ProShares has filed with the Securities and Exchange Commission (SEC) to offer two exchange traded funds (ETFs) based on VIX volatility futures.
The proposed ETFs are:
- ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY)
- ProShares VIX Mid-Term Futures ETF (NYSEArca: VIXM)
VIX products have been popular lately. Barclays was first on the scene with iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX) and iPath S&P 500 VIX Mid-Term Futures ETN (NYSEArca: VXZ), launched in January of this year. The VIX suite from Barclays has four exchange traded notes (ETNs).
VIX products allow investors to profit from rising volatility in the markets, explains Olivier Ludwig for Index Universe. Market volatility rose on Friday, pushing the VIX up 11.4% in one session. In the last week, it rose 7.2%. The VIX is the market’s “fear index” and is considered a gauge of future volatility. [VIX ETNs: Calm Before The Storm?]
ProShares’ ETFs will be priced at 0.85%; the Barclays ETNs have a 0.95% expense ratio. [Why Doesn’t My VIX ETN Reflect the Index?]
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.