HBP S&P500 VIX Short Term VIX ETF (HUV-T)

It seems not to track the VIX. It does not track the VIX, but holds the VIX futures contracts 2 months out. Every month you lose 5 to 10% due to the leverage and rolling over futures contracts. You can’t sit with these for a long period of time. Hold for a couple of days max for an event that might be asymmetrical.

Levered ETFs are not built to be held. They are day trading vehicles. Don’t bet on the market going down with this one because you have to get the timing right.

He does not advocate individual investors playing the volatility index because it is a short term play. Don’t play the leveraged ones. When VIX gests above its own 50 day average and the market violates it. You can expect some follow through selling and a spike in volatility so you can add then to help with hedging.

This is a hedge, insurance against the market going down. He has a 5% position. The VIX is at the bottom of a very long term trading range. The markets are too settled in and too happy. If the market starts to sell off, the VIX will spike aggressively. In a worst case scenario it has a 2 to 1 reward to risk ratio.

In Canada, HUV-T gives single exposure to the VIX. And there are tons of them in the US. It is a good way to play the VIX index.