INSUBCONTINENT EXCLUSIVE:
more than $633 million has poured into US-listed exchange-traded products that benefit from a rise in volatility, putting May on track to be
VIX Short-Term Futures product, a note tracking Cboe Volatility Index futures
Meanwhile, the demise of the shortvolatility trade is continuing apace in the passive space, with a negligible $2.1 million added to the
swings like this August 2016, when the VIX index jumped the following month
Back then, retail folk voted with their feet by piling into VIX ETFs while institutional investors were relatively unruffled as they
surrendered hedges.
A similar dynamic of sorts seems to be in play today
For money managers outside the ETF ecosystem, seeking protection against choppy trading appears less compelling while the VIX index trends
down toward January levels.
Case in point: hedge funds and other leveraged accounts have flipped back to a net short position on VIX
Some institutional investors may be limited in their ability to hold derivatives, and prefer the product for its convenience and
