Frequently Asked Questions

What do volatility-linked ETPs track?

Volatility-linked exchange-traded funds (ETFs) and exchange-traded notes (ETNs) typically are linked to the value of an index and not to the VIX itself. Generally, these indexes are based on a rolling long position in a basket of VIX futures, set to target a specific maturity. Examples include the S&P 500 VIX Short-Term Futures Index and the S&P 500 VIX Mid-Term Futures Index.

More information about the S&P 500® VIX Short-Term FuturesTM Index may be found at: https://us.spindices.com/indices/strategy/sp-500-vix-short-term-index-mcap

More information about the S&P 500® VIX Mid-Term FuturesTM Index may be found at: https://us.spindices.com/indices/strategy/sp-500-vix-mid-term-futures-index

What is a Volatility Linked Exchange Traded Product?



 

 

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.