NEW YORK ( TheStreet) -- Jack Fonss, the CEO of AccuShares, says two recently introduced products simplify investment in volatility-linked Exchange Rated Notes.
In an interview with TheStreet, Fonss said that most volatility-based ETNs rely on futures and complex strategies. They possess inherent limitations that can frustrate investors. AccuShares (VXUP) and (VXDN) funds tie directly to the Chicago Board Options Exchange Market Volatility Index, known by its ticker symbol, the (VIX.X).
VXUP and VXDN trade on the NASDAQ.
"The structure and mechanisms are different," Fonss said. "Our shares are linked directly to the VIX. They'll respond directly to the cash VIX index and not the futures portfolio."
Fonts added, "Our shares are perpetual. We don't have futures so we don't have the limitations that futures bring."
The four-year-old, Stamford, Conn.-based financial services company offers different exchange rated funds.
ETNs combine aspects of bonds and exchange rated funds (ETFs).
Fonss said that most volatility-linked funds are "negatively correlated to holdings that investors typically have, like broad-based equity indices."
"We think we have more of a tactical tool," he said. "It's a complement to broad-based equity investment as opposed to its own asset class outright."