Risky Volatility Funds Set to Make a Comeback

Discussion in 'Wall St. News' started by Arnie, Oct 10, 2021.

  1. Arnie


    It's behind a paywall

    Two new ETFs that offer leveraged or inverse bets on the VIX set to debut, despite criticism that they are too risky
    Trading in the VIX pit at Cboe Global Markets in Chicago in 2018. Two new ETFs that let investors make leveraged bets on the VIX have been cleared for launch by the SEC.
    By and
    Oct. 10, 2021 8:03 am ET

    Funds that track stock-market volatility are making a comeback, despite concerns they are too complicated for some investors.

    Two new exchange-traded funds that let investors make leveraged or inverse bets on a popular barometer of market fluctuations are set to start trading later this fall. Similar products devastated investors in a high-profile blowup less than four years ago.
    KCalhoun likes this.
  2. newwurldmn


    It’s like the matrix. The markets keep rebooting.
    6wives likes this.
  3. JSOP


    People need to hedge!!
  4. KCalhoun


    Finally.... thx. Something besides UVXY VXX SVXY

    Tickers? Launch date?
  5. Girija


    SVIX has been approved around Sept lastyear but not trading yet. Not sure about the other one.
  6. maxinger


    What strange news.

    what do they mean by risky?
    Is it

    - if you try to trade it, the success rate is going to be very poor

    - liquidity is going to be very poor. you are going to have a problem
    trying to close your position

    - its price movement is going to be very choppy / erratic / chaotic.
    but if this is the case, traders will avoid trading it and hence there is zero risk.

    - manipulators will manipulate the price.
    But then, manipulators are creating trading opportunities and hence there is low risk if you know how to trade
    Raheel Shaikh and KCalhoun like this.
  7. KCalhoun


    Good point.

    Only things that make it risky, low odds would be light volume/wide spreads, or too-small range. Other than that, lemme at it.

    Especially if VIX > 20
    maxinger likes this.
  8. As far as I understand it - and this is supported by very similar terms being used about crypto - it means "clueless morons will lose their money even faster if they trade these products".
  9. nitrene


    Bring back the TVIX or even better we need a +-3X VIX ETF.
    Also I wish Direxion would go back to 3X for their stock ETFs.
    KCalhoun likes this.
  10. KCalhoun


    I miss TVIX like a great ex-girlfriend. I trade too much lol
    #10     Oct 11, 2021