Volatility ETFs

What VIX ETFs and ETNs track

The VIX index measures the volatility that options traders expect in the S&P 500 over the next 30 days. The VIX itself cannot be bought, so products such as VXX and UVXY hold VIX futures instead, through the S&P 500 VIX Short-Term Futures Index, which keeps a rolling position in the first- and second-month futures contracts.

Why they tend to lose value over time

In calm markets VIX futures usually trade above the spot VIX, and later contracts usually trade above nearer ones. Each day the index sells part of the nearer contract and buys the later one, and when the later contract costs more, that roll loses value. This is why VIX futures products have historically lost much of their value over long periods, even though they can jump sharply when stocks fall and fear spikes.

VXX: an exchange-traded note

VXX is an ETN issued by Barclays Bank. An ETN is an unsecured debt obligation: it does not own the futures, and holders depend on Barclays being able to pay, which is known as issuer credit risk. Where our sources agreed, its expense ratio is 0.89% a year.

UVXY: 1.5× daily leverage

UVXY targets 1.5 times the daily move of the same futures index and resets that target every day. That adds the compounding effect of daily leverage on top of the roll cost, so over long periods its losses can be larger than those of an unleveraged VIX product. We do not show an expense ratio for UVXY because our sources disagreed.

Reading this page

The table and heat map show each product's latest price and today's change from Yahoo Finance's regular US session; quotes may be delayed. On big market days VIX products often move in the opposite direction to the S&P 500, so comparing them with the index ETFs shows how markets are pricing risk. Because both products roll or reset every day, their one-week, one-month and one-year returns can look very different from the change in the VIX index over the same period.