The World’s Biggest Volatility ETF Grows 40% in Just Four Days
(Bloomberg) -- The biggest exchange-traded fund that profits from U.S. stock volatility has added more than $600 million of new money in less than a week.
The ProShares Ultra VIX Short-Term Futures ETF (ticker UVXY) now boasts $2.2 billion in assets, up from $1.6 billion late last week, according to data compiled by Bloomberg. Activity in the fund is surging, with trading volume on Wednesday jumping to more than three times the one-year average.
Exactly what’s behind the sudden frenzy remains unclear.
Some of the recent demand may be driven by wagers on the Cboe Volatility Index to rise. However investors could also be acquiring shares of UVXY in order to lend them out -- in effect betting against it and on enduring calm in the equity market.
The latter view finds some support in the number of shares sold short, which has jumped to about 4.6 million -- the highest since March -- according to data from IHS Markit Ltd.
UVXY has attracted net inflows of $2.22 billion in the past year. The following table shows the fund’s biggest holdings as of Feb. 10:
| Name | Ticker | Position | Value (USD) | Change in Position | % of Total Asset Value |
|---|---|---|---|---|---|
| CBOE VIX Future Mar21 | UXH1 Index | 94,849 | 2.59 billion | 11,225 | 46 |
| CBOE VIX Future Feb21 | UXG1 Index | 25,301 | 600.7 million | -4,558 | 11 |
| B. 0 03/18/21 | 9127964N Govt | 150,000 | 150 million | 0 | 2.7 |
| B. 0 02/18/21 | 9127964D Govt | 125,000 | 125 million | 0 | 2.2 |
| B. 0 05/20/21 | 9127962Y Govt | 100,000 | 100 million | 50,000 | 1.8 |
| B. 0 07/15/21 | 9127963S Govt | 100,000 | 100 million | 50,000 | 1.8 |
| B. 0 04/15/21 | 9127964Y Govt | 77,000 | 77 million | 0 | 1.4 |
| B. 0 06/17/21 | 9127963H Govt | 50,000 | 50 million | 0 | 0.9 |
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