David Gille attempts to explain the collapse in the 2X VIX ETN (TVIX -27.6%) even as the VIX ETF...

|By:, SA News Editor

David Gille attempts to explain the collapse in the 2X VIX ETN (TVIX -27.6%) even as the VIX ETF (VXX +2.7%) surges. Unlike ETFs, an ETN in certain instances can have little correlation to the index it is tracking, so selling/buying can drive it far from underlying value. The TVIX premium to NAV got far too high, and now is correcting.