Barclays Rolls Out Inverse VIX ETN (XXV)

Barclays Capital announced the latest addition to its ETN product lineup this week, launching the first exchange-traded product designed to offer inverse exposure to the primary measure of equity market volatility. The Barclays ETN+ Inverse S&P 500 VIX Short-Term Futures ETN (XXV) is linked to the inverse performance of the S&P 500 VIX Short-Term Futures Index Excess Return, a benchmark that reflects the returns potentially available through an unleveraged investment in short-term futures on the VIX index. The CBOE Volatility Index, better known as the VIX and often referred to as the “fear index,” is a popular measure of the implied volatility of S&P 500 index options. The VIX represents the market’s expectation of volatility over the next 30 days. The VIX was introduced in 1993, but options for achieving exposure to the benchmark are relatively new innovations. Trading in VIX futures began in March 2004, and options were introduced two [...] Click here to read the original article on ETFdb.com. Related Stories: ProShares Launches Inverse Treasury ETF Barclays’ Ananth Madhavan: Are Leveraged ETFs Creating Systemic Risk? iShares Rolls Out Nine Ex-U.S. Sector ETFs