ProShares VIX Short-Term Futures ETF (VIXY)
BATS BATS Primary Summary
VIXY Chart
VIXY: The Fear Has Subsided (Rating Upgrade)
VIXY has dropped 32% since our 'Strong Sell' call; the trade thesis has played out as volatility normalized. With VIX back under 20 and the futures curve in contango, further downside in VIXY is limited, so we move to a 'Hold' rating. VIXY is strictly a short-term trading instrument, not suitable for buy-and-hold due to persistent value erosion over time.
VIXY: Today's Volatility Levels Are Not Sustainable
Investors often panic during volatile markets, leading to poor decisions; current market volatility is historic, comparable to Covid and the Great Financial Crisis. The S&P VIX Index index measures market volatility; current high levels are unsustainable long-term as continuous put buying is unrealistic. ProShares VIX Short-Term Futures ETF tracks short-term VIX futures; it gains during market upheaval but suffers massive losses over time due to the roll effect.
VIXY: Not A Portfolio Hedge, Just A Day Trading Tool
VIXY is not a suitable long-term portfolio hedging tool due to negative roll effect in VIX futures, down -85% in 3 years. VIXY is only profitable in rare events, up 9.9% for the year despite a 55% gain after the August 5, 2024 VIX spike. Alternatives for portfolio hedging include buying Treasuries and market neutral funds like BTAL, which have shown better performances.
ProShares VIX Short-Term Futures ETF Dividends
ProShares VIX Short-Term Futures ETF Earnings
ProShares VIX Short-Term Futures ETF (VIXY) FAQ
What is the stock price today?
On which exchange is it traded?
What is its stock symbol?
Does it pay dividends? What is the current yield?
What is its market cap?
Has ProShares VIX Short-Term Futures ETF ever had a stock split?
ProShares VIX Short-Term Futures ETF Profile
| BATS Exchange | US Country |
Overview
The described entity appears to be a financial instrument or index designed to give investors or traders exposure to market volatility, specifically the volatility of the S&P 500 index, through publicly traded futures markets. This instrument is structured to track the implied volatility of the S&P 500 for a period of 30 days ahead, suggesting it is a tool used for speculative purposes, hedging against market volatility, or as part of a broader investment strategy. It likely serves as a benchmark or reference for products aiming to profit from or hedge against the fluctuations in market prices.
Products and Services
- Volatility Futures
- Implied Volatility Index Instruments
These are futures contracts based on the level of volatility in the market rather than price movements of a specific asset. This product enables investors to speculate on future changes in volatility, or to hedge their portfolios against unexpected price swings, providing a strategic tool for managing risk.
This encompasses financial instruments or derivatives that are derived from the implied volatility of an index, in this case, the S&P 500. These could include options, swaps, or other derivatives structured around the 30-day future volatility of the S&P 500. Such instruments are fundamental in portfolio management for investors seeking exposure to market volatility without direct investment in the equity or futures market.
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