Analyst/ETF Trader Paul Weisbruch of Street One Financial brings us his daily fund flows update, which today hones in on massive money flows into a popular short VIX ETF, as traders bet that the recent volatility spike will continue to be beaten back down.
As we mentioned in Monday’s note, some well-timed inflows hit SVXY (ProShares Short VIX Short-Term Futures ETF) recently, and the fund continues to attract assets amidst the plunge in relative volatility levels in the marketplace — not to mention in the VIX itself.
SVXY has reeled in more than $545 million just in the past several sessions, and we have seen the VIX trade from below $10 to as high as $17 inside of just four trading sessions. However, during the past three trading sessions, the VIX has cratered all the way back to an $11 handle and below its 200 day moving average, as the world seems more focused on headlines out of Charlottesville, VA than the looming North Korea situation that dominated the tape not so long ago.
ETF/Index options trading volume is very light these days, and absent of any trend right now in the very short-term, so it appears that shorts in the marketplace are caught in a conundrum.
The ProShares Short VIX Short-Term Futures ETF (NYSE:SVXY) was trading at $81.80 per share on Wednesday morning, up $0.58 (+0.71%). Year-to-date, SVXY has gained 79.82%, versus a 11.64% rise in the benchmark S&P 500 index during the same period.
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.
Paul 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.