October 03, 2011 at 07:00 AM EDT
Volatility ETPs: Where Are The Critics Now?
This article was written by Paul Weisbruch, the VP of ETF/Options Sales and Trading at Street One Financial. An interesting dynamic shift has occurred in the VIX (CBOE Volatility Index) since the early August equity market meltdown, where the VIX futures curve itself moved from a prolonged period of contango to backwardation. For years, Volatility/VIX related ETFs and ETNs were much maligned in the media and by advisory and institutional firms alike as far as their ability or lack of to track spot VIX themselves. However, if an investor carefully reads the product prospectuses they will note that none of the VIX related ETF/ETN products on the market currently are designed to track spot VIX. This said, utilizing the products effectively as plays on volatility as well as volatility hedges requires not only a comprehensive understanding of how each individual fund is designed, but also a thorough scope of the [...] 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 Six ETFs Up 45% Or More During The Recent Crisis Volatility ETFs: The Real Safe Haven? VelocityShares Debuts Its Lineup Of VIX ETNs
This article was written by Paul Weisbruch, the VP of ETF/Options Sales and Trading at Street One Financial. An interesting dynamic shift has occurred in the VIX (CBOE Volatility Index) since the early August equity market meltdown, where the VIX futures curve itself moved from a prolonged period of contango to backwardation. For years, Volatility/VIX related ETFs and ETNs were much maligned in the media and by advisory and institutional firms alike as far as their ability or lack of to track spot VIX themselves. However, if an investor carefully reads the product prospectuses they will note that none of the VIX related ETF/ETN products on the market currently are designed to track spot VIX. This said, utilizing the products effectively as plays on volatility as well as volatility hedges requires not only a comprehensive understanding of how each individual fund is designed, but also a thorough scope of the [...]

Click here to read the original article on ETFdb.com.

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