Skip to Content
scroll

iPath S&P500 VIX Short-term Futures ETF (VXX US) $US21.67

We have mentioned and invested in the VXX ETF previously, it’s a US traded ETF with a $800mn market cap which rallies when market uncertainty / fear goes up and vice versa, or in other words it performs the best when stocks fall sharply but as we can see today when stocks are calm, even if they are well below previous highs, the VXX falls away. Hence to utilise the VXX successfully we believe a slightly different approach is required:

  • MM believes the VXX should be bought in periods of relative calm and held almost like a trap awaiting the next period of uncertainty.

The fact that the VIX is drifting lower while US stocks chop around near their 6-month lows increases our confidence towards our short-term positive view i.e. the professional traders are no longer chasing downside protection.

MM likes the VXX ETF under the 20 area
Add To Hit List
chart
image description
iPath S&P500 VIX Short-term Futures ETF (VXX US)
Back to top