News about

What is an ETF? — Part 28: CBOE Volatility Index (VIX)

Tue, 30 Oct 2012 08:00:01 -0400

Exchange traded funds continue to increase in number and popularity, growing to one of the most commonly traded securities on the stock exchange as both institutional and the average retail investor gain greater access to broad or specialized market exposure. Yet many individuals are unfamiliar...

ETF Insider: Sour Data Spooks Bulls

Sat, 05 May 2012 09:00:24 -0400

Equity markets turned south this past week as sour economic data deteriorated investors’ confidence, dragging down major indexes into red territory. Volatility was quick to return as mixed economic reports paved the way for profit taking on Wall Street. On the bright side, manufacturing and weekly jobless claims both came in better-than-expected; nonetheless, investors focused their attention on Friday’s employment report which showed that fewer-than-expected jobs were added in April despite a drop in the unemployment rate to 8.1% [see also 5 Simple ETF Trading Tips]. Actionable ETF Trade Ideas Last Week’s Actionable ETF Ideas Ticker Position Performance EDV Long +0.6% SCIN Long -5.7% XVIX Long -1.5% Our picks from Monday’s Insider posted a disappointing performance during a week largely dominated by bears on Wall Street. Below, we highlight how our trade ideas fared during the week [sign up for a free trial of ETFdb Pro to get actionable ETF ideas every [...]

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ETF Insider: Opportunities In A Pullback

Mon, 30 Apr 2012 10:04:45 -0400

U.S. stocks staged an impressive recovery last week as major indexes held above key technical resistance levels, 1,360 for the S&P 500 Index, bolstered by upbeat earnings results. Investors also reacted positively following the latest FOMC announcement which reaffirmed the Fed’s commitment to keeping interest rates low until late 2014. Confidence in the domestic recovery is growing judging from the positive reaction on Wall Street after last Friday’s GDP report [see also Free Report: How To Pick The Right ETF Every Time]. Weekly Outlook Below, we highlight ETFs that may see an increase in trading activity as relevant market data is released and evaluated by investors: SPDR S&P Retail ETF (XRT): This ETF could see an increase in trading volumes on Monday as the retail sector reacts to the latest consumer spending data; analysts are expecting for this figure to come in at 0.3% versus the previous reading of 0.8% IQ Canada Small Cap ETF (CNDA): The [...]

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VIX ETP Returns for Q1 2012

Tue, 03 Apr 2012 13:20:00 -0400

An Updated Field Guide to VIX ETPs

Tue, 21 Feb 2012 11:59:00 -0500

Interview at OptionPundit

Fri, 18 Nov 2011 14:27:00 -0500

Six Noteworthy ETF Innovations

Wed, 16 Nov 2011 09:30:21 -0500

Since the ETF industry was conceived close to two decades ago, innovation has been a hallmark of this rapidly-expanding corner of the investing landscape. Thanks to a unique structure that allows for liquidity, transparency, and tax efficiency, ETFs have quickly and consistently taken market share from other types of securities, bringing newfound flexibility to all types of portfolios. If anything, the pace of innovation has accelerated dramatically in recent years; an aggressive product pipeline has produced hundreds of new products in the last several years, many of which are first-to-market ideas that tap in to new asset classes and investment strategies. Some of these innovations have benefited investors broadly, while others have been noteworthy primarily to more targeted groups [see 25 Things Every Financial Advisor Should Know About ETFs]. In case you haven’t been keeping up with all the latest developments in the ETF industry, here’s a quick recap of [...]

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Inverse VIX ETNs: Reviewing All The Options

Thu, 23 Jun 2011 07:00:14 -0400

As the lineup of ETFs approaches the 1,300 mark, a growing pool of issuers continue to deliver innovative new products that tap into strategies and asset classes that have never before been accessible through the exchange-traded structure. One relatively new area that has attracted billions of dollars in new assets in recent years is the volatility space; there are now 15 ETPs in the Volatility ETFdb Category with aggregate assets of nearly $3 billion. The development of volatility ETPs has been an interesting illustration of the increasingly wide reach of the ETF industry. Unlike stocks and bonds, a direct investment in volatility isn’t possible; the relevant values are derived from prices of other securities, and it isn’t possible to simply go out and buy volatility. Because volatility tends to move in the opposite direction of equity markets, the idea of transforming this metric into an investable asset had obvious appeal [...]

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UBS Unveils Natural Gas, Oil “Contango ETNs”

Fri, 17 Jun 2011 07:00:18 -0400

The latest innovation in the commodity ETP space came from UBS on Thursday, as the company rolled out a pair of products designed to exploit contango in two of the most heavily-traded energy futures markets. The new ETRACS Natural Gas Futures Contango ETN (GASZ) and ETRACS Oil Futures Contango ETN (OILZ) will be linked to indexes maintained by ISE that effectively maintain short exposure to front month contracts and long exposure to mid-term futures contracts. GASZ: Unique Natural Gas Exposure This ETN seeks to replicate the ISE Natural Gas Futures Spread Index, which takes a 100% long position in the components of the ISE Short Front Month Natural Gas Futures Index (which provides inverse exposure to an index comprised of front month natural gas futures). That position is combined with an aggregate 100% long position in the the ISE Twelfth Month Natural Gas Futures Index, ISE Thirteenth Month Natural Gas [...]

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VIX ETFs Thrive as Market Stumbles

Thu, 05 May 2011 15:45:54 -0400

The stock market’s recent tumble has proved to be quite beneficial for exchange traded funds (ETFs) based on CBOE Volatility Index futures contracts. The CBOE Volatility Index, or VIX, has jumped about 20% this week from its 52-week low just last week, according to DailyMarkets. Despite the...

VIX ETFs End Week With Move Higher

Sat, 09 Apr 2011 09:16:46 -0400

Exchange traded funds (ETFs) tracking futures on Wall Street’s “fear gauge” rose late Friday, suggesting investors were nervous going into the weekend. After the mid-March CBOE Volatility Index spike, the volatility-tracking index is back down near where it was in February. The...

Examining VIX ETF Performance During A Sell-Off

Mon, 21 Mar 2011 07:00:17 -0400

Examining VIX ETF Performance During A Sell-Off

Mon, 21 Mar 2011 07:00:17 -0400

Innovation not only in the ETF space but throughout the financial industry has opened up new opportunities in recent years, allowing investors to access asset classes and strategies that had previously been out of reach. One example of such a phenomenon is the volatility space, which has been transformed from a hypothetical but widely-followed measure of investor sentiment to an investable asset. The VIX, which measures the implied volatility of U.S. equity markets over the next 30 days and is computed using inputs from S&P 500 options, has been around for more than two decades, but by the vary nature of its calculation is not an investable asset [see How ETFs Have Democratized Investing]. Thanks to the introduction of options and futures linked to the VIX over the last several years, this measure of volatility has been transformed into (essentially) an investable asset class. And the more recent development of [...]

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Fueld By Pessimistic News, Volatility ETFs and ETNs Surge

Fri, 18 Mar 2011 15:00:35 -0400

With unfavorable news popping up almost around the world, global markets are on the fritz. Even volatility exchange traded funds (ETFs) are experiencing greater volatility in the underlying volatility index. The CBOE Market Volatility Index, also known as the “VIX” or the “fear...

ETF Plays as Volatility Returns

Fri, 11 Mar 2011 14:00:59 -0500

The “VIX,” or our market’s “fear guage,” is on the rise again as stock markets take a dive on renewed global volatility. If volatility continues it may be an indicator that equities could head further south, and VIX-related exchange traded funds (ETFs) can be a hedge...

VIX ETF and ETN Options for Volatile Markets

Tue, 08 Mar 2011 16:00:41 -0500

If you’re frustrated by the market’s volatility lately, there are exchange traded funds (ETFs) and exchange traded notes (ETNs) out there that you can use to play it. In the first two months of 2011, around $334 million found its way into 14 ETFs that track the CBOE Market Volatility...

These ETFs tangle with volatile markets

Sun, 06 Mar 2011 12:01:12 -0500

Nervous investors continue to buy VIX-futures ETFs even though they’ve consistently lost money during stocks’ bounce from the March 2009 low.

VIX ETFs: A Play On Recent Market Volatility

Wed, 23 Feb 2011 16:00:19 -0500

VIX exchange traded funds (ETFs) and exchange traded notes (ETNs) are once again part of the conversation as conflicts in Libya and the broader Middle East intensify. The VIX – otherwise known as the market’s “fear gauge” – jumped to their highest point all year today....

Using ETFs To Access Alternatives

Tue, 08 Feb 2011 17:00:08 -0500

The introduction and rapid expansion of the ETF industry has no doubt been a very positive development for investors big and small. The low fees characteristic of the exchange-traded structure have allowed cost-conscious investors to minimize expenses without sacrificing returns, while the enhanced tax efficiency and intraday trading capabilities have contributed increased flexibility to the investing public. As ETFs have gained traction with investors, the size of the product lineup has grown rapidly. What was relatively recently a few hundred funds offering exposure to “plain vanilla” stock and bond benchmarks has quickly grown to a stable of more than 1,100 exchange-traded products covering nearly every nook and cranny of the investable universe. This proliferation of ETFs has given investors more precise tools for accessing traditional asset classes, but it has also opened up investment strategies and asset classes that were previously either out-of-reach or that required considerable time and/or expenses [...]

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The Skinny on XVIX

Fri, 28 Jan 2011 11:55:00 -0500

Now Sixteen Volatility ETPs, Four of Which Are Optionable

Wed, 26 Jan 2011 11:26:00 -0500

Guest Columnist at The Striking Price for Barron’s

Wed, 12 Jan 2011 14:34:00 -0500

December ETF Roundup: Launches, Filings, and Closures

Mon, 03 Jan 2011 07:00:31 -0500

December continued the impressive wave of product innovation that has become expected of the ETF industry. Various issuers introduced first-to-market products and continued the impressive expansion of the exchange-traded product pipeline. After starting with a flurry of activity, product launches slowed in the second half of the month leading up to the holiday season. Still, more than a dozen new ETFs debuted in December. Below, we highlight all of the new additions to the ETF lineup over the last month, as well as some new fund filings: New ETFs ETFs that began trading in December include: UBS launched the E-TRACS Daily Long-Short VIX ETN (XVIX). The new exchange-traded note is linked to the S&P 500 VIX Futures Term-Structure Index Excess Return, and is the first U.S. listed exchange-traded product to offer investors both long and short exposure to VIX benchmarks, with positions rebalanced on a daily basis [see UBS [...]

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Ten New Years’ Resolutions For ETF Investors

Thu, 30 Dec 2010 07:00:09 -0500

With 2011 just around the corner, tis the season for pledges to better everything from health to wealth to happiness in the coming year. Below, we offer up ten New Years’ Resolutions for ETF investors looking to cut expenses, round out their portfolios, and maximize returns in 2011 [for more ETF insights, sign up for our free ETF newsletter]: 10. Slim Down Your Expense Ratios If you’ve already made the jump away from pricey active mutual funds to more cost-efficient ETFs, our Mutual Fund To ETF Converter might not be of much use. But just because you’ve embraced ETFs in an effort to become a more cost conscious investor doesn’t mean that you’ve done all you can to trim your expense ratio. Some of the gaps between expense ratios of similar or even identical ETFs are wide enough to drive a truck through, meaning that there may be opportunities to slash [...]

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VIX and More and the 2011 Bespoke Roundtable

Fri, 17 Dec 2010 17:14:00 -0500

Reviewing All The VIX ETF Options

Fri, 10 Dec 2010 10:00:53 -0500

The impressive ETF boom that has unfolded over the last several years has been the result of a number of attractive features of the exchange-traded structure relative to traditional mutual funds. In addition to considerably lower expenses, intraday liquidity and enticing tax breaks have fueled interest in ETPs, which now number nearly 1,100 in the U.S. and hold close to $1 trillion in assets. As ETFs have become more targeted and specialized, they have allowed all types of investors to gain exposure to securities and strategies that were previously hard-to-reach. ETFs such as the Market Vectors China ETF (PEK) offer exposure to unique assets like China’s A-shares market, a new opportunity for U.S. investors [see Closer Look At The China A-Shares ETF (PEK)]. ETFs have also been instrumental in making commodities a widely available asset class, making it possible for all types of investors to access both futures-based and physically [...]

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XVIX: The First Volatility Strategy ETP

Sat, 04 Dec 2010 09:06:28 -0500

The stock market is volatile. Exchange-traded products that measure the volatility of the stock market are even more volatile. Yes, volatility is volatile. When used properly (and managed daily), adding an extremely volatile volatilty ETN to a stock portfolio can reduce the overall portfolio volatility. That is the essence of diversification.

I welcomed the introduction . . . → Full Story: XVIX: The First Volatility Strategy ETP

UBS Debuts Long-Short VIX ETN

Wed, 01 Dec 2010 10:49:01 -0500

UBS became the latest issuer to introduce a product linked to a VIX-related index on Wednesday, launching the E-TRACS Daily Long-Short VIX ETN (XVIX). The new exchange-traded note, which is linked to the S&P 500 VIX Futures Term-Structure Index Excess Return, is the first U.S.-listed ETP to offer investors exposure to a strategy that includes both long and short exposure to VIX benchmarks. The underlying index is a composite that measures the return from taking a long 100% position in the S&P 500 VIX Mid-Term Futures Index Excess Return with a short 50% position in the S&P 500 VIX Short-Term Futures Index Excess Return. The positions are rebalanced on a daily basis. The CBOE Market Market Volatility Index, better known as the VIX, is a widely followed indication of the market’s expectation for volatility in U.S. equities over the next 30 days. Because the index is computed based [...]

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News about

What is an ETF? — Part 28: CBOE Volatility Index (VIX)

ETF Insider: Sour Data Spooks Bulls

Related Posts:

ETF Insider: Opportunities In A Pullback

Related Posts:

VIX ETP Returns for Q1 2012

An Updated Field Guide to VIX ETPs

Interview at OptionPundit

Six Noteworthy ETF Innovations

Related Posts:

Inverse VIX ETNs: Reviewing All The Options

Related Posts:

UBS Unveils Natural Gas, Oil “Contango ETNs”

Related Posts:

VIX ETFs Thrive as Market Stumbles

VIX ETFs End Week With Move Higher

Examining VIX ETF Performance During A Sell-Off

Examining VIX ETF Performance During A Sell-Off

Related Posts:

Fueld By Pessimistic News, Volatility ETFs and ETNs Surge

ETF Plays as Volatility Returns

VIX ETF and ETN Options for Volatile Markets

These ETFs tangle with volatile markets

VIX ETFs: A Play On Recent Market Volatility

Using ETFs To Access Alternatives

Related Posts:

The Skinny on XVIX

Now Sixteen Volatility ETPs, Four of Which Are Optionable

Guest Columnist at The Striking Price for Barron’s

December ETF Roundup: Launches, Filings, and Closures

Ten New Years’ Resolutions For ETF Investors

VIX and More and the 2011 Bespoke Roundtable

Reviewing All The VIX ETF Options

XVIX: The First Volatility Strategy ETP

UBS Debuts Long-Short VIX ETN