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John, then what is the difference between the VIX and VIXY if...

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thorburn

10,404 Posts.

14/08/14

11:05

Post #: 13815882
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Originally posted by john risk ↑

"Also john risk, VIXY reflects short term futures (of the VIX I take it). Is that in itself leverage? "

Thorburn

Well my take on it is that the VIXY is an ETF of the VIX, so it is a non leveraged derivative of the VIX.
TVIX is an ETF that uses other derivatives within the ETF structure to magnify any potential positive or negative movements on the VIX by a factor of 2.

So my response would be no the VIXY is not leveraged.

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John, then what is the difference between the VIX and VIXY if there is no leverage advantage? VIXY holds/trades short term futures contracts so wouldn't that provide some form of magnification of the VIX's movement?

UVXY is ultra short futures. TVIX is leveraged by 2.

Perhaps all VIX etfs are leveraged. VIX in itself is a wild indices
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