ZIVB Profile
The Volatility Shares Trust -1x Short VIX Mid-Term Futures Strategy ETF is an actively managed exchange-traded fund (ETF) that focuses on providing investors with inverse exposure to volatility in the U.S. equity markets. The fund aims to achieve its investment objective by investing primarily in futures contracts tied to the Chicago Board Options Exchange (CBOE) Volatility Index (VIX) and other related financial instruments. This approach is designed to deliver returns that are inversely correlated with the performance of the VIX, which measures market expectations of future volatility.
The ETF utilizes a strategy that involves taking short positions in mid-term VIX futures contracts. These contracts are intended to reflect the performance of the VIX Index over a longer duration than short-term futures, typically spanning several months. By taking short positions, the fund seeks to capitalize on declines in the VIX Index, aiming to provide investors with returns that are the inverse of the changes in volatility. This strategy is particularly relevant for investors looking to hedge against or profit from falling volatility in the market.
The index the fund follows is specifically designed to track the inverse performance of the underlying VIX Index. As such, it provides a hedge for investors who anticipate a decrease in market volatility or who wish to mitigate the impact of volatility on their broader investment portfolios. However, due to the fund's focus on inverse exposure and its reliance on futures contracts, it may experience significant volatility and may not be suitable for all investors.
As a non-diversified fund, the ETF concentrates its investments in a specific segment of the market, which can result in higher levels of risk compared to more broadly diversified funds. Investors should carefully consider their investment objectives, risk tolerance, and the potential impact of volatility on their overall portfolio before investing. The use of futures contracts and the inverse strategy employed by the fund adds layers of complexity and risk that should be fully understood.
|
