflects market participants’ views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index."

-- Courtesy of iPathETN.com

iPath S&P 500 Dynamic VIX ETN (XVZ)

"The Index is designed to dynamically allocate between the S&P 500® VIX Short-Term FuturesTM Index Excess Return and the S&P 500® VIX Mid-Term FuturesTM Index Excess Return by monitoring the relative implied volatility of the SP 500® Index at various points along the volatility forward curve.  The Index seeks to react positively to overall increases in market volatility and aims to lower the roll cost of investments linked to future implied volatility. Roll cost (yield) refers to the loss (gain) in value of volatility futures over time, as contracts with a shorter time to expiry tend to be relatively cheaper than contracts with a longer time to expiry."

-- Courtesy of iPathETN.com

VelocityShares Daily Long VIX Short-Term ETN (VIIX)

"The investment seeks to replicate, net of expenses, the return of the daily performance of the S&P 500 VIX Short-Term Futures index.The index was designed to provide investors with exposure to one or more maturities of futures contracts on the VIX, which reflects implied volatility of the S&P 500 Index at various points along the volatility forward curve."

-- Courtesy of Yahoo! Finance

VelocityShares Daily Inverse VIX Short-Term ETN (XIV)

"The investment seeks to replicate, net of expenses, the inverse of the daily performance of the S&P 500 VIX Short-Term Futures index. The index was designed to provide investors with exposure to one or more maturities of futures contracts on the VIX, which reflects implied volatility of the S&P 500 Index at various points along the volatility forward curve."

-- Courtesy of Yahoo! Finance

VelocityShares Daily 2X VIX Short-Term ETN (TVIX)

"The investment seeks to replicate, net of expenses, the returns of twice (2x) the daily performance of the S&P 500 VIX Short-Term Futures index. The index was designed to provide investors with exposure to one or more maturities of futures contracts on the VIX, which reflects implied volatility of the S&P 500 Index at various points along the volatility forward curve."

-- Courtesy of Yahoo! Finance



KEEP RE
ADING:
  • Implied Volatility
  • VIX and VXO
  • VIX Options
0

0

0

Partnercenter


 

About Schaeffer's
Who We Are
More about Bernie
Business Hours
Schaeffer's Sitemap
How Can We Help?
Access Your Account
Contact Us
Privacy Policy
Legal Notices
Premium Products
Trading Services
Educational Programs
Deal of the Week
Free Market Newsletters
Let's get social:
Twitter logo Facebook logo Instagram logo YouTube logo Linkedin logo
© 2021 Schaeffer's Investment Research, Inc.
5151 Pfeiffer Road, Suite 450, Cincinnati, OH 45242
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.