SVXY fell from around \$140 to \$9. It has since bounced back 25% to around \$12.

Vix futures went from the 11-14 range to 35 and now back to 17-18.

SVXY holds a short position in Vix futures with an average weighted maturity of 1 month. Why didn't SVXY recoup much more of its lost value when vol dropped sharply after the "volpocalypse"?

I get that the curve was (and is) in backwardation and so SVXY loses some money from that daily (but that should be a tiny amount).

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    $\begingroup$ SVXY now uses reduced leverage to avoid the fate of its cousin bloomberg.com/news/articles/2018-02-27/… $\endgroup$ – noob2 Feb 28 '18 at 17:37
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    $\begingroup$ That's only as of today. $\endgroup$ – trade_the_basis Feb 28 '18 at 21:54
  • $\begingroup$ Have a read through the prospectus. Hint: SVXY's only purpose is to give daily exposure. $\endgroup$ – amdopt Mar 8 '18 at 13:01
  • $\begingroup$ Are you trying to hint that it only tracks performance during market hours and that the majority of the fall in vix futures happened after-hours every day? $\endgroup$ – trade_the_basis Mar 8 '18 at 16:39

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