Skip to content

Amped-Up Bet on Volatility Goes Awry With Loss of $400 Million

  • Subdued VIX wrongfoots investors who piled into long-vol ETF
  • Reprieve could come in August as mounting risks reward hedges

It doesn’t pay to hedge this bear market.

Investors piled into an exchange-traded fund designed to protect them from market turbulence after the worst start to a year in history, but that protection is turning out to be costly.