Janus Capital Group has launched three Volatility-Strategy exchange traded notes (ETNs) under its VelocityShares brand – the VelocityShares VIX Variable Long/Short ETN (LSVX), VelocityShares VIX Tail Risk ETN (BSWN) and VelocityShares VIX Short Volatility Hedged ETN (XIVH).
The Volatility-Strategy ETNs use a systematic approach to investing in VIX futures that has a net long or net short volatility position that varies due to daily changes in the volatility market.
“These products are the result of our experience in developing sophisticated exchange traded products (ETPs) for institutional investors that seek to use volatility as a component of their portfolios,” says Nick Cherney, senior vice president and head of ETPs at Janus Capital Group.
“The products allow sophisticated investors to implement volatility strategies without the need to actively trade underlying positions on a daily basis,” says Steve Quinn, head of ETP distribution at Janus Capital Group.
The new Volatility-Strategy ETNs are being issued by UBS. The underlying indices of the ETNs have been published since 2011.
The Volatility-Strategy ETNs are the first ETNs to launch since Janus acquired VS Holdings, the parent company of VelocityShares, in November 2014. The ETNs are the first UBS issued products launched by Janus Capital.
Janus’ exchange traded products business is approximately USD3.3 billion in assets across 18 investment products as of 31 March 2016.
