The iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) conducted a 1-for-4 reverse split before Friday’s opening bell. The move resulted in a higher share price for the exchange traded note but with fewer shares outstanding.
VXX was trading hands at $33.79 a share in midday trading Friday, after closing the previous session at $8.65. [VIX ETF to Reverse Split]
On a split-adjusted basis, the ETN was down about 2%. The product is designed to reflect the performance of short-term futures contracts based on the CBOE Volatility Index, or VIX.
VXX is down about 75% year to date on a falling VIX and “contango” in the futures market, which causes the product to lose money on the so-called roll trade.
Yet the ETN has gathered net inflows of $2.8 billion year to date. It ranks eighth on the list of best-selling exchange traded products in 2012, according to Index Universe. [‘Bull Market in Fear’ — Investors Buy VIX ETFs Despite Price Decline]