Jason Goepfert, president of Sundial Capital Research Inc., argues that a rise in trader interest for these types of funds typically preceded a swing in equity volatility.
“When shares outstanding rise quickly, it has coincided with declining volatility and a VIX that was about to rise in the months ahead,” Goepfert said. “Based on the recent jump in the shares outstanding, this should be a negative for stocks.”
iPath S&P 500 VIX Short Term Futures ETN
For more information on the CBOE Volatility Index, visit our VIX category.