Reported 28 days ago
JPMorgan Chase has introduced its Inverse VIX Short-Term Futures ETNs, aiming to provide returns based on the performance of futures linked to the Cboe Volatility Index (VIX), specifically designed to increase by 1% for every point decrease in VIX futures. While the product presents a new opportunity for investors amid rising market volatility, experts warn of the inherent risks associated with ETNs, particularly concerning past failures during high volatility events. This innovative structure aims to mitigate the risks seen in earlier inverse VIX products, although its applicability as a hedge remains complex.
Source: YAHOO