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The Cambria Tail Risk ETF offers downside protection for a stock portfolio via S&P 500 put options and U.S. Treasuries. TAIL outperforms inverse S&P 500 ETFs (SH, SDS) on risk-adjusted returns when used to hedge a core stock portfolio. The mid-term VIX futures ETF delivers superior risk-adjusted returns vs. TAIL but requires monitoring due to VIX futures complexity.
Mott Capital Management's Michael Kramer analyzes market anticipation for 2024 earnings growth and implied volatility levels. He believes that the market's expectation of a 10% earnings growth next year is unlikely due to inflation and margin contraction.
In the last trading session, MGC and VXZ traded with an outsized volume.
As U.S. debt ceiling talks hit a standstill, volatility ETFs may present valuable short-term investment opportunities.
The 2nd & 3rd biggest bank busts in history happened less than a month ago and nobody cares. The Fed and FDIC did a great job with SVB Financial Group and Signature Bank, and that probably reduced moral hazard and protected the economy.
Last week was the worst for Wall Street this year due to the biggest banking crisis since 2008.
A lot of research goes on these days assessing how anxious Americans are based on online sentiment, but markets need only look to one of the handy indicators that grade volatility to see that the current moment is a stressful one.
The VIX ETPs have quite a few quirks and as a result of these quirks and their high volatility, there are considerable risks for both longs and shorts.
The 20 worst performers fell by 11-56% in the first half of 2021.
The US stock market kicked off the second quarter with new all-time highs above 4,000 on the S&P 500.
Investors can deploy VIX ETFs as short-term hedges. But remember, these products aren't credible long-term choices for your portfolio.
VXZ's index has declined in 83% of all years and nearly 70% of all months. This is the longest winning stretch in VXZ's recent history, but 10 years of data shows that it likely won't last.