Volatility shocks are much more pronounced in shorter-term options than longer-dated contracts. This reflects the observed ...
VIX ETFs are designed for short-term tactical use, rather than buy-and-hold investing. Volatility funds reset daily and are exposed to contango, meaning their returns deviate substantially from ...
However, VIXY's value tends to decay over time due to the contango effect in VIX futures, making it more suitable for short-term trades rather than long-term holdings. Investors should be aware ...
The Simplify Volatility Premium ETF trades at a 15.25% yield by selling short-term VIX futures, benefiting from contango but vulnerable during backwardation. SVOL employs tail hedging and invests ...