SVOL - SVXY: More Aggressive Version Of SVOL

2024-04-02 21:16:40 ET

Summary

• ProShares Short VIX Short-Term Futures ETF (SVXY) offers 0.5x exposure to shorting VIX futures, making it a unique "leveraged" ETF.
• SVXY has outperformed the highly popular Simplify Volatility Premium ETF (SVOL) and the overall market in the last 3 years.
• SVXY behaves differently in extreme cases, such as during the market drop in March 2020, but has performed well overall.
• The fund reduced its leverage in 2018 after almost getting wiped out during Volmageddon.

Introduction

ProShares Short VIX Short-Term Futures ETF ( SVXY ) is an interesting ETF that makes daily short trades on VIX futures. Technically the fund is labeled as a "leveraged" ETF but it's actually the opposite of leveraged because it offers only 0.5x exposure to shorting of VIX futures so the fund is only using half of its buying power to make trades and only exposed to half of the movement in VIX in the inverse . ...

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