Last week, JPMORGAN Chase launched his Inverse vix short -term futures eTns (vydld)It seeks to provide an exposure to the daily return of futures to short -circuiting the index bound to the volatility index (also known as VIX).
The new product is designed to increase by 1% for each point of reducing this experience with futures VIX. In short, investors could benefit from retreating market volatility.
The remarks traded on the stock exchange were out of fashion for a while, said Bryan Armor, director of the research of passive strategies for North America in Morningstar, ETF.com. “In general, ETN has a bloody history for investors because they tend to be used and inverse strategies.”
Part of this history includes inverse VIX ETN, which emerged during “Volmageddon” in 2018 when VIX increased by more than 100% on a single business day, causing inverse Vix ETN to lose more than 90% of its value, Armor said.
However, JPMorgan suggested that the Futures VIX change rather than a percentage change, resulting in lower volatility for ETN and a significantly less risk of succumbing to another “Volmageddon” scenario. According to tingling, this also means less up because positive yields will also be less than a percentage change of futures VIX.
JPMORGAN Chase did not answer immediately at the request of ETF.com for comment.
The markets have experienced unrest recently due to concerns about tariffs and the potential of economic recession.
“In 2025, it is likely that we will see more volatility of our own capital compared to 2024, which was a benign year in terms of volatility,” said Aniket Ullal, Head of ETF Research at CFRA Research, ETF.com. “This launch is probably in response to the expectation that volatility will be higher this year.”
Although the new product expands available products, Ullal said that investors must be aware that revenues for future products may affect the cost of cylinders because the fund is between futures contracts.
Also, many investors may not need this type of exposure.
“In general, VIX is decreasing when the stock market is rising and vice versa,” Armor said. “It relies on this product on changes on points than the percentage change makes it difficult to use as a hedge for some other short exposure. It is safer than the predecessors of short Vaxes, but its cases are limited.”
Permanent reference | © Copyright 2025 Ethf.com. All rights reserved
