I can imagine how it is possible to hedge out contango (or backwardation) in the Vix futures through calendar spreads at a ratio. If the contango between months 1 and 2 is 10% and the contango between months 2 and 3 is 5%, couldn't we hedge out the contango to zero by going: Month 2: - 1 (+10 % contango) Month 3: + 2 (-10% contango) This should be possible at any given time if we set up the appropriate ratio. But what exposure to the Vix does that provide? Is the above position essentially long the Vix market, or short? If Vix spikes, are we more likely to get a payoff, or take a loss? The CBOE publishes a crude map of Vix futures beta relative to the spot index. http://www.cboe.com/products/vix-index-volatility/vix-options-and-future Looking at this chart, one month out gives a beta of about 50 (which I assume means the futures contract moves by half the amount of the Vix), while two months out the beta is about 40. That means the above spread should be net long, as the net beta would be +30. Of course, the hedge would destabilize with the passing of time and shifting of the term structure, so adjustments to the ratio would have to be made as necessary to maintain neutrality of contango/backwardation. How does that analysis read? I suppose there are two questions: can we indeed hedge away contango, allowing for expression of a Vix outlook irrespective of the term structure; and upon neutralizing the curve, how would the spread perform in response to Vix fluctuations?