A lot of research goes on these days assessing how anxious Americans are based on online sentiment, but markets need only look to one of the handy indicators that grade volatility to see that the current moment is a stressful one. One such measure is, of course, the Chicago Board Options Exchange’s CBOE Volatility Index, or the VIX, which was also the focus of several of the 10 top-performing ETFs of the last week, as volatility ETFs picked up some notable performance momentum.
|Ticker||Name||1 Week Return|
|(VXX)||iPath Series B S&P 500 VIX Short-Term Futures ETN||21.40%|
|(VIXY)||ProShares VIX Short-Term Futures ETF||21.23%|
|(SPKX)||ConvexityShares 1x SPIKES Futures ETF||20.96%|
|(CYA)||Simplify Tail Risk Strategy ETF||14.51%|
|(NOPE)||Noble Absolute Return ETF||10.54%|
|(IBIT)||Defiance Daily Short Digitizing the Economy ETF||9.96%|
|(VXZ)||iPath Series B S&P 500® VIX Mid-Term Futures ETN||9.36%|
|(VIXM)||ProShares VIX Mid-Term Futures ETF||9.19%|
|(GRN)||iPath Series B Carbon ETN||8.78%|
|(BDRY)||Breakwave Dry Bulk Shipping ETF||8.52%|
The iPath Series S&P 500 VIX Short-Term Futures ETN (VXX) led the way in terms of one-week performance, returning 21.4%. VXX charges 89 basis points to track the S&P 500 VIX Short-Term Futures Index Total Return, offering investors negative correlation to U.S. and international stocks, though it should be noted that VXX doesn’t include a spot investment in the VIX but instead will vary from a hypothetical direct investment in the VIX, which sat at 25.85 midafternoon Monday.
Right behind VXX is the ProShares VIX Short-Term Futures ETF (VIXY), which returned 21.2% for the week for a 105 basis point fee on top of $13.2 million in one-month net inflows. VIXY invests similarly to VXX, also including a caveat regarding how it attempts to reflect the VIX without a direct spot investment.
Rounding out the week’s top three, the ConvexityShares 1X SPIKES Futures ETF (SPKX) returned 21% tracking the T3 SPIKE Front 2 Futures Index, rolling the two nearest month SPIKES futures contracts. SPIKES futures are also a measure of volatility, attempting to reflect expected 30-day volatility through the SPIKES Volatility Index (SPIKE).
Two other ETFs in last week’s top 10 are VXX and VIXY’s midterm siblings, the iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and the ProShares VIX Mid-Term Futures ETF (VIXM), which returned 9.4% and 9.2%, respectively.
Other risk-oriented strategies included the actively managed Simply Tail Risk Strategy ETF (CYA), returning 14.5% for an 84 basis point fee, and the actively managed Noble Absolute Return ETF (NOPE), returning 10.5% for a 182 basis point fee, having just launched this past September.
Outside of the risk theme was the iPath Series B Carbon ETN (GRN), which tracks an index of EU and Kyoto Protocol carbon credits for a 75 basis point fee, returning 8.8% for the week, while the Defiance Daily Short Digitizing the Economy ETF (IBIT)’s 10% return suggests that concern about the Fed and market volatility may have seen digital tech offerings pull back.
In last place, the Breakwave Dry Bulk Shipping ETF (BDRY) returned 8.5% for the week, making a return appearance to a top 10 dominated by volatility ETFs.
For more news, information, and analysis, visit the Alternatives Channel.