ProShares Slashes Leverage on Surviving Volatility Products
- Options on SVXY, UVXY suffer massive losses on Tuesday
- ProShares’ changes are subject to regulatory approval
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After this month’s volatility earthquake blew up a number of exchange-traded products linked to Wall Street’s fear gauge, an issuer of similar funds is trying to prevent any aftershocks.
ProShares Advisors announced changes to its investment objectives to reduce leverage on its Short VIX Short-Term Futures exchange-traded fund (ticker SVXY) and Ultra VIX Short-Term Futures ETF (ticker UVXY). The former, which allowed investors to bet against a rise in volatility, is now aiming to deliver returns equal to one-half the inverse move of the S&P 500 VIX Short-Term Futures Index. Previously, the product had sought to be a perfect mirror image each session.