VIXY

📎 Investment Objective

The ProShares VIX Short-Term Futures ETF (VIXY) seeks to provide exposure to the VIX index, which measures expected volatility in the S&P 500 index. The fund aims to track the performance of VIX futures contracts with a short-term maturity.

✨ Key Features

• Provides exposure to expected volatility in the S&P 500 through VIX futures contracts
• Tracks the S&P 500 VIX Short-Term Futures Index, which reflects the returns from holding a portfolio of VIX futures
• Aims to provide a way for investors to hedge against market volatility or speculate on changes in expected volatility
• Utilizes a futures-based strategy, which can result in performance that differs from the spot VIX index

⚠️ Primary Risks

• Volatility risk: The fund's performance is tied to the volatility of the VIX index, which can be highly volatile and unpredictable
• Futures risk: As a futures-based fund, VIXY is subject to the risks associated with the futures market, including contango and backwardation
• Tracking error risk: The fund may not perfectly track the performance of the underlying index due to various factors
• Liquidity risk: The VIX futures market can be less liquid than other futures markets, which may impact the fund's ability to execute trades

👤 Best For

VIXY may be suitable for investors seeking exposure to market volatility as a hedging or speculative tool, but it is a highly specialized and complex fund that requires a thorough understanding of the risks involved. It is not recommended for long-term, buy-and-hold investors and is best suited for experienced traders and investors with a high risk tolerance.