Exchange-traded products tracking VIX futures are seeing their first signs of life after investors yanked more than $570 million from two ETPs following the spike in market volatility.
The VelocityShares Daily 2x VIX Short Term ETN, known by its ticker TVIX, took in more than $20 million this week, the first time the $300 million ETN has seen inflows this month, according to Bloomberg data. And the $210 million ProShares Ultra VIX Short-Term Futures fund, or UVXY, gathered $13.3 million, the data show. Both funds promise to provide twice the performance of the Cboe SPX Volatility Index.
The funds had been hemorrhaging money since the equity selloff sent the VIX to its highest level in two years on Feb. 5. The price of UVXY, for example, soared as much as 71 percent that day, but then plunged by a record 33 percent in the following session.
In the meantime, buyers also have been pouring money into a strategy that bets against volatility. The ProShares VIX Short-Term Futures fund, ticker SVXY, saw a single day inflow of almost $300 million following the market rout. With the VIX showing a hint of normalcy, sliding back to around 20 after soaring by the most on record last week, some investors are comfortable betting on market calm again.
To contact the reporter on this story: Carolina Wilson in New York City at cwilson166@bloomberg.net.
To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net, Eric J. Weiner, Andrew Dunn
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