The first quarter of 2013 has smiled on leveraged volatility exchange-traded products.
Highlighting a Bloomberg
report, Brendan Conway of Barron's reports
that, amidst concerns over crisis in Europe, more than $520 million has flowed into the ProShares Ultra VIX Short-Term Futures ETF
] and the VelocityShares Daily 2x VIX Short-ETN
], with $620 million flowing into the Barclays iPath S&P 500 Short-term VIX Futures ETF
The funds' new shareholders may be paying a heavy price for their volatility hedge. Barron's
notes that, "the failure of the crisis to play out means many investors are losing money quickly."
Neil Anderson, Managing Editor
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