The ETN is geared to provide the performance of VIX mid-term futures contracts. The VIX, Wall Street’s “fear index,” rises when markets plunge in periods of uncertainty. [Are VIX ETFs Understating Market Risks?]
The VIX closed below 16 on Friday as U.S. stocks rose every day last week on hopes the Greek austerity vote will moderate European debt fears. Its 52-week low of 14.27 was set in April.
“Poor performance may cause the fund provider to automatically redeem shareholder positions,” investment researcher Morningstar said in a profile of the ETN. “While shareholders will have their funds returned, they will lose the position.”
iPath Long Enhanced S&P 500 VIX Mid-Term Futures ETN
