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Volatility Tracker That Ran Amok in 2012 Is Back on Top: Options

One of the worst things that can happen to an exchange-traded note is that it takes on a life of its own, breaking loose from the assets it was built to track.

That’s what befell Credit Suisse Group AG’s VelocityShares Daily 2x VIX Short-Term ETN in 2012, when investors became obsessed with using it to bet against stocks and bought so much that it came unhinged from its moorings in the futures market. Two years later, the once-disgraced darling of equity bears is making a comeback, with daily volume jumping fivefold to 9.4 million shares a day since 2013.