It's time to consider VIX Funds again?
Only other times it has seen moves from 65 back to 30: (a) 2009 after the Financial Crisis low, and (b) 2020 after the COVID low. 2024 case TBD. S&P 500 shown bottom panel.
ETFs that place bets on severe stock-market swings are coming back into vogue — delivering big gains and losses during this week’s rapid downturn and recovery.
The ProShares Short VIX Short-Term Futures ETF ( $SVXY.US$ ) — which effectively bets on a return of stock-market calm — drew in $233 million as equities tumbled on Monday, the biggest influx since a tumultuous 2018 period known as Volmageddon, data compiled by Bloomberg show. Its shares tumbled over 21% during the selloff, only to bounce back 10% by Tuesday afternoon. The rival 1x Short VIX Futures ETF ( $SVIX.US$ ) tumbled 39% during the rout the most since its 2022 inception and surged 15% on Tuesday.
Those on the other side of the trade fared far better. The 2x Long VIX Futures ETF ( $UVIX.US$ ), which looks to double the performance of a long-VIX index, saw record trading volume Monday as it surged 84%, the biggest gain since it was started in 2022. The ProShares Ultra VIX Short-Term Futures ETF ( $UVXY.US$ ), which jumped 58%, saw its second-highest trading volume ever.
The rising interest in the funds reflects the growing anxiety about whether the stock market is headed into another sustained downturn or on a brief bull-market dip.
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Deep Value Kitty : But you cant trade this index right?