The fund’s holdings include Vanguard S&P 500 ETF (NSYEARca: VOO) 33.5%, iShares CORE S&P 500 ETF (NYSEArca: IVV) 33.5%, SPDR Trust Series 1 (NYSEArca: SPY) 33.4% and S&P 500 VIX Futures Tail Risk Index TRS -19.3%.
According to VelocityShares, TRSK could be costly during normal market conditions due to its slightly long volatility bias, whereas SPXH retains some upside potential during normal market conditions due to its neutral volatility bias.
“Volatility ETPs have proliferated in the last four years, but until now, investors have not had a sophisticated product which would enable them to implement a strategic volatility allocation in one package” Nick Cherney, Chief Investment Officer and co-founder of VelocityShares, said in a press release. “These VelocityShares ETFs are intended to provide a truly institutional quality solution to a vexing problem: how to use volatility to improve portfolio quality.”
For more information on new product launches, visit our new ETFs category.
Max Chen contributed to this article.