Volatility ETF List
We’ve seen head-spinning, volatile stock market moves over the last decade. ‘Volatility’ describes how much the prices of stocks fluctuate. One way to quantify volatility is the CBOE’s Volatility Index, VIX. Many investors use volatility ETFs to hedge their investment portfolios. When investors become fearful, the VIX rises and vice versa. An investment in a security that tracks the VIX can increase in value when stock markets sell-off severely. In 2015, the VIX averaged 16.87 which is an 18% year over year increase. With a plethora of risks in the global financial system, it pays to keep an eye on volatility. Please review our volatility ETF list.
Short-Term Volatility ETF List
Issuer: Barclay’s iPath
Benchmark: S&P 500 VIX Short-Term Futures Index Total Return
Expense Ratio: 0.89%
Info: VXX is an exchange traded note and is riskier than ordinary unsecured debt securities and are subject to the credit risk of the issuer.
Issuer: ProShares
Benchmark:S&P 500 VIX Short-Term Futures Index
Info: Issues a K-1
Issuer: VelocityShares
Benchmark: S&P 500 VIX Short-Term Futures Index Excess Return
Symbol: VIIX
Expense Ratio: 0.89%
Info: VIIX is an exchange traded note and is subject to the credit risk of the issuer.
Issuer: REX Shares
Info: Tracks the new weekly VIX futures that began trading in 2015. Should compete with VXX.
Issuer: Accushares
Benchmark: CBOE Volatility Index
Expense Ratio: 0.95%
Info: Attempts to capture the up move in the spot VIX.
Leverage: 2x
Issuer: ProShares
Benchmark: S&P 500 VIX Short-Term Futures Index
Info: Seeks to return two times the daily performance of the S&P 500 VIX Short-Term Futures Index. Uses a rolling long position in the first and second months of the VIX futures curve.
Medium-Term Volatility ETF List
Issuer: ProShares
Benchmark: S&P 500 VIX Mid-Term Futures Index
Expense Ratio: 0.85%
Info: Issues a K-1
Issuer: Barclay’s iPath
Benchmark: S&P 500 VIX Mid-Term Futures Index
Expense Ratio: 0.89%
Info: VXZ is an ETN and is subject to the credit risk of the issuer.
Inverse Volatility ETF List
Leverage: -1x
Issuer: VelocityShares
Benchmark: S&P 500 Short-Term Futures Index Excess Return
Expense Ratio: 1.35%
Info: Designed to move opposite of the VIX on a daily basis. In other words, if you believe volatility will decrease, you would purchase an inverse volatility ETN.
Issuer: REX Shares
Info: This product is designed to go short volatility, similar to XIV.
Issuer: VelocityShares
Benchmark: S&P 500 VIX Mid-Term Futures Index Excess Return
Info: Attempts to go short the VIX, medium-term. This is an exchange traded note and is subject to the credit of the issuer.
Issuer: AccuShares
Benchmark: CBOE Volatility Index
Expense Ratio: 0.95%
Info: Attempts to go short the spot VIX.
Long/Short Volatility ETF List
Issuer: UBS
Benchmark: S&P 500 VIX Futures Term-Structure ER Index
Info: This is an alpha strategy that takes a 100% long position in the S&P 500 VIX Mid-Term Futures Index Excess Return 500 plus a short or inverse position in the S&P 500 VIX Short-Term Futures Index Excess Return with daily rebalancing. It actively manages the VIX term structure for returns. It is an ETN so is subject to credit rating of the issuer.
Benchmark: S&P 500 VIX Mid-Term Futures Index
Expense Ratio: 0.85%
Issuer: Citigroup
Benchmark: Citi Volatility Index Total Return
Expense Ratio: 0.89%
Info: CVOL has exposure to the 3rd and 4th months out on the VIX futures curve to possibly reduce the negative affects of contango.
