Retail Money Picks the Wrong Time to Resume Shorting Volatility

Bloomberg’s Scarlet Fu, Eric Balchunas and Rachel Evans talk ETF volatility with Direxion’s Sylvia Jablonski.(Source: Bloomberg)
Lock
This article is for subscribers only.

Lesson not learned.

In the days after the biggest stock rout in seven years wiped out an esoteric exchange-traded note that bets on market calm, retail investors poured more than $200 million into the largest surviving exchange-traded product that does the exact same thing. Wednesday’s flows alone into the ProShares Short VIX Short-Term Futures exchange-traded fund, better known by its ticker SVXY, amounted to 32 percent of its total assets.