In just the past week, VXX has bled $414 million while the ProShares Short VIX Short-Term Futures ETF (NYSEArca: SVXY) has lost over $34 million.
However, there have been no departures from or inflows to the double-leveragedVelocityShares Daily 2X VIX Short-Term ETN (NYSEArca: TVIX) while the ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY) added nearly $11 million over the past week.
The VIX typically moves higher when stocks plunge. Traders would turn to S&P 500 options to protect their portfolios against any sudden dips. Investors should also be aware that VIX-related ETFs are designed to track CBOE Volatility Index futures contracts, not the VIX spot price. Consequently, traders can lose money on this trade when longer-dated contracts are more expensive than the front-month contract, or when markets are said to be in “contango.” [VIX ETNs Love Volatile Markets]
VelocityShares Daily Inverse VIX Short-Term ETN
