VXX VS ZIV: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) have transformed the investment landscape, providing investors with diversified exposure across a wide range of sectors and asset classes. In this article, we will conduct a comprehensive comparison between two notable ETFs: VXX (iPath Series B S&P 500® VIX Short-Term Futures™ ETN) and ZIV (VelocityShares Daily Inverse VIX Medium-Term ETN). Throughout this analysis, we'll explore key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking methods, and exposure profiles.

VXX VS ZIV: Overview

VXX and ZIV represent distinct strategies within the realm of volatility trading. While VXX is designed to track the S&P 500 VIX Short-Term Futures Index, which measures market volatility expectations in the short term, ZIV takes an inverse approach by offering exposure to the inverse of the same index over a medium-term horizon. These contrasting strategies result in differing risk and return profiles, a point we will delve into in the subsequent sections.

VXX VS ZIV: Sectors and Top Holdings

VXX primarily focuses on the volatility of the S&P 500 index, and its holdings consist of VIX futures contracts. In contrast, ZIV aims to capitalize on the inverse of the same index's volatility, allowing investors to potentially profit during periods of lower volatility. Understanding the sectors these ETFs target and their top holdings can provide valuable insights into their potential behavior during market fluctuations.

VXX overlap VXX VS ZIV: A Comprehensive Comparison of ETFs

VXX VS ZIV: Capitalization and Strategy

VXX and ZIV differ in terms of their asset under management (AUM) and strategies. VXX often experiences significant changes in its AUM as investors react to market sentiment shifts. ZIV, on the other hand, targets medium-term inverse exposure to volatility, which can lead to different AUM dynamics. These distinctions highlight the importance of understanding an ETF's strategy and its implications for potential returns and risks.

VXX VS ZIV: Tracking Methods and Exposure

VXX tracks the performance of the S&P 500 VIX Short-Term Futures Index, aiming to provide investors with exposure to short-term volatility movements. In contrast, ZIV aims to provide the inverse of the same index's performance over a medium-term horizon. Both ETFs use futures contracts as their primary tracking instruments. Investors seeking to capitalize on market volatility or hedge against it should carefully consider the tracking methods and exposure provided by these ETFs.

Conclusion

VXX and ZIV offer investors distinct ways to approach volatility trading, catering to those who want to either embrace or hedge against market uncertainty. To gain deeper insights into their holdings, correlations, overlaps, and other critical information, ETF Insider provides a valuable resource. This user-friendly app empowers investors with extensive details about these and other financial instruments, aiding in informed decision-making.

Disclaimer: This article does not offer investment advisory services. Investors should conduct thorough research and consider their risk tolerance before making any investment decisions.

Sources:

iPath Series B S&P 500® VIX Short-Term Futures™ ETN (VXX) Fact Sheet
VelocityShares Daily Inverse VIX Medium-Term ETN (ZIV) Fact Sheet

VXX ETF issuer
VXX ETF official page

VXX quote and analysis

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