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SVXY

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1d
1w
1m

Analysis and statistics

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About

SVXY.US refers to ProShares Short VIX Short-Term Futures ETF. It is an exchange-traded fund (ETF) designed to provide the inverse (-1x) of the daily performance of the S&P 500 VIX Short-Term Futures Index. This index measures the prices of the first and second month VIX futures contracts. Because of the inverse relationship, SVXY is designed to profit when volatility, as measured by VIX futures, declines. It is important to note that SVXY is not a long-term investment vehicle and is typically used for short-term trading strategies due to the effects of compounding and volatility decay.
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Factors

VIX Futures Prices: SVXY's value inversely tracks short-term VIX futures. Higher VIX futures lead to lower SVXY prices.

Market Volatility: Increased market volatility, as measured by the VIX, generally causes SVXY to decline due to its short volatility strategy.

Roll Yield: Contango in VIX futures erodes SVXY's value over time, as it must buy more expensive contracts.

Trading Costs: Brokerage fees and fund expenses impact SVXY's overall return, reducing its price.

Inverse Correlation Accuracy: Imperfect inverse correlation with the VIX can cause SVXY to deviate from expected performance.

Rebalancing Frequency: Daily rebalancing attempts to maintain the inverse VIX exposure, but this process is costly and can negatively affect price.

Fund Flows: Significant inflows or outflows can temporarily impact SVXY's price due to trading activities.

General Market Sentiment: Broad market risk aversion can drive up VIX futures and lower SVXY's price, regardless of realized volatility.

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