Dallas, Texas 11/12/2013 (Financialstrend) – The exchange traded fund VelocityShares Daily Inverse VIX ST ETN (NYSE:XIV) aims to bench mark its dividend yield and market appreciation against the results which are in line with “S&P 500 VIX Short-Term Futures index.” The fund attempts to provide expose its inventors to futures related trading options aligned with “volatility forward curve”. The fund has managed to put together net assets of $295 million and has managed to provide return of 61.4% year to date.
At close of business on November 11, the fund share was trading at $30.79, setting a new 52 week high price point of $30.68 per share. At current valuations, the stock is 108% up from its 52 week low price of $14.78 per share. Through the day’s trading the ETF stock appreciated by 0.42% in spite of a 50% dip in the daily transaction volume. Only 5.5 million shares of the stock got traded yesterday, as against a 12.7 million average daily trading volume.
The ETF has not paid out any dividend over the past 12 months. It has seen 96% upward surge in its market value in the past year which is a significant appreciation compared to the S&P 500 index appreciation and returns.
The fund which tries to make money by hedging against the inherent volatility in trading, has managed to post strong results over the past year, thanks to the prevailing economic volatility. During September, Fed decision on initiating taper moves drove the volatile sentiment, where as in October it was the impending now on now off budget logjam. Earlier in the year the uncertainty around the strength of the U.S. dollar against other globally traded currency was key reason for the uncertain financial macro situation. In addition the current anticipation of increase in the long term rate of interest is another key reason for the continued buoyancy in the stock of this ETF.