VelocityShares 1x Daily Inverse VSTOXX Futures ETN (EXIV)

Overview

The company behind this investment product seeks to offer investors a financial instrument that is linked to the VSTOXX Short-Term Futures Inverse Investable Index, hereby referred to as the Inverse Investable Index. This index aims to replicate the returns of a short position in a portfolio of VSTOXX futures. The VSTOXX futures are financial contracts that speculate on the future volatility of the EURO STOXX 50 Index, which is a leading Blue-chip index for the Eurozone. By taking a short position, the investment product is designed to profit from decreases in the implied volatility of the EURO STOXX 50 Index. It’s important to note that this product includes mechanisms to manage the bid-ask spread during the roll procedure of futures contracts and incorporates daily reset costs, factors that will inherently reduce the value of the investment over time. This product represents a complex financial strategy aimed at investors who wish to hedge against or speculate on shifts in market volatility.

Products and Services

• VSTOXX Short-Term Futures Inverse Investable Index Linkage

This product provides investors with exposure to the Inverse Investable Index, which is designed to replicate the performance of short positions in VSTOXX futures. These futures contracts aim to offer insight into the forward one-month implied volatility of the EURO STOXX 50 Index, a prime indicator of market sentiment towards European blue-chip stocks. This particular investment strategy allows investors to potentially profit from declines in market volatility, with the product automatically adjusting to stay in line with the Inverse Investable Index's strategy of constant-maturity, one-month forward agreements.