SVIX Profile
-1x Short VIX Futures ETF is an exchange-traded fund designed to provide investors with inverse exposure to the performance of VIX futures contracts. Specifically, the fund aims to deliver the daily inverse return of a portfolio composed of first and second month VIX futures contracts. The ETF is structured to benefit from declines in the Volatility Index (VIX), which is commonly used as a measure of market volatility and investor sentiment.
The underlying index that the fund tracks measures the daily inverse performance of the VIX futures portfolio. This portfolio consists of futures contracts that are rolled each day to maintain a consistent time to maturity. By doing so, the fund ensures that it reflects the daily changes in the value of VIX futures with an inverse relationship. The index is recalculated daily at 4:00 p.m. Eastern Time, based on the average price of the futures contracts from 3:45 p.m. to 4:00 p.m. Eastern Time.
The ETF is designed for investors who seek to hedge against or profit from declines in market volatility. It uses VIX futures contracts, which are derivative instruments based on the expected future level of the VIX, to achieve its investment objective. The fund's inverse exposure can be useful for short-term trading strategies and for those looking to manage risk in volatile market conditions.
Managed by a specialized team with expertise in derivatives and volatility products, the -1x Short VIX Futures ETF employs a sophisticated approach to managing its futures contracts and maintaining its inverse exposure. The fund’s strategy involves careful monitoring of futures contracts and daily rebalancing to ensure accurate tracking of the inverse performance of the underlying index. This ETF offers investors a targeted approach to volatility trading, providing a tool for managing market exposure and capitalizing on fluctuations in volatility.
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