Let's talk VIX (charts)

Discussion in 'Trading' started by 1a2b3cppp, Jun 17, 2012.

  1. Assuming I didn't want to trade VIX futures, which ETF makes the best substitution?

    I am interested in the ETFs because:

    1) no rollovers
    2) OEC doesn't offer VIX futures

    I've seen the following:

    VXX (S&P500 short-term futures)
    IVO (inverse)
    XXV (inverse S&P500)

    SVXY (ProShares short VIX short-term)
    TVIX (VelocityShares Daily 2x VIX short-term)
    VZZ (Long Enhanced S&P500 mid-term)
    VXZ (S&P500 VIX mid-term futures)
    VIXM (ProShares mid-term futures)
    VIXY (ProShares short-term futures)
    XVIX (daily long-short VIX)

    What is the difference between short, mid, and long term with regard to VIX indexes?

    I understand the difference between the regular and the 2x ones.

    Some of them are not what I expect.

    For example, here is a chart comparing VXX with XXV, which I would expect to be exact opposites of each other, yet they are obviously not:


    Even two VIX ETFs that have the same description, such as TVIX and VIXY (both are 2x short term) are not even:


    What's going on? Why is there so much difference between products with identical descriptions?
  2. Some very good info from this website:


    Right hand side has some good articles under "Educational Posts."

    Sure there is more if you search the website.