UVXY is a 200% daily leveraged ETF that tracks an index of short-term futures contracts. The fund launched in early October, coinciding with a recent high in the VIX and a low in U.S. stocks.
Therefore, the leveraged ETF has lost most of its value as the VIX has steadily declined in recent months. The fund is trading below $6 a share, down from the 42-week high of $40.80 reached in October. The reverse split is designed to increase the share price, however.
Trading volume in UVXY has jumped after a similar exchange traded note, VelocityShares Daily 2x VIX Short-Term ETN (NYSEArca: TVIX), recently suspended new share issuance. Credit Suisse, the ETN issuer, says the suspension is temporary. [Volatility ETF Trading Volume Spikes]
ProShares Ultra VIX Short-Term Futures ETF