ProShares - VIX Short-Term Futures ETF (VIXY) Fund Overview

ProShares - VIX Short-Term Futures ETF (VIXY) Financial Services Profile

ProShares VIX Short-Term Futures ETF (VIXY) offers leveraged exposure to the S&P 500 VIX Short-Term Futures Index, targeting investors seeking to capitalize on or hedge against short-term market volatility. With a beta of -2.33, VIXY demonstrates a strong inverse correlation to broader market movements, making it a unique tool within the financial services sector.

What Is the Investment Thesis for VIXY?

VIXY provides a specialized tool for investors seeking to profit from or hedge against short-term volatility in the S&P 500. Its high negative beta of -2.33 indicates a strong inverse correlation with the market, making it potentially valuable during market downturns. However, the fund's structure, which involves rolling VIX futures contracts, can lead to value erosion over time, especially in contango markets where later-dated futures are more expensive than near-term ones. Investors should carefully consider the potential for decay and the fund's suitability for short-term trading strategies. VIXY's market capitalization is $0.24 billion.

Based on FMP financials and quantitative analysis

VIXY Key Highlights

Market Cap: $0.24B indicates the fund's size and liquidity.

• Beta: -2.33 signifies a strong inverse correlation with the S&P 500, offering potential hedging benefits.
• Dividend Yield: None reflects the fund's focus on capital appreciation rather than income generation.
• Exposure to VIX Short-Term Futures Index: Provides a direct way to invest in market volatility.
• Managed by ProShares: A reputable provider of specialized ETFs.

Who Are VIXY's Competitors?

VIXY is benchmarked below against 5 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are VIXY's Key Strengths?

Provides direct exposure to VIX futures.

• Offers a way to hedge against market volatility.
• Managed by an experienced ETF provider.
• Liquid and easily tradable.

What Are VIXY's Weaknesses?

Subject to contango risk, which can erode value over time.

• High volatility and potential for significant losses.
• Not suitable for long-term investment.
• Performance can be unpredictable.

What Are the Key Risks for VIXY?

Contango risk, which can erode value over time.

• Unexpected changes in VIX futures market structure.
• Regulatory changes impacting volatility-linked products.
• Decreased market volatility reducing demand for VIXY.
• High volatility and potential for significant losses.

What Are VIXY's Competitive Advantages?

• First-mover advantage in offering a VIX short-term futures ETF.
• Brand recognition and reputation of ProShares.
• Established trading volume and liquidity.
• Specialized expertise in managing volatility-linked products.

What Does VIXY Do?

ProShares VIX Short-Term Futures ETF (VIXY) is designed to provide investment results that correspond to the performance of the S&P 500 VIX Short-Term Futures Index. This index measures the returns of a portfolio of VIX futures contracts with a weighted average maturity of one month. VIXY offers investors a way to gain exposure to the implied volatility of the S&P 500, often referred to as the “fear gauge.” The fund operates by investing primarily in VIX futures contracts. These contracts are agreements to buy or sell the VIX index at a predetermined price and date. The fund’s strategy involves rolling these contracts, which means selling expiring contracts and buying new ones with a later expiration date. This process can be complex and can result in gains or losses depending on the shape of the VIX futures curve. VIXY is managed by ProShares, a leading provider of alternative ETFs. ProShares specializes in offering ETFs that provide leveraged, inverse, and other specialized exposures to various asset classes and market segments. The fund is based in the United States and is available to investors through major brokerage platforms.

What Products and Services Does VIXY Offer?

• Tracks the S&P 500 VIX Short-Term Futures Index.
• Provides exposure to short-term volatility in the S&P 500.
• Invests primarily in VIX futures contracts.
• Rolls VIX futures contracts to maintain exposure.
• Offers a way to hedge against market downturns.
• Allows investors to speculate on market volatility.
• Managed by ProShares, a leading ETF provider.

How Does VIXY Make Money?

• Generates revenue through management fees charged on assets under management.
• Profits from trading VIX futures contracts.
• Aims to replicate the performance of the S&P 500 VIX Short-Term Futures Index.
• Rebalances portfolio daily to maintain target exposure.

What Industry Does VIXY Operate In?

ProShares VIX Short-Term Futures ETF operates within the asset management industry, specifically in the leveraged ETF segment. This segment has grown significantly as investors seek specialized tools to manage risk and enhance returns. The competitive landscape includes other volatility-linked products and leveraged ETFs. These products cater to sophisticated investors who understand the complexities of derivatives and the potential for both high returns and significant losses. The broader asset management industry is influenced by factors such as market volatility, interest rates, and regulatory changes.

Who Are VIXY's Key Customers?

• Institutional investors seeking to hedge equity portfolios.
• Sophisticated traders speculating on market volatility.
• Hedge funds using VIXY as part of their trading strategies.
• Retail investors looking for exposure to volatility.

VIXY Financials

VIXY Latest News

VIXY Analyst Consensus

VIXY MoonshotScore

ETFs that hold VIXY

Funds in our ETF coverage that list VIXY among the top 10 holdings on their fund page, largest weight first. Each weight is the fund's reported holding weight as of the date in its row.

Common Questions About VIXY (Financials)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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