Why VIX ETFs Are So Popular Among Traders

The video tutorial discusses VIX ETFs, highlighting their popularity among traders and their characteristics. It explains the difference between VIX futures and the VIX index, noting the tracking discrepancies. The tutorial also explores investment options for those interested in VIX, including diversified strategies and specific products. Finally, it covers inverse ETFs and strategies for betting against the market, emphasizing the importance of short-term use and risk awareness.

What is a key characteristic of the I Path Short Term VIX Futures ETN?

• It tracks the VIX index directly.

• It has a trading volume similar to Exxon Mobil.

• It is a low-risk investment.

• It is not popular among traders.

Why do VIX futures not perfectly track the VIX index?

• Because they are based on a different market.

• Because futures have a high beta to the index.

• Because they are not traded frequently.

• Because the VIX index is an investable index.

What investment strategy is recommended for conservative investors interested in VIX?

• Diversifying with treasury bonds and international stocks.

• Investing in small-cap stocks.

• Investing solely in VIX ETFs.

• Focusing on high-risk VIX products.

What is a characteristic of the velocity shares tail risk, hedged, large cap ETF?

• It is managed by a company with no experience in volatility.

• It invests 100% in VIX futures.

• It is a high-risk investment.

• It combines large-cap stocks with a VIX futures position.

What is advised when using VIX-related products during market volatility?

• To invest heavily in them.

• To use them only short term and with caution.

• To avoid them completely.

• To use them for long-term investments.