TVIX and UVXY are geared to track short-term VIX futures contracts, rather than the spot price.
Volatility-linked ETFs have been hammered by a falling VIX and “contango” in the futures market which causes them to lose money when they roll the contracts. [‘Bull Market in Fear’ — Investors Buy VIX ETFs Despite Price Decline]
Earlier this month, UVXY initiated a 1-for-10 reverse split. [Get Ready for UVXY Reverse Split]
Despite their steep pullbacks, investors have added money to UVXY and TVIX in the third quarter – they have inflows of $184.7 million and $84.7 million, respectively, according to IndexUniverse.
VelocityShares Daily 2X VIX Short Term ETN
