Volatility funds can see performance negatively impacted due to “contango” in VIX futures, when longer dated contracts are more expensive. They lose money on the “roll trade” when they recycle their exposure to VIX futures.
VXX was down 53.4% year to date as of April 30, according to Morningstar.
iPath S&P 500 VIX Short-Term Futures ETN
