VolatilityShares Daily 2x VIX Short-Term ETN (VPER.US) is an exchange-traded note that seeks to provide daily leveraged (2x) exposure to the VIX short-term futures index. Its price is significantly influenced by factors impacting the VIX. VIX Fluctuations: The VIX, often called the "fear gauge," measures market volatility. VPER's price generally moves in the same direction as the VIX, but magnified due to the 2x leverage. Increases in market uncertainty lead to higher VIX, increasing VPER. Decreases lead to lower VIX and a decline in VPER. Futures Roll Yield: VPER tracks VIX futures, not the spot VIX. The "roll yield" is the cost or benefit from rolling over expiring futures contracts to maintain exposure. A negative roll yield (contango) erodes VPER's value over time, while a positive roll yield (backwardation) benefits it. Leverage Decay: Due to daily resetting leverage, VPER experiences "decay," especially in volatile markets. This means the long-term performance may significantly deviate from 2x the VIX's overall change. Sideways or choppy markets greatly exacerbate this decay. Market Sentiment: Overall market sentiment significantly affects VPER. Risk-off sentiment drives investors towards safe havens, increasing the demand for VIX-linked products like VPER. Conversely, risk-on sentiment reduces demand, lowering its price. Economic Data Releases: Major economic data releases such as inflation reports, employment figures, and GDP announcements can cause significant market volatility, thus impacting VIX and consequently, VPER's price. Geopolitical Events: Global events like political instability, trade wars, or unexpected crises can trigger market uncertainty and volatility, leading to an increase in the VIX and VPER's price. Interest Rate Changes: Decisions by the Federal Reserve regarding interest rates can impact market volatility. Unexpected rate hikes or dovish signals can influence market sentiment and subsequently affect VIX and VPER. Supply and Demand: Like any traded asset, VPER's price is also influenced by basic supply and demand. Increased investor interest and trading activity can drive up the price, while selling pressure can lower it.