Flows to Volatility ETFs Becoming Deluge as S&P Rally Hedged
- TVIX took in $160 million on Monday, a single-day record
- VIX below 15 for five days, longest such streak since August
What Is an ETF?
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The longer the rebound in the Standard & Poor’s 500 Index lasts, the more traders are piling into hedges that pay out if it comes crashing down.
Take the TVIX, an exchange-traded note betting on an increase in the Chicago Board Options Exchange Volatility Index, which absorbed $160 million on Monday, the most ever for a single day and almost twice the security’s previous record. A leveraged ETF returning twice the performance of the VIX has also seen all-time inflows, even with the fear gauge below 15 for five straight days, the longest such streak since August.