VXZ Profile
iPath S&P 500 VIX Mid-Term Futures ETN (VXZ) is an exchange-traded note issued by Barclays Bank PLC. It tracks the S&P 500 VIX Mid-Term Futures Index, which reflects the performance of futures contracts on the CBOE Volatility Index (VIX). The VIX measures the market's expectation of volatility over the next 30 days, and the VXZ ETN provides investors with exposure to this volatility.
The VXZ ETN is designed to provide investors with exposure to the VIX through futures contracts that expire in 5 to 6 months. This means that the VXZ ETN may be more suitable for investors who have a longer-term view on volatility compared to the iPath S&P 500 VIX Short-Term Futures ETN (VXX), which tracks futures contracts that expire within one month.
It is important to note that the VXZ ETN is not the same as owning shares in the VIX, and the performance of the ETN may not perfectly track the VIX. Additionally, because the VXZ ETN is an ETN, it has counterparty risk associated with Barclays Bank PLC, which means that if Barclays were to become insolvent or otherwise fail to perform its obligations, investors in the VXZ ETN may lose some or all of their investment.
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