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VIX Funds See Major Outflows as Fear Rises
11 Jun
Summary
- Investors withdrew $64.5 million from VIX ETFs, signaling unease.
- Inverse-VIX ETFs gained $9.89 million, profiting from expected calm.
- The VIX index closed at 22.22 points, a significant increase.
Investors have recently withdrawn substantial capital from exchange-traded funds (ETFs) that are structured to protect against stock market volatility through VIX index-based derivatives. A total of $64.5 million left these protective funds. In contrast, ETFs designed to profit from decreased market swings saw notable inflows, accumulating $9.89 million.
These shifts occurred as the VIX index, a key measure of expected market volatility, closed at 22.22 points. This level represents a 12% increase from the previous session, reaching its highest point since April 7. Over the past month, the VIX has fluctuated, peaking at 23.34 points and dropping to a low of 15.18 points.
Several specific funds experienced the largest outflows. The ProShares Ultra VIX Short-Term Futures saw $33.19 million withdrawn, followed by ProShares VIX Short-Term Futures with $10.91 million and 2x Long VIX Futures with $10.26 million. All inverse-VIX inflows were directed to the SVIX -1x Short VIX Futures Inverse VIX Short-Term Futures ETN.
