Dallas, Texas 03/07/2014 (FINANCIALSTRENDS) – Credit Suisse AG – VelocityShares Daily Inverse VIX Short Term (VIX) has overtaken Barclays iPath S&P 500 VIX Short-Term Futures ETN (VXX) in terms of assets under management. VXX has been a leader for nearly five years and has recently lost close to $5 billion from its portfolio to competition.
VelocityShares Daily Inverse VIX Short Term ETN, which delivers the opposite of VXX’s index, is the new emerging leader in the market. The solid performance showcased in the past quarter was on the back of significant growth in returns, coupled with increased adoption of short volatility strategies in the market. These go to market strategies have tremendously helped VIX emerge as a strong leader in the ETF domain. VIX recently had reported a three-year annualized return of 24%, which is well ahead of the S&P 500′s index return of 13% over the trailing 12 months. According to Velocity Shares data, XIV has $778.1 million in assets under management where as VXX assets were reported around $710.6 million.
VIX Posts bigger swing against Standard & Poor’s 500 Index (SPX)
According to analyst reports, VIX has posted bigger swings, which has triggered intense panic in the stock market. According to data from trade gurus, the fund has witnessed 3 of its largest gains in past 13 months. In the immediate past, when the stock index was down by 1.75 percent or more, VIX increased by an average of 30% and more. Since 2012, VIX has surged more than 16 % of its market value, when S&P 500 has fallen at least 1.75 %. Comparatively, VIX in a big way surpassed the index moves, under the same circumstances in 2006.
VIX Activity during Calm Periods
VIX witnessed noticeable jumps when the markets were calm.