Using VXX to Get through These Volatile Markets

( VXX B+ ) is a short-term futures exchange-traded note (ETN) that’s designed to provide investors exposure to the S&P 500 (VIX). VIX is the most popular measure of investor sentiment and market volatility (as conveyed by S&P 500 Index option prices). But why would anyone want exposure to volatility? (Read: shouldn’t we stay away from a volatile market?) If you are not heavily invested in the market, it’s not a bad idea to wait out the volatile period. But what if you are in the market and need to protect your portfolio against volatility? Waiting or selling off your portfolio and then rebuilding it later could turn out to be expensive. Exposure to VIX can help investors hedge portfolio risk or even gain from the volatility itself.