As a leveraged fund, the ProShares Ultra VIX Short-Term Futures ETF (UVXY) seeks daily investment results that are one and one-half times (1.5x) the daily performance of the S&P 500 VIX Short-Term Futures Index, which tracks a portfolio of monthly VIX futures contracts. It’s a play on U.S. stock market volatility.

As a leverage ETF, UVXY is designed to help investors profit from increases in the expected volatility of the S&P 500 while also reducing their portfolio risk, since changes in the VIX Short-Term Futures Index have historically been negatively correlated to S&P 500 returns.

UVXY’s expense ratio is 0.95% and it has about $584 million in assets under management. 

Rationale 

The most direct way to gain exposure to the UVXY approach to the short-term VIX is to buy its listed shares. But there are a number of good reasons for investors to reconsider that. UVXY gas underperformed broadly since inception in 2011, amid a fairly steady growth period for the overall U.S. equities market. This mirrors the trend in the VIX overall. Rather than buying UVXY shares themselves, investors interested in gaining exposure to both short- and mid-term protection that’s tied to the VIX might consider buying funds that provide exposure to similar VIX positions. 

Investing in UVXY

A search on Magnifi suggests that investors can gain access to the VIX via a number of different funds and other ETFs, including those shown below. 

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