For traders in search of momentum, iPath Collection B S&P 500 VIX Brief-Time period Futures ETN VXX might be on the radar. The fund simply hit a 52-week excessive and is up 128.09%% from its 52-week low worth of $39.98/share.
However are extra positive factors in retailer for this ETF? Let’s take a fast take a look at the fund and the near-term outlook on it to get a greater concept of the place it is likely to be headed:
VXX in Focus
The underlying S&P 500 VIX Brief-Time period Futures Index Complete Return affords publicity to a each day rolling lengthy place within the first and second month VIX futures contracts and displays views of the longer term route of the VIX index on the time of expiration of the VIX futures contracts comprising the Index. The product fees 89 bps in annual charges (See: All Volatility ETFs).
Why the Transfer?
Volatility has been rising recently, given the introduction of reciprocal tariffs by President Trump. The tariffs have resulted in an escalating commerce conflict and has additionally elevated the probability of a world recession. The CBOE Volatility Index, also called the worry gauge, which represents the volatility amongst market members, is at present above 50, marking a big bounce of round 195.16% from late March.
Extra Good points Forward?
VXX may proceed its sturdy efficiency within the close to time period, with a constructive weighted alpha of 29.30 (as per Barchart.com), which provides cues of an extra rally.
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iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
