Do Volatility ETFs Do Their Job? (VXX, CVOL, TVIX, VIXY)

Are ETFs systematically buying most VIX futures and should investors stay away? Matt Hougan, ETF Analytics president, weighs in. According to Matt, “They are terrible products as an asset class. You think about (NYSEArca:VXX), the first one launched two years ago, it’s down 94%. That’s not good for anyone. The big problem is this is a tiny niche market that these ETFs and ETNs have exploited so that they own the entire market. They are not just the tail wagging the dog, they’re the whole dog here.”

See the full interview below:

Related ETFs: (NYSEArca:VXX), (NYSEArca:CVOL), (NYSEArca:TVIX), (NYSEArca:VIXY)

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