iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) Stock Research

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Unusually active option classes on open August 7th

Aug 7, 9:40 AM

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Unusually active option classes on open July 31st

Jul 31, 9:40 AM

Unusually active option classes on open July 30th

Jul 30, 9:40 AM

Unusually active option classes on open June 23rd

Jun 23, 9:40 AM

Unusually active option classes on open June 12th

Jun 12, 9:40 AM

Unusually active option classes on open June 5th

Jun 5, 9:40 AM

Largest borrow rate increases among liquid names

Feb 6, 8:45 AM

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Direct Volatility Exposure: Provides a convenient and accessible way for investors to gain exposure to the S&P 500 VIX Short-Term Futures Index, reflecting market expectations of future volatility.

High Liquidity: Benefits from high trading volumes and tight bid-ask spreads as an exchange-traded product, allowing for efficient entry and exit points.

Ease of Access: Investors can buy and sell VXX through standard brokerage accounts, making it highly accessible compared to direct futures contract trading.

Contango/Roll Yield Loss Risk: The underlying VIX futures curve is frequently in contango, meaning later-dated contracts are more expensive than nearer-dated ones. VXX constantly sells expiring front-month contracts and buys the next month's contracts, leading to a consistent "roll yield" loss that erodes the ETN's value over time, especially during periods of low volatility.

Not Spot VIX Tracking Risk: VXX tracks an index of VIX futures, not the spot VIX index itself. The performance of VIX futures can diverge significantly from the spot VIX, particularly during rapid market movements or over extended periods, leading to unexpected returns for investors anticipating direct VIX exposure.

Issuer Credit Risk: As an Exchange Traded Note (ETN), VXX is an unsecured debt obligation of its issuer, Barclays Bank PLC. Investors are exposed to the credit risk of Barclays; in the event of the issuer's insolvency, investors could lose all or a substantial portion of their investment, regardless of the performance of the underlying VIX futures.

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