UVIX Profile
The 2x Long VIX Futures ETF is designed to provide investors with leveraged exposure to the performance of VIX futures contracts. The fund aims to track a theoretical index that measures the daily performance of a portfolio consisting of long positions in the first and second month VIX futures contracts. By investing in these contracts, the fund seeks to reflect anticipated market volatility and amplify returns through leverage.
The index underlying the ETF is managed by rolling its positions daily to maintain a consistent time to maturity for the futures contracts. This process involves selling the near-term VIX futures contracts and purchasing contracts with a longer expiration date. The index’s value is calculated daily at 4:00 p.m. Eastern Time, based on the average price of the VIX futures contracts traded between 3:45 p.m. and 4:00 p.m. Eastern Time, ensuring accurate tracking of the market’s volatility expectations.
Leveraged to deliver twice the daily performance of the VIX futures index, the 2x Long VIX Futures ETF is intended for short-term trading. This leverage can magnify both gains and losses, making the ETF suitable for investors who seek to capitalize on short-term volatility trends or hedge against market fluctuations. The fund’s performance closely aligns with the underlying index, aiming to provide a precise reflection of the daily changes in VIX futures.
The fund emphasizes liquidity and transparency, with a focus on maintaining alignment with the underlying index through disciplined management of its futures positions. The daily roll and rebalancing processes are executed to ensure that the fund's exposure remains consistent with its investment goals. Due to its leveraged nature and daily adjustments, the ETF requires active monitoring to manage risks and volatility effectively.
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