Another factor to consider is that trading these volatility ETFs is also a currency play as the VIXY and UVXY are in USD. This morning I did a mental addition of the profits on my 3 ETFs and noticed that the unrealised profit in my CFD account is somewhat higher. Subsequently I remembered the currency aspect. I have not been following the AUDUSD closely, but what I do know is that since opening the 3 ETFs on 27-Aug my unrealised profit is 13% higher than it would have been if the AUDUSD had stayed flat.
The US is set to raise interest rates, and probably sooner than indicated a month or so. That is, the 'considerable time' appears to becoming less considerable lately. Consequently, I suspect that the AUDUSD will continue to decline, which is further good news for long ETF trades in USD.
