Move Over VIX (VXX): A Better Way to Measure Volatility?

The S&P 500 VIX Short-Term Futures ETN debuted in early 2009 and has been one of the most polarizing funds ever since. Tracking futures on the VIX, which is often dubbed “The Fear Index,” VXX has offered traders hefty volatility and the potential for significant gains (or losses). Trading an average of 13.2 million shares each day, VXX is one of the most traded ETFs in the world. Now, a firm called NationShares, believes it has developed a better way for investors to track volatility and the firm plans to release an ETF that looks to compete with VXX [for more ETF news and analysis subscribe to our free newsletter]. How the VIX and VXX Work The VIX gets its fear-related nickname due to the fact that it tracks the implied volatility of the S&P 500 (SPX). It does this by measuring the price of options on the SPX, including [...] Click here to read the original article on ETFdb.com. Related Posts: iPath to Reverse Split VXX Six Noteworthy ETF Innovations Volatility ETPs: Where Are The Critics Now? August ETF Stats: Keeping The Winning Streak Alive (Just Barely) Six ETFs Up 45% Or More During The Recent Crisis