Volatility Premium Plus ETF (ZVOL)

Volatility Premium Plus ETF is an actively managed fund that seeks to profit from the volatility risk premium, the tendency for expected market volatility priced into derivatives to exceed the volatility that actually occurs. It does this mainly by taking short positions in VIX futures, which are linked to the Cboe Volatility Index measuring expected S&P 500 volatility.

Short volatility positions tend to gain when markets are calm and VIX futures prices drift lower, but they can lose value quickly when volatility spikes. The strategy may also use options to seek additional income or to limit losses during sharp volatility increases. The fund trades on Cboe BZX under the ticker ZVOL.