Bringing you live news and features since 2006 

Volatility

VelocityShares launches VIX FUTURES Long/Short Strategy Indices

RELATED TOPICS​

VelocityShares has launched the S&P 500 VIX Futures Long/Short Strategy Indices. VelocityShares worked closely with S&P in the design and development of these new indices, which are the first to offer beta exposure to complex volatility strategies. The indices were developed specifically to be referenced by future investment products.

Increased volatility in the global financial markets and large downward moves in the US equity market have resulted in billions of dollars flowing into tail risk funds. Until now, there hasn’t been an alternative to these opaque, actively managed strategies. The recently launched indices provide a transparent, well-defined beta strategy as an alternative to what other managers are positioning as alpha generation.

“Tail Risk and other volatility funds have grown enormously as investors have sought effective means of insulating their portfolios,” says Nick Cherney, Co-founder and Chief Investment Officer of VelocityShares. “Until now, it has been very hard to evaluate the performance of these funds, and this new family of indices will truly change the landscape for volatility and tail risk investors. The innovation here is to take very sophisticated developments in pricing volatility exposure, and deliver these advanced concepts in an efficient and investible index. This is a revolutionary development for volatility investors.”

A paper describing the basic concepts behind the creation of the indices, “Portfolio Applications for VIX-based Investments” was recently published in the November/December issue of Journal of Indexes.

 

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by