Disappearing ETF? XIV Split Leaves Some Puzzled
June 30, 2011 at 04:05 AM EDT
One of the more innovative and popular recent additions to the fast growing ETP lineup is the VelocityShares Daily Inverse VIX Short Term ETN (XIV), an exchange-traded note that offers daily inverse exposure to an index comprised of short-term VIX futures contracts. XIV has become popular as a tool for exploiting the nuances of an upward-sloping futures curve, essentially reversing contango-related headwinds and putting them at the backs of investors [see Highlighting Inverse VIX ETNs]. Thanks in part to tremendous gains recorded in recent months, XIV has quickly taken in more than $250 million in assets–a tremendous pace of growth for such a young ETP. In recent days, there’s been a bit of confusion as to where some of that money went. Split Snafus? Effective June 27, XIV underwent a 10-for-one split whereby every share of XIV was turned into ten shares. The issue of new shares corresponded with a [...] Click here to read the original article on ETFdb.com. Related Posts: ETF Insider: Beating The Market In A Rocky Week Inverse VIX ETNs: Reviewing All The Options ETF Insider: Risks Remain In Europe Five ETF Strategies For A Sideways Market May ETFdb Category Kings: Best Performing ETFs
