The iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX) is down more than 20% in 2011 as betting on higher volatility has been a losing strategy.

The CBOE Volatility Index (VIX) fell more than 7% on Monday, moving lower as investors breathed a sigh of relief a government shutdown was avoided. Exchange traded funds (ETFs) and notes following VIX futures rose Friday.

The $1.5 billion iPath S&P 500 VIX Short-Term Futures ETN is the largest by assets.

ProShares VIX Short-Term Futures (NYSEArca: VIXY)

The opinions and forecasts expressed herein are solely those of John Spence, 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.