Friday, February 17, 2012

TVIX Topples VXX as Highest Volume VIX ETP

With just a few minutes before the close, it is now almost certain that TVIX (VelocityShares Daily 2x VIX Short-Term ETN) is going to dethrone VXX as the most heavily traded VIX exchange-traded product (ETP), with TVIX trading 29 million shares and VXX at 25 million.

VXX, which just celebrated its third birthday at the end of January has reigned supreme in volume and assets since the first week it was launched. TVIX has a long way to go before it matches VXX in terms of assets, but the gap is narrowing quickly.

Based on some questions I have received from retail investors, it seems as if many who are new to the TVIX party do not understand the nuances or even the basics of this product – so it looks like another round of education is in order.

For the record, not only has TVIX dethroned VXX, but VelocityShares has also overtaken Barclays/iPath as the #1 provider of VIX-based ETPs in terms of volume. It will be interesting to see how Barclays addresses this in terms of future products.

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Disclosure(s): short VXX and TVIX at time of writing

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