VXX is down more than 90% since inception “yet Detrick still sees massive inflows as everyone on earth insists on calling a top in the market and a bottom on volatility,” according to the report.
Volatility-linked products are designed to track VIX futures rather than the spot price. Therefore, their losses are compounded when VIX futures are in a state of “contango” when longer-dated contracts are more expensive than the front-month contract. [VIX ETFs: An Imperfect Hedge]
VXX fell to a new split-adjusted all-time low this week.
iPath S&P 500 VIX Short-Term Futures ETN
