There are two new active ETFs on volatility - VMAX and VMIN
The funds' objective is to "minimize time to maturity of VIX futures portfolio" which will tend to make VMAX slightly more sensitive to VIX moves than most 1x long ETFs, and will make VMIN gain more in calm times than 1x short ETFs due to higher decay.
Continue reading "Active ETFs on Volatility"
Here is a list of the more popular volatility ETFs.
The items in bold are the preferred instruments for their respective category due to their trading characteristics (e.g. better volume, tighter spreads etc). Those labelled "identical" share almost identical price behaviour (in percentage terms) as the preferred one in the category.
Performance 2017 YTD
Continue reading "Volatility ETFs comparison"
VIX came back to life much sooner than I expected.
- Price change of VIX, VIX futures, and ETFs show what sort of delta to expect in a VIX surge
- What next: 3 ways to take advantage of this situation
Continue reading "VIX awakens"
Trade idea for next 3 months - Aug Sep Oct - is to long volatility
- Stock uptrend still waiting for a good correction
- Volatility (VIX) is still at rock bottom (sub 10s)
- August is seasonally worst month for stocks
These 3 factors make it a ripe for a good risk-reward play on volatility
Continue reading "Long Volatility until November"