A little over four years since 2018’s Volmageddon, and 2 years after TVIX got terminated – two new VIX ETF’s were recently launched – the 1x short VIX exposure SVIX and 2x long VIX exposure UVIX by VelocityShares. What’s different about them, how do they protect against another Feb of 2018 event. We’re going straight to the source(s) to answer those questions and more; chatting up three musketeers of VIX expertise: Stuart Barton CIO of VolatilityShares, Jim Carroll of the @Vixologist Twitter handle, and Six Figure Investing blog writer Vance Harwood. They join us to talk through just what is innovative about this new approach, and why such innovation was necessary.
This all-star trio talks us through the plumbing behind these new VIX products (including their new index construction/design, rebalancing methodology, and VIX vs.VIX futures), why all levered ETFs suffer from Volatility drag, why futures based ETFs suffer from Contango, and what can be done about those two issues, knowing the difference between ETPs, ETNs & ETFs, what’s in store for volatility the rest of the year, and everything else having to do with VIX futures. Plus, we get an interesting insight into their hottest takes!
Chapters:
00:00-01:28 = Intro
01:29-21:08 = The newly launched UVIX and SVIX – a new (better?) way to Rebalance Daily
21:09-33:21 = The Negative effects of Volatility drag & Leveraged ETFs
33:21-46:17 = The alphabet soup that is ETPs, ETNs & ETFs
46:18-01:01:59 = Benefitting from Volatility drag & the Gamma phenomenon
01:02:00-01:05:16 = Future of Volatility?
01:05:16-01:12:52 = Hottest Takes
From the Episode:
Check out The Derivate podcast episode: $TVIX gets Terminated – What^%$#
Toroso Advisors | Six Figure investing Blog | Volatility Shares
Follow along with the guys on Twitter: Jim Carroll @vixologist Vance Harwood @6_Figure_Invest and Stuart Barton @VolatilityStu
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