The Derivative

What’s New about the New -1x/+2x VIX ETFs SVIX and UVIX, w/ Stuart Barton, Jim Carroll & Vance Harwood


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A little over four years since 2018’s Volmageddon, and 2 years after TVIX got terminated – two new VIX ETF’s were recently launched – the 1x short VIX exposure SVIX and 2x long VIX exposure UVIX by VelocityShares. What’s different about them, how do they protect against another Feb of 2018 event. We’re going straight to the source(s) to answer those questions and more; chatting up three musketeers of VIX expertise: Stuart Barton CIO of VolatilityShares, Jim Carroll of the @Vixologist Twitter handle, and Six Figure Investing blog writer Vance Harwood. They join us to talk through just what is innovative about this new approach, and why such innovation was necessary.

This all-star trio talks us through the plumbing behind these new VIX products (including their new index construction/design, rebalancing methodology, and VIX vs.VIX futures), why all levered ETFs suffer from Volatility drag, why futures based ETFs suffer from Contango, and what can be done about those two issues, knowing the difference between ETPs, ETNs & ETFs, what’s in store for volatility the rest of the year, and everything else having to do with VIX futures. Plus, we get an interesting insight into their hottest takes!

Chapters:

00:00-01:28 = Intro

01:29-21:08 = The newly launched UVIX and SVIX – a new (better?) way to Rebalance Daily

21:09-33:21 = The Negative effects of Volatility drag & Leveraged ETFs

33:21-46:17 = The alphabet soup that is ETPs, ETNs & ETFs

46:18-01:01:59 = Benefitting from Volatility drag & the Gamma phenomenon

01:02:00-01:05:16 = Future of Volatility?

01:05:16-01:12:52 = Hottest Takes


From the Episode:

Check out The Derivate podcast episode: $TVIX gets Terminated – What^%$#   

Toroso Advisors  |  Six Figure investing Blog  |  Volatility Shares  


Follow along with the guys on Twitter: Jim Carroll @vixologist Vance Harwood @6_Figure_Invest and Stuart Barton @VolatilityStu

Don't forget to subscribe to The Derivative, and follow us on Twitter at @rcmAlts and our host Jeff at @AttainCap2, or LinkedIn , and Facebook, and sign-up for our blog digest.

Disclaimer: This podcast is provided for informational purposes only and should not be relied upon as legal, business, or tax advice. All opinions expressed by podcast participants are solely their own opinions and do not necessarily reflect the opinions of RCM Alternatives, their affiliates, or companies featured. Due to industry regulations, participants on this podcast are instructed not to make specific trade recommendations, nor reference past or potential profits. And listeners are reminded that managed futures, commodity trading, and other alternative investments are complex and carry a risk of substantial losses. As such, they are not suitable for all investors. For more information, visit www.rcmalternatives.com/disclaimer


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The DerivativeBy RCM Alternatives

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