What Happened To TVIX Today?

Discussion in 'ETFs' started by AAAintheBeltway, Mar 22, 2012.

  1. Vix up about 8%, VIX futures up 5%, TVIX down 27%.
  2. Now you know why they call them velocityshares even though they're notes, lol.
  3. Couldn't they at least get the direction right?
  4. closest are VXX and UVXY

    both are up.

    What gives?

  5. Wondered about this all day long, have not been able to find a logical explanation yet.
  6. Would it be too simplistic to suggest....."massive tracking error"? :confused: :p :( :D :p :cool: :mad: :eek: :confused:
  7. Now that would be nasty
  8. Suisse will no longer issue shares and the NAV is around 7.50.
  9. fjpenney


    DR Barton advised against trading TVIX only a few days ago.


    <i>This is particularly true when strange upsets happen. Just fourteen months after its inception, one volatility fund (TVIX) became so popular that it was trading more than 20 million shares a day. Its rapid growth made keeping up with the risk management parameters increasingly more challenging for its issuer. When the issuer could no longer maintain those parameters, it halted the creation of new shares—essentially turning it into a closed-end fund. That action changed the very nature of the instrument, but many people unwittingly continue to trade this “volatility” fund thinking that it still tracks the VIX. It doesn't anymore.

    We’ll dig more into the details of this unusual occurrence next week. Until then, a word to the wise: Be sure to avoid trading TVIX. It isn’t what you think! Caveat emptor.</i>
  10. t0pd0g


    WOW....he hit the nail on the head with that warning...pretty impressive.

    #10     Mar 22, 2012