UVXYProShares Ultra VIX Short-Term Futures ETF
UVXY Fund Description
UVXY provides 1.5x leveraged exposure to an index comprising first- and second-month VIX futures positions with a weighted average maturity of 1 month.
UVXY Factset Analytics Insight
UVXY is a commodities pool delivering daily leveraged exposure to short-term VIX futures, designed to capture the volatility of the S&P 500, in a large and liquid wrapper. "Daily" is the operative word here—as it is for most geared products. Returns over holding periods greater than one day can be, and often are, significantly different from 1.5x. "Futures" is another key word here, as this product—like all peer products—does not deliver leveraged returns on the VIX index itself, but instead on front- and second-month futures. As a commodities pool, investors will get K-1 at tax time but avoid the counterparty risk of an exchange-traded note. UVXY delivers ample liquidity, a mission-critical feature in this ultra-tactical space. The fund trades a huge volume most days—on par with its AUM—signaling an extremely brief holding period for most investors here. With typically massive roll costs, and a high expense ratio, it doesn't pay to stay here long.Prior to February 28, 2018 the fund provided 2x leveraged exposure.
UVXY CHARTS AND PERFORMANCE
UVXY Factset Analytics Block Liquidity
This measurement shows how easy it is to trade a $1 million USD block of UVXY. UVXY is rated a 5 out of 5.
Options Strategies for Outcome Investing
Options allow you to customize investment outcomes. Using the strategy builders provided by Cboe Vest Technologies, you can construct some of the most common option strategies. Check out our user guide for more information on how to use the tool.
A collar strategy is a protective option strategy constructed by writing a call and buying a put with the same expiration date while being long the underlying security.
A covered call is an income strategy constructed by writing a call option against a holding of the underlying security.