ProShares VIX Short-Term Futures ETF
Perhaps the biggest victim of the steady rise in stocks this year is volatility. Unlike 2011, stocks haven’t been very volatile at all. In fact, they’ve been downright stable as they’ve conducted their bullish march higher. That’s left the ProShares VIX Short-Term Futures ETF (NYSE:VIXY) fund down 32.7% in 2012. This fund is a bet on the rise of the VIX, also known as the “fear index.” Well, there hasn’t been much fear in the market this year, but all of that could change with some adverse news on the economic front here at home, in China, or in the persistently perilous European Union. One big negative could raise the fear factor up to heightened levels — and with it the value of VIXY.
This article originally ran in Traders Reserve