Michael Schmanske doesn’t blame creative or contrived innovation for the financial markets’ extreme, multi-session volatility. He blames ignorance. “Some of these [market-levered products] should have ...
The iPath Series B S&P 500 VIX Short-Term Futures ETN is an inefficient hedge against market volatility due to concerns involving tracking error, negative roll yield, and timing difficulties.
VXX and UVXY are long volatility ETPs using VIX futures for convex payoff in the event of a market crash. VIX is at 24 following a dramatic spike to 60. Both ETPs have had huge rallies, but the rally ...