Investors Somehow Still Buying Struggling VIX-Linked ETFs (UVXY)

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September 25, 2017 11:16am 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 continued interest in small cap equities, along with big struggles performance-wise for volatility-linked ETPs.


With many Large-Cap High Beta names struggling today, we are still seeing a strong follow through in the U.S. Small-Cap equity space from last week. IWM (iShares Russell 2000) is again trading at a new all-time high at the moment and we mentioned that the fund has been the recipient of at least $1.5 billion in new assets via creation lately.

Long Volatility ETPs continue to stagger, with the VXX (iPath S&P 500 VIX Short-Term Futures ETN) for example threatening to create a new all-time low (a level that was reached just six trading sessions ago). UVXY (ProShares Ultra VIX Short-Term Futures ETF) is in the same situation today, even though the VIX itself is actually up substantially and pivoting around $10 again.

Since the beginning of September and on challenging performance, VXX has pulled in about $185 million in new assets while UVXY has attracted a more substantial $300 million via creation flows, despite incredibly weak performance.

The ProShares Trust Ultra VIX Short Term Futures ETF (UVXY) was trading at $23.29 per share on Monday morning, up $0.42 (+1.84%). Year-to-date, UVXY has declined -86.69%, versus a 12.31% 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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