CME, the world's biggest exchange owner, and smaller venue Cboe, known for
its VIX volatility products, were allowed to offer the products Friday after pledging to U.S. regulators that they comply with the law.
Not exact matches
The stock market's slump that month prompted the largest one - day spike in the Cboe
Volatility Index (known as the
VIX), as traders who had bought
products designed to profit off a subdued
VIX hedged against further losses.
MORE SHOES TO DROP: The stock slump led to a massive unwinding of a short position in
products related to the
VIX volatility index, as Credit Suisse and Nomura announced the shuttering of their respective exchange - traded notes that bet on lower
volatility.
I've heard people argue that owning some
product that tracks market
volatility — like a
VIX exchange - traded note — have a place in your investment portfolio.
It's well known that long
volatility Exchange Traded
Products (ETPs) like VXX, UVXY, and TVIX often experience devastating losses during market quiet spells — even when the value of the
VIX is staying relatively stable.
VIX futures and other
products traded rich relative to realized
volatility.
Mid-term
volatility products tend to be less volatile than short - term
products but also tend to track less close to the
VIX index.
For anyone holding an electronically traded
product (ETP) tracking the inverse of the
VIX index, the end of the low
volatility regime that was 2017 obliterated their allocated positions.
RCM Alternatives has a great piece (HT Tadas) out outlining what the
VIX is, the market for
VIX related
products, and how to think about
volatility as an asset class.
The public needs to understand
volatility today, and, while
VIX is a complex
product, it's also simple to understand so it is bringing more transparency to the market, and ultimately more volumes.
First, although the
VIX is the most understood
volatility proxy, its
products are by no means the most liquid.
Should investors regard any of the exchange - traded
products (ETP) based on S&P 500 Index option - implied
volatility (
VIX) futures as long - term holdings?
There are also inverse and derivative - based
products that can provide investors exposure to vehicles such as the CBOE
Volatility Index (
VIX), letting investors «customize their hedge,» Mordy says.