ProShares, a premier provider of alternative exchange traded funds (ETFs), today announced the launch of the first Volatility ETFs. The ProShares VIX Short-Term Futures (VIXY) and VIX Mid-Term Futures (VIXM) ETFs provide exposure to equity market volatility by seeking to match the performance of their respective VIX futures indexes, before fees and expenses. Both ETFs will list today on NYSE Arca.
“Until now, to access volatility, many investors have considered exchange traded notes (ETNs), which subject them to the credit risk of the note’s issuer,” said Michael L. Sapir, Chairman and CEO of ProShare Capital Management, the sponsor of the funds. “Now, for the first time, investors can access volatility with a U.S. exchange traded fund.”
VIXY is linked to the performance of the S&P 500 VIX Short-Term Futures™ Index, which targets a constant, weighted-average term of one month. VIXM is linked to the performance of the S&P 500 VIX Mid-Term Futures™ Index, which targets a constant, weighted-average term of five months.
About ProSharesProShares is a premier provider of alternative ETFs. The firm offers 114 ETFs with nearly $24 billion 1 in assets. The ProShares lineup includes the world’s largest family of geared (leveraged and inverse) ETFs. 2 ProShares is part of ProFunds Group, which was founded in 1997 and manages nearly $31 billion 1 in mutual fund and ETF assets. About VIX and VIX Futures Indexes The CBOE Volatility Index® (VIX) is a widely followed measure of the expected volatility of the S&P 500. Since the VIX is not directly investable, S&P 500 volatility exposure is often achieved through VIX futures. Each of the VIX futures indexes measures the movements of a combination of VIX futures and is designed to track changes in the expectation for VIX over a specific time window in the future. As a result, the VIX futures indexes, and VIXY and VIXM, can be expected to perform differently than the VIX.