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  • The failure of VIX ETNs to track their benchmarks threatens to kill investor interest in the products - not good for CBOE Holdings (CBOE), says Well's Chris Harris. The exchange has benefited from a surge in VIX futures trading - up 233% Y/Y (!) - setting it up for disappointment if the retail investor moves on to something else.  [View news story]
    They do exactly what they are intended to do...a bit of slippage because of trading spreads I assume, but the decay issues are no different hat if you tried to trade the futures directly. Take a look at what append to VXX during the Budget Ceiling Failure, there was a nice roll yield because of backwardatioin. But retail investors think this is a free lunch, just hold until volatility spikes, insurance cost money, you have to pay to play.
    Dec 3, 2012. 05:56 PM | 2 Likes Like |Link to Comment
  • 3 ETFs To Watch This Week: TVIX, UUP, XRT  [View article]
    TVIX Still at a premium, but just lost 30% today, wow, and everybody was suprised...has another 20% to go to get in line with its indicative value.
    Mar 22, 2012. 04:35 PM | Likes Like |Link to Comment
  • 3 ETFs To Watch This Week: TVIX, UUP, XRT  [View article]
    Yes TVIX is essentially disconnected and trading way above NAV, eventually it will be back in line, could take a while, but the NAV is under 10 and it is trading over 15...why hold? TVIX has also shown no traction when volatility goes up compared to UVXY...volume decreaseing, they cold end it and you get NAV, stay away from TVIX!
    Mar 19, 2012. 04:52 PM | Likes Like |Link to Comment