We all have our morning rituals and one of mine involves checking the daily ETF.Com email I receive at CBOE. The top story was the nominations for the annual ETF.Com awards ceremony which is scheduled for March 30th in New York. I went through the list of nominees highlighting partners of CBOE and was delighted to see the REX VolMAXX Long VIX Weekly Futures Strategy ETF (Ticker: VMAX) recognized with a nomination in two categories. VMAX has been nominated for both Most Innovative New ETF and Best New Alternatives ETF. We are all aware of the suite of VIX related exchange traded notes and funds that have been available for some time, but VMAX has entered the market focusing on a niche that is relatively new as well.
As the name indicates VMAX gives owners exposure to near dated or Weekly VIX Futures. The fund was launched in May of 2016, a few months after the introduction of VIX Weekly Futures in 2015. Note on the chart below that the beta of VIX futures relative to spot VIX increases dramatically as the contract nears expiration.
The motivation for launch VMAX was to give investors exposure to nearer dated VIX Futures which move more in line with spot VIX than longer dated VIX futures contracts. I sort of expected VMAX to be nominated in the Best New Alternative category but believe the Most Innovative New ETF nod is well deserved.
To learn more about the ETF.Com awards visit www.etf.com and to learn more about the REX VolMAXX Long VIX Weekly Futures Strategy ETF visit www.volmaxx.com