Volatility Linked ETPs

Information on Volatility Linked ETPs

Since the introduction of the first volatility linked exchange traded product in 2009 there have been several other volatility linked ETPs rolled out to the market. Just like other market segments with exchange traded products there are long, leveraged long, short, and strategy related ETPs now available for trading.

The Various ETPs available may be found under one of the following categories:


Investors should be aware that volatility-linked ETPs are designed to track Cboe VIX futures, rather than spot VIX. Many volatility-linked ETPs are highly likely to lose value over time. Accordingly, volatility-linked ETPs may be unsuitable for certain retail investors, particularly those who plan to use them as traditional buy-and-hold investments.

Investments in ETPs involve risk, including the possible loss of principal, and are not appropriate for all investors. Non-traditional ETPs, including leveraged and inverse ETPs, pose additional risks and can result in magnified gains or losses in an investment. Specific risks are outlined in the fund prospectus and may include concentration risk, correlation risk, counterparty risk, credit risk, market risk, interest rate risk, volatility risk, tracking error risk, among others. Investors should consult with their tax advisors to determine how the profit and loss on any particular investment strategy will be taxed. Tax laws and regulations change from time to time and may be subject to varying interpretations. The information in this program is provided for general education and information purposes only. No statement within this program should be construed as a recommendation to buy or sell a security or to provide investment advice.

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