Finally, it is important to mention that “The percentage exposure to the equity component is expected to range between 10 and 100% and will not exceed 100%. Exposure to the Treasury B ills component is expected to range between 0% and 90%.” How is the fund positioned currently?
VSPY is 100% allocated to equities at the moment with no T Bills position, even given the recent retreat off of all time highs in the SPX.
This fund now has $23.4 million in AUM, so it remains relatively small currently, but more importantly, trading volume has been exponentially increasing since the middle of July and there is no reason to believe that activity will curtail in the near future, especially in these uncertain times.
We will look at this fund along with other broad indicators that we watch to gauge collective fear and potential wholesale allocations in the marketplace from Equities to T Bills (or vice versa), if not “response to volatility” as Direxion would likely put it based on what this product has set out to do.
Direxion S&P 500 RC Volatility Response Shares
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at [email protected].
Street One Financial is an educational/research firm utilizing the Broker Dealer services of Precision Securities, a FINRA registered Broker/Dealer.