4 min readBy Ron Koren ETF Insider
VXX VS VIX: A Comparison of ETFs
VXX and VIX are distinct ETFs that cater to investors interested in volatility as an asset class. ETF Insider provides a comprehensive tool to explore these.
The issuer of the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) is known for providing investors with exposure to market volatility through exchange-traded notes. This issuer offers a unique investment approach by tracking the S&P 500 VIX Short-Term Futures Index, which measures the market's expectation of future volatility. The issuer's focus on VIX futures demonstrates its commitment to providing investors with tools to navigate and potentially profit from market fluctuations.
The issuer of the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) focuses primarily on providing investors exposure to volatility rather than dividends. As such, the VXX ETN does not typically offer regular dividend distributions. Instead, its performance is tied to the CBOE Volatility Index (VIX), which tracks the market's expectation of near-term volatility. Investors in VXX may benefit from potential capital gains during periods of market turbulence but should not expect regular dividend income.
The iPath Series B S&P 500 VIX Short-Term Futures ETN, commonly known as VXX, tracks the performance of the S&P 500 VIX Short-Term Futures Index. VXX achieves this by investing in short-term VIX futures contracts, aiming to replicate the volatility of the S&P 500 index. This ETF is designed for investors looking to gain exposure to market volatility, as it tends to rise when there is increased uncertainty and falls during calmer market conditions. VXX is often used as a hedging tool or a speculative play by traders and investors anticipating market turbulence.
Understanding the correlation dynamics of the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) is essential for investors looking to gauge its performance in relation to market volatility. VXX is designed to track short-term VIX futures contracts, making it inversely correlated with the broader equity markets. This inverse correlation makes VXX a valuable tool for hedging and managing risk in portfolios during periods of market turmoil. ETF Insider's web app offers comprehensive insights into VXX's correlations with various assets and sectors, aiding investors in making informed decisions and highlighting the overlaps that can impact their investment strategies.
The iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) is primarily associated with the volatility sector. This ETF tracks the performance of short-term futures contracts linked to the CBOE Volatility Index (VIX). Investors often turn to VXX during periods of market uncertainty or when they anticipate increased market volatility. It can serve as a hedge against equity market downturns, making it a valuable tool for risk management within a diversified portfolio.
The exposure profile of the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) centers around providing investors with a vehicle to access volatility in the U.S. equity markets. VXX tracks the S&P 500 VIX Short-Term Futures Index, offering exposure to short-term VIX futures contracts. This focus allows investors to potentially profit from market volatility and is often used as a hedging tool or for tactical trading strategies.
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4 min readVXX and VIX are distinct ETFs that cater to investors interested in volatility as an asset class. ETF Insider provides a comprehensive tool to explore these.
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3 min readHere we'll explore key aspects including tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
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