Dallas, Texas 08/26/2014 (FINANCIALSTRENDS) – Credit Suisse AG – VelocityShares Daily 2x VIX Short Term (NASDAQ:TVIX) which was under severe attack by the likes of Robert Whaley, famous for ‘father of fear Index,’ in June this year, this equity index has apparently stood its ground to decry the fear factors.
Where Whaley arguments were commendable countered by many, the most constructive argument came from the official spokesperson at S&P Dow Jones.
Whaley had argued that his purchase of this ETF was based on its volatility. However, in over a week, it failed to meet the expectation associated with it leading to whaley’s infamous criticism.
S&P spokesperson commented that the ETF is built to offer a well-structured Index, which has the key features to remain robust, as well as transparent besides fairness.
The de-construction of the built-in plan for this fund that it will not, in the long-term deliver on positive returns has been central to Credit Suisse AG – VelocityShares Daily 2x VIX Short Term (NASDAQ:TVIX), the spokesperson clarified. Contango, the technical factor, is part of the futures market the clarification was offered.
Hence, those investors who were interested or preferred to take a long-term position will then have to deal with the issues of contango, the official clarified.
Credit Suisse AG – VelocityShares Daily 2x VIX Short Term (NASDAQ:TVIX) now into a new month after the criticism has been performing along the lines it was programmed for. It continues to belie the fear Index cry-out and has sustained the slump, however marginally. The intrinsic value of these funds isin their volatility and investors who read these funds for the true nature for which they are created to perform are reaping the benefits.
TVIX has in the weeks past, decried the Fear-Index and continues on the well-programmed path of required deliverable.