The World’s Biggest Volatility ETF Grows 40% in Just Four Days

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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.

The World’s Biggest Volatility ETF Grows 40% in Just Four Days

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:

NameTickerPositionValue (USD)Change in Position% of Total Asset Value
CBOE VIX Future Mar21UXH1 Index94,8492.59 billion11,22546
CBOE VIX Future Feb21UXG1 Index25,301600.7 million-4,55811
B. 0 03/18/219127964N Govt150,000150 million02.7
B. 0 02/18/219127964D Govt125,000125 million02.2
B. 0 05/20/219127962Y Govt100,000100 million50,0001.8
B. 0 07/15/219127963S Govt100,000100 million50,0001.8
B. 0 04/15/219127964Y Govt77,00077 million01.4
B. 0 06/17/219127963H Govt50,00050 million00.9

©2021 Bloomberg L.P.

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