Replies to post #872 on VelocityShares Daily Inverse VIX Short Term ETN (XIV)

[MJ moneymaker]

I'm actually not in here any more. I'm pretty sure the VIX ETNs roll a small percent into the next contract on a daily basis.

I think the VIX is probably in backwardation right now which is the opposite of contango. I can't check contracts in my phone but I'll tell you if VIX is in backwardation then xiv will decay some because of it and the long VIX ETNs TVIX and UVXY will benefit. Conversely when VIX is in contango like last summer and spring TVIX and UVXY decay while xiv and SVXY benefit slightly. Note how SVXY was around $90 last summer. That's the product of many months of VIX contango. Now SVXY is around 32.