The popularly traded VelocityShares Daily 2x VIX Short-Term ETN (NYSEArca: TVIX) was up 8.1% during trading. The exchange traded note was trading at a 90% premium after issuer Credit Suisse halted creation of new shares. TVIX currently trades at a 5.9% premium to its net asset value. [Volatility ETFs: Checking in on the TVIX Premium]
Volatility-linked exchange traded products are complex investment vehicles designed to track VIX futures, not the spot price. As such, these instruments are intended to be used as a daily hedge, and their performances will begin to diverge from the underlying index if held for longer than one day.
ProShares VIX Short-Term Futures ETF
For more information on the market volatility, visit our volatility category.
Max Chen contributed to this article.