Why is there systematic negative divergence between the VIX index and the VXX ETF meant to track it?
http://finance.yahoo.com/q/bc?s=%5EVIX&t=5y&l=on&z=l&q=l&c=vxx
Why is there systematic negative divergence between the VIX index and the VXX ETF meant to track it?
http://finance.yahoo.com/q/bc?s=%5EVIX&t=5y&l=on&z=l&q=l&c=vxx
Because VXX is not designed to track the spot VIX. http://blogs.cfainstitute.org/insideinvesting/2014/02/12/doing-what-it-says-on-the-tin-the-value-of-volatility-etps/