Credit Suisse AG – VelocityShares Daily 2x VIX Short Term ETN(NASDAQ:TVIX) Witness Substantial Dip


Dallas, Texas 03/12/2014 (FINANCIALSTRENDS) – Credit Suisse AG – VelocityShares Daily 2x VIX Short Term ETN(NASDAQ:TVIX) is an ETF issued by Velocity Shares. It was issued with the intent of providing investors with a choice to invest in the contracts that are actively traded on the S&P 500 VIX Short-Term Futures Index. During February, there were around 17.9 million issued shares. According to the reports, the trading range was between $6.45 and $61.7 during past 52 weeks. It hit the peak during second week of February at $7.20.

During the subsequent week, the fund witnessed a substantial dip of 29.2% during one week trading. And considering the losses during 2 week and 2 months, it computes to 1.73% and 52% respectively. Velocity Shares Daily 2x VIX Short Term ETN (NASDAQ:TVIX) returns during one year period dipped by 84% and no dividends were paid during that period.

VelocityShares Daily 2x VIX Short Term ETN was intended to make use of the unstable market, however there was a deviation of 11.9% and expense ratio of 1.65. It has been a straggler compared to other volatility based ETF’s. 

Volatility Products witness Decline 

The Fed lowered its purchase of mortgage-backed securities and Treasury securities amounting to $65 billion per month respectively early this year. The fed also indicated the further plan of Fed taper will depend on the speed economy’s recovers. Volatility products witnessed poor trading during last month. In ten days, the CBOE Volatility Index (VIX) dived down to 29% at $13.57.  The CBOE Volatility Index (VIX) was generated by means of implied volatilities of the S&P 500 index options, the Index was generated. During the last 10 trading sessions, VelocityShares Daily 2x VIX Short Term ETN (TVIX) witnessed a downfall of 30%.