VIX - down big. SVXY? Up big. UVXY? Also up big.

Discussion in 'ETFs' started by Saltynuts, Feb 7, 2018.

  1. Just another example of weird stuff. UVXY is supposed to move 2x the direction of the VIX, SVXY 1x the inverse of the VIX. So the SVXY move today, looks like it might be reasonable. But why is UVXY also up so much? If it holds the positions it says it does shouldn't it be down big?

  2. newdog


    You need to look at what the holdings are. SVXY is all about contango/backwardation, nothing to do with VIX spot. It is about VIX future curve.
  3. I follow you newdog, but aren't UVXY and SVXY supposed to have essentially the opposite holdings, since they both are meant to capture movements in the same index, only the former twice as much (and in opposite directions)? Its not so much them not tracking the VIX that I'm talking about, its them not tracking EACH other (inversely, taking the 2x/1x into account), as they've done pretty much all their existence before this week so much as I can tell.
  4. mt2rules


    I'm not sure if anyone has told you this yet, but the quotes you are probably looking at are the % values from yesterday's close. The SVXY opened this morning at 12.28 and is now at 12.63 (a 2.9% gain) and the UVXY opened this morning at 18.75 and is now at 17.4 (a 7.2% loss). These ETFs only track their underlying on a daily basis and anything more than that is subject to the path dependency of their respective returns.
    jys78 and cdcaveman like this.