New Volatility ETFs: VXUP & VXDN

By Lawrence G. McMillan

There has been a rather large amount of hoopla about two new companion ETF’s that are designed to track the cash levels of $VIX – the CBOE’s Volatility Index.  There have been articles on Bloomberg, Seeking Alpha, Barron’s, and Yahoo! Finance, not to mention the web sites of the principal’s involved: NASDAQ and Accushares.  Part of the reason for this large coverage is that the person who designed the original $VIX, in 1994, is an advisor at Accushares, the creator of these new products.  That person would be Professor Robert Whaley – originally at Duke University (when $VIX was created) and now at Vanderbilt.  Professor Whaley just recently was awarded the prestigious Sullivan Award for 2015, honoring his contributions to listed options trading.

Accushares, has floated two new ETF’s: VXUP (which seeks to track $VIX), and VXDN (which is the inverse of VXUP and thus seeks to track the inverse performance of $VIX)...

Read the full article (published on 5/29/15) and get all of the trading recommendations by subscribing to The Option Strategist Newsletter today. Introductory 3 month trial subscriptions are available for only $29.