UVXY | ProShares Ultra VIX Short-Term Futures ETF Overview | MarketWatch (2024)

FAQs

What is ProShares Ultra Vix short-term futures? ›

ProShares Ultra VIX Short-Term Futures ETF provides leveraged exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration.

The iPath S&P 500 VIX Short-Term Futures (VXX) is an exchange-traded note (ETN) designed to provide investors with exposure to equity market volatility. Shares of an ETN, which is structured as a debt instrument, can be bought and sold like shares of stock.

You can hold UVXY for any time period, including overnight. However, holding UVXY for long periods of time is not advised due to contango.

UVXY Signals & Forecast

On further gains, the ETF will meet resistance from the short-term Moving Average at approximately $25.59. On a fall, the ETF will find some support from the long-term average at approximately $23.62.

An Ultra Short Term Mutual Fund is like a safe place where you can put your money for a short time, typically less than 3 months (usually 91 days or less). It's for people who want to invest without taking much risk.

UVXY VS VIX: Overview

UVXY is designed to provide double the daily performance of an index tracking short-term volatility futures, while VIX is an index that reflects market expectations of near-term volatility conveyed by S&P 500 stock index option prices.

The primary way to trade the VIX is to buy exchange-traded funds (ETFs) and exchange-traded notes (ETNs) tied to the VIX itself. ETFs and ETNs related to the VIX include the iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and the ProShares Short VIX Short-Term Futures ETF (SVXY).

Going short on the VIX

You might decide to short volatility with the expectation that the stock market will keep rising and volatility will remain low. If the S&P 500 does rise, then the VIX is likely to move to a lower level, and you could take a profit.

Over time, because of contango loss and time decay, UVXY persistently and consistently goes down in price. It is because of this UVXY is not designed for long-term traders.

UVXY is leveraged at 1.5x, which means that it will produce returns that are 1.5 times that of the underlying index. For example, if the VIX Short-Term Futures Index gains 20%, UVXY will gain 30%. Of course, this works both ways. If the underlying drops 20%, UVXY will drop 30%.

Does UVXY pay dividends? ›

UVXY does not currently pay dividends. How many shares outstanding does UVXY have?

UVIX seeks investment results, before fees and expenses, that correspond to twice the daily percentage moves of the LONGVOL Index*. For example, if LONGVOL goes up 10% in one day, the goal for UVIX is to go up 20% that day. UVIX differs from existing and previous VIX-linked ETFs in at least two important ways.

UVIX is an ETF which trades like a stock. It can be bought or sold whenever the market is open, as well as during pre-market and after-market periods. With an average bid/ask spread of a penny, and notional average daily volume in the millions, UVIX offers considerable liquidity.

ProShares Short S&P500 seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the S&P 500®.

Fund Performance: The PGIM India Ultra Short Duration Fund has given 5.99% annualized returns in the past three years and 6.52% in the last 5 years. The PGIM India Ultra Short Duration Fund comes under the Debt category of PGIM India Mutual Funds.

Ultra-short bond funds give investors more significant protection against interest rate risk than longer-term bond investments. Since these funds have very low durations, increases in the rate of interest will affect their value less than a medium- or long-term bond fund.

Introduced in 2004 on Cboe Futures Exchange℠ (CFE^®), VIX futures provide market participants with the ability to trade a liquid volatility product based on the VIX Index methodology. VIX futures reflect the market's estimate of the value of the VIX Index on various expiration dates in the future.