 The
ProShares VIX Mid-Term Futures ETF is an exchange-traded fund that
seeks to provide investors with exposure to mid-term VIX futures
contracts, which are designed to track the expected volatility of the
S&P 500 Index over a period of 4 to 7 months. The fund is managed by
ProShares, an investment management company that specializes in
alternative ETFs.
As of September 2021, the VIXM ETF had a net
asset value of approximately $115 million and held VIX futures
contracts with a variety of expiration dates. The fund's strategy is
to roll its exposure to VIX futures contracts over time in order to
maintain a constant 4-7 month maturity profile.
VIX futures
contracts are derivatives that are designed to track the expected
volatility of the S&P 500 Index, and may be used by investors as a
hedge against market downturns or as a way to gain exposure to market
volatility. However, VIX futures contracts are also subject to unique
risks and challenges, such as the potential for significant price
swings and the impact of market contango.
The expense ratio for
the VIXM ETF is 0.85%, which is relatively high compared to the
expense ratios of some other ETFs. This may make the VIXM ETF more
suitable for short-term trading strategies rather than long-term
investments.
Overall, the ProShares VIX Mid-Term Futures ETF
may be a suitable investment for investors seeking exposure to
mid-term VIX futures contracts as a way to hedge against market
downturns or to gain exposure to market volatility. However, as with
any investment, it is important to carefully evaluate the risks
associated with VIX futures contracts, as well as the relatively high
expense ratio of the fund. Investors should also conduct their own
research and consider their investment goals and risk tolerance before
investing in the fund.
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