VIX-Linked ETPs See Big Volume Increase As Equities Pull Back (VXX)

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November 14, 2017 12:18pm NYSE:VXX

Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today looks at continued outflows out of large cap and small cap equities, and rising volatility with corresponding volume upticks in VIX-linked products.

We have been speaking of outflows in Large Caps via SPY redemptions since November began, and the same can be said in terms of Small-Caps with IWM (Russell 2000) seeing outflows of $1.5 billion. These flows seem to be well-timed ahead of today’s sell-off in global equities, and we once again see the SPX trading as low as 2566.56 again this morning, which is the handle it challenged four trading sessions ago before recovering notably.

The VIX has a $12 handle this morning, and if it holds these levels it would be the highest close in the volatility index since mid-September. Likewise, Volatility linked products have been trading heavier than average volume lately, such as VXX, UVXY, TVIX, and so on.

The iPath S&P 500 VIX Short Term Futures TM ETN (VXX) was trading at $35.40 per share on Tuesday morning, up $0.50 (+1.43%). Year-to-date, VXX has declined -65.31%, versus a 16.36% rise in the benchmark S&P 500 index during the same period.

VXX currently has an ETF Daily News SMART Grade of F (Strong Sell), and is ranked #7 of 12 ETFs in the 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 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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