Is a VIX ETP an investment in the VIX?

Is a VIX ETP an investment in the VIX?

This article examines VIX-based ETPs (exchange traded products) and illustrates that both the return and risk of these products are not related to the return and risk of the VIX index. The authors note that VIX ETPs do not correlate well to the VIX index. In fact, these funds are not even designed t...

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Veröffentlicht in:Financial services review (Greenwich, Conn.) Conn.), 2016-03, Vol.25 (1), p.73
Hauptverfasser: Clowers, R. Parker, Jones, Travis L
Format: Artikel
Sprache:eng
Schlagworte:
Analysis
Economic aspects
Equity
Evaluation
Exchange traded funds
Expected values
Financial planners
Forecasts and trends
Futures
Growth stocks
Index funds
Investment policy
Investments
Prices
Put & call options
Short term
Stock exchanges
Volatility
Volatility (Finance)
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Zusammenfassung:This article examines VIX-based ETPs (exchange traded products) and illustrates that both the return and risk of these products are not related to the return and risk of the VIX index. The authors note that VIX ETPs do not correlate well to the VIX index. In fact, these funds are not even designed to have a high correlation to the VIX index. Individual investors can often mistake VIX ETPs for an investment in the VIX index itself, which is incorrect and may lead to a costly mistake.
ISSN:1057-0810
1873-5673