The VIXH ETF will hold its 1% allocation to VIX options, so any potential performance drag as associated with expiration on the options will be anticipated. [Fear Factor: An ETF to Hedge ‘Black Swan’ Events]

For either ETFs, investors should know that both funds would underperform in bull market rallies, but the extent to which PHDG will underperform is less predictable because of its active allocation strategy.

For more information on the VIX, visit our VIX category.

Max Chen contributed to this article.