Volatility Shares announced the launch of the 2x Long VIX Futures ETF (UVIX) and the -1x Short VIX Futures ETF (SVIX). Shares of UVIX and SVIX are available to trade on the CBOE BZX, effective Wednesday.
The new ETFs will track the daily performance of two volatility futures indexes. UVIX tracks, before fees and expenses, twice the Long VIX Futures Index (LONGVOL), which is designed to deliver the daily performance of a portfolio of short-term VIX futures contracts. SVIX, meanwhile, tracks, before fees and expenses, the Short VIX Futures Index (SHORTVOL), which is designed to deliver the full daily inverse performance of a portfolio of short-term VIX futures contracts.
Volatility Shares co-founder Stuart Barton said in a news release that the company is “excited to bring back the VIX futures exposure that investors have been missing since 2018.” In February 2018, a surge in market volatility later called “Volmageddon” caused the VelocityShare Daily Inverse VIX Short Term ETN to go broke and close.
Volatility Shares was formed by a group of volatility and ETF specialists with the purpose of returning the -1x and 2x VIX ETFs to the U.S. equity market.
Milliman Financial Risk Management will serve as commodity sub-advisor, and U.S. Bank will serve as the custodian.
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