Followers | 680 |
Posts | 141228 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Tuesday, May 09, 2017 10:15:52 AM
By Ryan Vlastelica | May 9, 2017
VIX ended at a 24-year low on Monday
What are investors buying when the U.S. stock market is at a historic level of quiet? Evidently, anything except volatility itself.
The largest exchange-traded product designed to track market volatility has seen heavy outflows of late, a retreat that corresponds with historic declines in the CBOE Volatility Index VIX, -0.10% On Monday, the so-called “fear index” fell 7.6% to close at its lowest level in more than 23 years.
The iPath S&P 500 VIX Short-Term Futures ETN VXX, -1.06% saw outflows of $9.6 million over the past session, bringing its redemptions over the past week to $44.3 million, according to FactSet data. The outflows over both periods represent the largest of any product in the alternative space, and the weekly outflows were more than 10 times as large as the outflows for the product with the second-largest redemption. Trading has been elevated on it, however. In April, the ETN saw volume of nearly 1.1 billion shares, a monthly record.
The product, which is an exchange-traded note designed to be a short-term holding, tracks an index with exposure to VIX futures contracts that have an average maturity of one month. It has nearly $830 million in assets and is a popular way for investors to hedge against volatile times, as it tends to have an inverse correlation with the equity market.
Ahead of President Donald Trump’s inauguration, the category of volatility products saw massive inflows and trading as investors bet that the so-called “Trump rally” would stall shortly after he took office. That trade didn’t work out; the iPath ETN is down about 45% thus far this year, hitting record lows.
The opposite of this trade has paid off, however, with inverse volatility products finding new fans. The ProShares Short VIX Short-Term Futures ETF SVXY, +1.15% has gotten inflows of $66.9 million over the past week, and it is up nearly 70% thus far in 2017, hitting record highs.
However, trading isn’t as active as it has been in the past. Total trading in April was about 67 million shares, below its March total and substantially below its November total of 107 million shares.
http://www.marketwatch.com/story/as-vix-hits-multidecade-low-investors-retreat-from-volatility-products-2017-05-09
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
Recent VXX News
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 09:25:11 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 09:21:10 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 09:15:52 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 08:14:45 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 08:10:31 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 07:47:15 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 07:27:52 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 07:23:47 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 07:11:54 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 07:11:42 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 07:08:25 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 06:54:20 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 06:54:05 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 06:25:46 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 05:27:03 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 05:00:45 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 04:52:11 PM
- Form FWP - Filing under Securities Act Rules 163/433 of free writing prospectuses • Edgar (US Regulatory) • 03/11/2024 03:34:14 PM
- Form FWP - Filing under Securities Act Rules 163/433 of free writing prospectuses • Edgar (US Regulatory) • 03/11/2024 03:30:31 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 03:21:02 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 03:10:38 PM
- Form FWP - Filing under Securities Act Rules 163/433 of free writing prospectuses • Edgar (US Regulatory) • 03/11/2024 03:03:20 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/11/2024 02:47:16 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/08/2024 08:47:00 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 03/08/2024 08:19:13 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM