NEW YORK ( TheStreet) -- First Trust CBOE S&P 500 VIX Tail Hedge Fund (VIXH) began trading Thursday. The underlying CBOE VIX Tail Hedge Index is based on the S&P 500 and an amount of one-month call options on the CBOE Volatility Index (VIX) ranging from 0% to 1% of the portfolio. The exact amount is determined by the level of forward volatility.
In statistical terms, they are often referred to as
VIXH's objective is to hedge away the tail risk of equity exposure. According to the
VIX futures less than or equal to 15, no VIX calls are purchased
VIX futures above 15 and less than or equal to 30, 1% of portfolio in VIX calls
VIX futures above 30 and less than or equal to 50, 0.50% of portfolio in VIX calls
VIX futures above 50, no VIX calls are purchased
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV