Jefferies May Offer First ETF Tied VIX Futures
April 27, 2010 Uncategorized
Jefferies (NYSE: JEF), the boutique investment bank that is a fairly new entrant to the ETF game, has filed plans to launch an ETF tied VIX volatility futures. The volatility index or “VIX,” is a gauge of investor fear that typically rises as equities fall.
The Jefferies ETF will trade futures contracts in the underlying the VIX Futures Index. The VIX measures price fluctuations in put and call options over a one-month time horizon.
Jefferies’ ETF will be different than the S&P 500 VIX Short-Term Futures ETN (NYSE: VXX) and the Mid-Term Futures ETN (NYSE: VXZ) because those are ETNs and both invest in other areas of VIX futures.
The Jefferies ETF will trade unde the ticker “VIXX” on the NYSE with an expense ratio of 0.49%. No release date was disclosed. Jefferies already issues four ETFs.