Information on Volatility Linked ETPs

Short Volatility Linked ETPs

Short Short-Term Volatility Linked ETPs

There are several ETPs that are designed to offer a return based on a portfolio that offers the inverse daily performance of a strategy that owns VIX futures contracts targeting a one-month maturity. These are commonly referred to as a short short-term futures ETPs and offer daily returns equal to the inverse of an index that holds the front two month futures contracts in a way that results in a consistent one-month maturity.

There are a couple of short short-term focused ETPs that have slightly different strategies than targeting a one-month time horizon using VIX futures. The VelocityShares 1X Short VSTOXX Futures ETN uses the same approach as the other short ETPs focusing on a strategy using VIX futures, but uses VSTOXX Futures to target a one-month maturity. Finally, the REX VolmaxxTM Short VIX Weeklys Futures Strategy ETF uses a weighting in VIX futures that targets a maturity less than one month.

More information about the performance comparison of short versus long ETPs may be found here.

More information for each of these short short-term exchange traded products may be found by clicking on the ETP's name on the table below.

Exchange Traded Product Brand Issuer Strategy Ticker
ProShares Short VIX Short-Term Futures ETF ProShares ProShares Inverse Daily One Month Maturity with VIX Futures SVXY
REX VolmaxxTM Short VIX Weeklys Futures Strategy ETF REX VolMAXX Exchange Traded Concepts Inverse Daily Less Than One Month Maturity with VIX Futures VMIN
VelocityShares Daily Inverse VIX Short-Term ETN VelocityShares Credit Suisse AG Inverse Daily One Month Maturity with VIX Futures XIV
VelocityShares Daily Inverse VSTOXX Futures ETN VelocityShares UBS AG Inverse Daily One Month Maturity with VSTOXX Futures EXIV

Short Mid-Term Volatility Linked ETP

There is also one ETP that offers the inverse of daily performance from a consistent five-month maturity through holding a portfolio of VIX futures contracts. This exchange traded product is referred to as being short mid-term futures and will offer the daily inverse of a portfolio holding positions in the fourth, fifth, sixth, and seventh month futures contracts. Again, more information about the performance comparison of short versus long ETPs may be found here.

Exchange Traded Product Brand Issuer Strategy Ticker
VelocityShares Daily Inverse VIX Medium Term ETN VelocityShares Credit Suisse AG Inverse Daily Five Month Maturity with VIX Futures ZIV


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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