Volatility ETF Overview

Volatility ETFs are popular trading products. These products are linked to volatility futures. They own or short futures based on the CBOE Volatility Index (VIX). The VIX index portrays the price volatility embedded in the option prices of the S&P 500 Index for the next 30 days.

Investors need to understand that these funds track the futures on the VIX, not VIX itself. Because of the nature of the VIX futures markets, the rolling cost of futures may be detrimental to performance results. Thus, these products may lose money over the long term. Investors need to approach these products with care.

With 19 ETFs traded in the U.S. markets, Volatility ETFs gather total assets under management of $4.23B. The average expense ratio is 1.33%. Volatility ETFs can be found in the following asset classes:

  • Alternatives

The largest Volatility ETF is the VelocityShares Daily Inverse VIX Short-Term ETN XIV with $1.17B in assets. In the last trailing year, the best performing Volatility ETF was the VMIN at 168.08%. The most-recent ETF launched in the Volatility space was the VelocityShares 1X Long VSTOXX Futures ETN EVIX in 05/02/17.

TOP ETF PERFORMERS

EXIVVelocityShares 1X Daily Inverse VSTOXX Futures ETN22.04%
ZIVVelocityShares Daily Inverse VIX Medium-Term ETN13.56%
XIVVelocityShares Daily Inverse VIX Short-Term ETN13.34%
SVXYProShares Short VIX Short-Term Futures ETF13.01%
VMINREX VolMAXX Short VIX Weekly Futures Strategy ETF11.73%

BOTTOM ETF PERFORMERS

TVIXVelocityShares Daily 2x VIX Short-Term ETN-23.42%
UVXYProShares Ultra VIX Short-Term Futures ETF-23.27%
TVIZVelocityShares Daily 2x VIX Medium-Term ETN-22.68%
EVIXVelocityShares 1X Long VSTOXX Futures ETN-13.58%
VIXYProShares VIX Short-Term Futures ETF-12.06%

top creations

UVXYProShares Ultra VIX Short-Term Futures ETF14.56
XVZiPath S&P 500 Dynamic VIX ETN4.72
ZIVVelocityShares Daily Inverse VIX Medium-Term ETN3.97
TVIZVelocityShares Daily 2x VIX Medium-Term ETN2.03
EXIVVelocityShares 1X Daily Inverse VSTOXX Futures ETN1.37

top redemptions

SVXYProShares Short VIX Short-Term Futures ETF-376.12
XIVVelocityShares Daily Inverse VIX Short-Term ETN-169.40
VXXiPath S&P 500 VIX Short-Term Futures ETN-100.33
VIXMProShares VIX Mid-Term Futures ETF-8.15
VIXYProShares VIX Short-Term Futures ETF-1.39

AUM WINNERS

TVIZVelocityShares Daily 2x VIX Medium-Term ETN144.38%
VXZiPath S&P 500 VIX Mid-Term Futures ETN10.69%
EXIVVelocityShares 1X Daily Inverse VSTOXX Futures ETN8.79%
ZIVVelocityShares Daily Inverse VIX Medium-Term ETN7.75%
VXXiPath S&P 500 VIX Short-Term Futures ETN6.96%

AUM LOSERS

VMINREX VolMAXX Short VIX Weekly Futures Strategy ETF-23.51%
UVXYProShares Ultra VIX Short-Term Futures ETF-20.31%
EVIXVelocityShares 1X Long VSTOXX Futures ETN-11.01%
SVXYProShares Short VIX Short-Term Futures ETF-10.63%
VMAXREX VolMAXX Long VIX Weekly Futures Strategy ETF-10.14%

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