A volatility-linked ETF that has been pushed down by a falling CBOE Volatility Index and a steep VIX futures curve plans to reverse split shares 1-for-10 in early September.

The overall value of investments in ProShares Ultra VIX Short-Term Futures ETF (NYSEArca: UVXY) will not change as a result of the reverse split.

Investors will own fewer shares, but each share will have a higher price.

VelocityShares Daily 2X VIX Short Term ETN (NYSEArca: TVIX) is an exchange traded note that follows a strategy similar to UVXY.

ProShares made the announcement following speculation some volatility exchange traded products would reverse split after falling sharply in 2012. [Volatility ETFs: It’s Quiet Out There…Too Quiet]

For example, iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) is down over 90% since its launch. UVXY was changing hands at $5.34 a share Tuesday after trading above $100 last year.

Volatility exchange traded products are designed to track VIX futures contracts, not the spot price.

The VIX has dropped to multiyear lows this summer. This suggests investors are growing complacent as trading volume also drops.

Aside from a falling VIX, volatility products have also been hurt by “contango” in the VIX futures market.

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