|Bid||11.55 x 1000|
|Ask||11.57 x 3000|
|Day's Range||11.57 - 11.85|
|52 Week Range||11.29 - 59.20|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.99%|
US markets had the worst trading session so far this year on Wednesday, May 17, 2017.
Volatility was at historical lows -- until yesterday, when the market fell flat on its face and the CBOE VIX went flying. The iPath S&P 500 VIX Short-Term Futures ETN (VXX) and the ProShares VIX Short-Term Futures ETF (VIXY) gained 18% apiece, rising to the top of the ETP universe. Morningstar's Christine Benz offers three strategies to deal with market jitters: 1) understand the difference between risk tolerance and risk capacity 2) re-asses portfolio allocation and 3) go shopping.
The iPath S&P 500 VIX Short-Term Futures ETN (VXX) and the ProShares VIX Short-Term Futures ETF (VIXY) gained 18% each. This Bloomberg article suggested that VXX ETN short interest was growing, but Macro Risk Advisors' derivatives strategist Pravit Chintawongvanich in a recent report noted that the highlighted chart was kind of missing the point. It is a portfolio that owns volatility through a rolling position in front-month VIX futures. The reason for VXX's exponential decline is the carry cost of owning volatility.