Inverse VIX ETNs: Reviewing All The Options
June 23, 2011 at 07:00 AM EDT
As the lineup of ETFs approaches the 1,300 mark, a growing pool of issuers continue to deliver innovative new products that tap into strategies and asset classes that have never before been accessible through the exchange-traded structure. One relatively new area that has attracted billions of dollars in new assets in recent years is the volatility space; there are now 15 ETPs in the Volatility ETFdb Category with aggregate assets of nearly $3 billion. The development of volatility ETPs has been an interesting illustration of the increasingly wide reach of the ETF industry. Unlike stocks and bonds, a direct investment in volatility isn’t possible; the relevant values are derived from prices of other securities, and it isn’t possible to simply go out and buy volatility. Because volatility tends to move in the opposite direction of equity markets, the idea of transforming this metric into an investable asset had obvious appeal [...] Click here to read the original article on ETFdb.com. Related Posts: Reviewing All The VIX ETF Options Examining VIX ETF Performance During A Sell-Off Talking VIX And Volatility ETPs With Nick Cherney Inverse VIX ETNs: Free Money? iPath Adds Another Volatility ETN (IVO)
