Leveraged Volatility ETFs Plunge To New All-Time Lows (UVXY)

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September 12, 2017 12:45pm NYSE:UVXY

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Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today points out big money flowing back into major equity funds on the recent rally, and continued pain for volatility-linked ETPs amid a sharp downturn in the VIX.


On the renewed rise in equities, we have seen assets pile back into SPY, with nearly $5 billion entering the fund via creation flows, as the SPX itself is presently trading at another new all-time high on Tuesday, reaching a 2495 handle briefly.

After a prolonged period of very light inflows and outflows in the marketplace for weeks through much of August, we have seen larger inflows followed by outflows after a move higher, and now inflows again in the $4 to $6 billion range in SPY for the past couple weeks.

As we mentioned yesterday, Long Volatility products continue to swoon, with VXX down an additional 1% today after yesterday’s loss of about 5%, while levered UVXY (ProShares Ultra VIX Short-Term Futures ETF) is trading at a new all-time low today, and seems to be under heavy pressure.

The ProShares Trust Ultra VIX Short Term Futures ETF (NYSE:UVXY) was trading at $27.50 per share on Tuesday afternoon, down $0.71 (-2.52%). Year-to-date, UVXY has declined -84.29%, versus a 12.79% rise in the benchmark S&P 500 index during the same period.

UVXY currently has an ETF Daily News SMART Grade of F (Strong Sell), and is ranked #2 of 3 ETFs in the Leveraged Volatility ETFs category.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.


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