ETF 'Vol-mageddon': Lessons Learned for Investors

ETF 'Vol-mageddon': Lessons Learned for Investors

Assessment

Interactive Video

Business

University

Hard

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The video discusses the aftermath of the VIX spike in early February, which marked the peak of VIX ETP mania. It highlights the significant drop in volume, particularly in inverse VIX ETPs like XIV and SVXY, and the market's reaction to these changes. The video also covers the performance of long volatility trades and the future of VXX as it approaches maturity. Additionally, it addresses the challenges of transferring liquidity in ETPs, using examples like UWTI to illustrate the difficulties in maintaining trading volume.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the significance of the SVXY in the context of VIX ETPs?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the implications of VXX ceasing to exist for the market?

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