I want to apologize again for missing that the
iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX)
had already announced a 1:4 split. Consider yourself lucky, though. If I
hadn't missed it, I would have poked fun at the VXX in about 12
separate posts. Now, instead, I feel remorseful. All I'll really add is
that now that the split -- effective this Friday -- is done, like
every other split ever, it adds no "value," it just alters the optics.
As of Friday, the "new" VXX will have a split-adjusted original price of
$6,400. So, I suppose the hope is that no one remembers that factoid.
The world, in general, always seems to want to time the next big volatility pop. On Friday, Brendan Conway's "
Focus on Funds" took the opposite angle and focused on a couple of our favorite exchange-traded… Well…
Two of the ETTs ("exchange-traded thingamabobs") offering what amounts to an "anti-volatility" bet are
ProShares Short VIX Short-Term Futures ETF (SVXY) and
VelocityShares Daily Inverse VIX Short-Term ETN (XIV). SVXY soared 150% in 2012 and it's up 73% this year. XIV's numbers are similar.
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