VXX and VXZ Celebrate Fourth Birthday

From VIX and More
January 31, 2013 - 2:42am

What better way to celebrate your birthday than by ripping off a huge gain. That’s what VXX must have been thinking today as it gained 6.2%, while it’s often overlooked sibling, VXZ, gained 2.2%. Of course, the last four years have not been kind to these VIX exchange-traded products in the aggregate, but for selected periods, they have been remarkable performers. Just ask anyone who was short VXX when it spiked 198% during a period from July to October of 2011. In spite of that impressive short-term performance, both VXX and VXZ have lost ground in each of the four years since their launch. To be fair, though, so did the VIX, if one measures each ‘performance year’ from January 30th. The table below shows the performance of VXX, VXZ, the VIX and SPY during each of those January 30th performance years. When one considers that in each of those yearly measurement periods the SPY ...


Share this article »  

Continue reading this article »