Grading the Performance of Volatility-Hedged ETFs

The video discusses volatility hedged ETFs, which aim to provide market exposure while minimizing losses during market downturns. Eric Dulcina from Bloomberg Intelligence explains the mechanics of these ETFs, highlighting the role of VIX futures and options. Specific products like PowerShares and VelocityShares are examined, showing how they performed during a recent market sell-off. The video compares different strategies, such as using VIX call options and long-short VIX futures, to balance downside protection with potential upside.

Can you explain how the PowerShares downside hedged ETF allocates its assets?

What was the performance of volatility hedged ETFs during the market sell-off mentioned?