REX Shares to close long VIX futures ETF

Jul 20th, 2018 | By | Category: Alternatives / Multi-Asset

REX Shares has announced it is closing the REX VolMAXX Long VIX Futures Strategy ETF (VMAX US), currently trading on Cboe BZX.

REX Shares to close VolMaxx VIX ETF

The last day of trading in the fund will be 24 July 2018.

VMAX provides investors with exposure to the VIX Index, or so-called ‘fear index’.

The VIX is a reference for the implied volatility of the S&P 500 Index, a broad-based reference for the large-cap US equity market.

The fund, which was brought to market in partnership with white label ETF platform Exchange Traded Concepts, is actively managed with the objective of being fully invested in VIX futures at all times.

It profits when the VIX increases and loses when it declines.

Launched in May 2016, the ETF was the first product on the market to provide exposure to VIX weekly futures, which started trading in July 2015. Previous VIX products targeted the VIX monthly futures market.

The shorter time horizon found with weekly VIX futures contracts was expected to result in a higher correlation and beta to the true daily price of the VIX Index.

VMAX has a total expense ratio (TER) of 1.25%

The fund has closed for new creation units and is scheduled to be de-listed on 24 July 2018. The fund is currently winding down positions, converting the portfolio to cash.

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