AccuShares Spot CBOE VIX Down Shares (fka VXDN)

[Wildbilly]

VXDN: A New Spot VIX Fund That Will Perform Similar To Inverse Volatility Funds - AccuShares Spot CBOE VIX Down Class Shares ETF (NASDAQ:VXDN) | Seeking Alpha

Summary

VXDN is the sister fund of VXUP. The pair start trading on May 19th, 2015.
VXDN doesn't benefit from contango like SVXY, but it has a similar property.
The Spot VIX is low right now and I would wait for a better opportunity to purchase VXDN.
In this article we will compare the new AccuShares Spot CBOE VIX Fund Down Class Shares (Pending:VXDN) and an old favorite of mine, ProShares Short VIX Short-Term Futures ETF (NYSEARCA:SVXY).

Your first question might be, what is the difference? VXDN will aim to track the spot VIX while SVXY follows the VIX futures market. SVXY makes gains by profiting from the price difference between the first and the second month futures contracts known as contango. Contango occurs when the second month is more expensive than the front month future contract. For more information, click on the contango link. Both funds will benefit from a general decline in volatility, although at different paces.

VDXN will not benefit from contango, or will it? Per the prospectus if the VIX Index, also known as the spot VIX, is 30 or less, than 0.15% per day will transfer from AccuShares Spot CBOE VIX Fund UP Class Shares

(Read more:) http://seekingalpha.com/article/3189296-vxdn-a-new-spot-vix-fund-that-will-perform-similar-to-inverse-volatility-funds

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