Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

XIV and ZIV Are Huge Success Stories Two Years After Launching

Fri, Nov 30, 12:42 PM ET, by Bill Luby

It was two years ago today that VelocityShares launched their six VIX-based exchange-traded products and I'm fairly certain I was the only one who was covering that event on the day of the launch: Impressive Launch for Sextet of New Volatility ETNs from VelocityShares.

Two years later, one of these products, the VelocityShares Daily Inverse VIX Short-Term ETN, (XIV), is an unqualified success in terms of assets and performance. Over the last three months, XIV has traded an average of more than 12 million shares per day, making it the second most popular VIX-based ETP, after VXX. Part of the reason for XIV's popularity is no doubt due to performance. As the chart below shows, XIV is up more than 200% for 2012 and has been the top performer across all ETPs for the year.

The amazing thing about the performance of XIV is that it was not very difficult to predict. In fact, less than one week after XIV was launched, I unveiled my bullish forecast for XIV in the Bespoke Investment Group's second annual roundtable. When asked about some of my favorite picks for 2011 and beyond, I predicted:

"2011 will mark the rise of volatility as an asset class.  Part of the reason for this rise will be the runaway success of VIX-based ETNs and ETFs, notably the recently launched XIV, which will prove that volatility vehicles can be good buy-and-hold investments."

As meteoric as the rise of XIV has been, what surprises me is how little attention XIV's sibling, ZIV, (VelocityShares Daily Inverse VIX Medium-Term ETN) has received. ZIV typically trades about 10,000 shares per day and yet this ETP has outperformed XIV by a substantial margin since the two were launched. Not only has ZIV been a better performer, but it has done so with considerably less risk. In 2011, for instance, XIV was down 45.54% for the year, while ZIV incurred a loss of only 9.20%. I thought perhaps that my ZIV Undeservedly Neglected post from January of this year might jump-start some interest in ZIV, but for some reason, investors continue to shy away from this impressive performer.

The other four products that VelocityShares launched with XIV and ZIV have had mixed results. The most famous of these is TVIX, which was briefly the top VIX-based ETP in terms of volume in February, before Credit Suisse (CS) suspended creation units in the product, which opened the door to the ProShares Ultra VIX Short-Term Futures ETF (UVXY) displacing TVIX as the top +2x VIX-based ETP. For the most part, VIIX, VIIZ and TVIZ have operated as niche products since their launch.

Going forward, don't be too surprised if XIV and ZIV continue to post impressive numbers and if you haven't yet looked at ZIV, it is never too late to do so.

Related posts:

[source(s): ETFreplay.com]

Disclosure(s): long XIV, long ZIV, short VXX and short UVXY at time of writing



SDI Glossary: "Exchange" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "Futures" Definition
SDI Glossary: "Risk" Definition
SDI Glossary: "Short" Definition
SDI Glossary: "VIX" Definition
This Article's Word Cloud:   Daily   ETNs   ETPs   Futures   Impressive   Inverse   Launch   Neglected   Performance   Sextet   Short   TVIX   Term   UVXY   Undeservedly   VelocityShares   Volatility   about   adsbygoogle   after   based   been   from   have   impressive   launch   launched   less   most   only   performance   performer   post   products   reason   rise   second   some   terms   than   that   these   this   traded   volatility   which   will   with   year   years

| More

Micron MU and the Persistence of Stable Trends
Fri, Mar 24, 4:11 PM ET, by Corey Rosenbloom

“Trends, once established, have greater odds of continuity than of reversing.” Micron (MU) is a ...

Fibs Fibs Fibs All About the Emini Fibs March 24 Update
Fri, Mar 24, 1:51 PM ET, by Corey Rosenbloom

Our short-term Fibonacci Grid continues to capture the highs and lows of the last couple ...

Join Me Wednesday March 29 for a Live Market Forecasting Panel with Wyckoff Analytics
Thu, Mar 23, 9:11 PM ET, by Corey Rosenbloom

We’re doing it again! I’m honored to be a guest of Roman Bogomazov and his ...

Exciting Emini Bounce Update March 23
Thu, Mar 23, 12:11 PM ET, by Corey Rosenbloom

Often after a crash comes a recovery. That’s what’s happening at the moment in the ...

A Second Divergent Drop for Google GOOGL
Wed, Mar 22, 3:41 PM ET, by Corey Rosenbloom

Google (GOOGL) rallied a second time into a key reversal or “fade” set-up and delivered ...

Quad Market Movement as the Stock Market Crashes March 21
Tue, Mar 21, 2:11 PM ET, by Corey Rosenbloom

This morning we just updated the “Stock market crashing through key target levels” but what’s ...

Disney DIS Slides to New Highs on Divergences March 20
Mon, Mar 20, 2:21 PM ET, by Corey Rosenbloom

Disney (DIS) continues to be a “strong stock getting stronger” which is evidenced by today’s ...

Emini Playing into Critical Fib Support Level Today March 20
Mon, Mar 20, 12:41 PM ET, by Corey Rosenbloom

After yesterday’s Fed Day, stocks surged back toward the prior high, breaking their Fibonacci Grid. ...

Announcing Trader Education Week Next Week
Fri, Mar 17, 6:21 PM ET, by Corey Rosenbloom

Get ready for Trader Education Week! Traders Classroom and Club EWI are opening up March ...

Emini Heading Toward the Highs March 16 Update
Thu, Mar 16, 2:51 PM ET, by Corey Rosenbloom

After yesterday’s Fed Day, stocks surged back toward the prior high, breaking their Fibonacci Grid. ...

Here Goes our Fourth Successful SPX Bull Flag Since November
Wed, Mar 15, 3:11 PM ET, by Corey Rosenbloom

If you’re keeping track, the market is poised to complete its fourth successful Bull Flag ...

Fed Day Fibonacci in the Emini Gameplan March 15
Wed, Mar 15, 1:21 PM ET, by Corey Rosenbloom

It’s the Ides of Mach! And a Fed Day! Do you know where your Fibonacci ...

Emini Bounces Between our Fibs Again March 14
Tue, Mar 14, 11:31 AM ET, by Corey Rosenbloom

We’re still seeing range action between our key short-term Fibonacci Levels in the Emini @ES. ...

A Bad Day for Wearables GoPro and FitBit GPRO FIT
Mon, Mar 13, 3:51 PM ET, by Corey Rosenbloom

Popular wearable Fitbit (FIT) and GoPro (GPRO) both plunged over 4% today, continuing their ongoing ...

Flailing within the Fibs Emini Update March 13
Mon, Mar 13, 1:11 PM ET, by Corey Rosenbloom

After gapping higher Friday, stocks stalled beneath our key short-term Fibonacci Level. We’re seeing price ...

Big Downside Surprise for Finisar FNSR on Three Push Reversal Pattern
Fri, Mar 10, 1:21 PM ET, by Corey Rosenbloom

The “Three Push” Reversal pattern is one of my favorite chart patterns and set-ups to ...

Playing the Jobs Report Fibonacci Bounce March 10
Fri, Mar 10, 1:11 PM ET, by Corey Rosenbloom

A slightly better than expected morning Jobs Report sent shares surging on Wall Street, gapping ...

Emini Crashing Down to the Lower Fibonacci Target March 9
Thu, Mar 9, 2:41 PM ET, by Corey Rosenbloom

Well folks, here we are, crashing through the “First Fib” down to the official 38.2% ...

Crude Oil USO Finally Does Something Interesting Again March 8
Wed, Mar 8, 3:11 PM ET, by Corey Rosenbloom

I’ll be honest – I stopped caring about Crude Oil for most of 2017 because ...

Emini Building Rally off Make or Break Support March 8
Wed, Mar 8, 2:11 PM ET, by Corey Rosenbloom

It was so nice the market did it twice! And today makes three times the ...

Gold Also Tumbles to Key Fibonacci Level
Tue, Mar 7, 2:21 PM ET, by Corey Rosenbloom

Like the S&P 500, Gold pulled back to a key Fibonacci and price overlap target. ...

Straight Back to our Emini Fibonacci Target We Go March 7
Tue, Mar 7, 1:41 PM ET, by Corey Rosenbloom

It was so nice the market did it twice! Today we’re seeing a Repeat Day ...

Top Ten Put and Call Option Volume and Activity March 6
Tue, Mar 7, 8:11 AM ET, by Corey Rosenbloom

File this under “interesting reference post” – as these are the top ten stocks and ...

A Quick Collapse toward Support Target in Advance Micro AMD
Mon, Mar 6, 3:11 PM ET, by Corey Rosenbloom

Advanced Micro Devices (AMD) more than doubled since last November. However, March has not been ...

Bam Goes the Emini Fibonacci Reversal at Target March 6
Mon, Mar 6, 1:11 PM ET, by Corey Rosenbloom

Did you think it was impossible for the market to pull back to the first ...

Planning Gold as it Declines from Swing High March 3
Fri, Mar 3, 12:31 PM ET, by Corey Rosenbloom

Gold rallied strongly from the $1,120 low to the recent price target near $1,260. What’s ...

The Plot Thickens as the Emini Decline Deeper March 3
Fri, Mar 3, 12:11 PM ET, by Corey Rosenbloom

Do not adjust your computer monitor – you’re actually seeing the Emini pull back from ...

An Actual Emini Pullback from 2400 March 2
Thu, Mar 2, 12:41 PM ET, by Corey Rosenbloom

Do my eyes deceive me or is that an actual authentic pullback in the @ES? ...

Apple AAPL Accelerates Trendline Rage through 140
Wed, Mar 1, 4:11 PM ET, by Corey Rosenbloom

Apple (AAPL) shares raged higher today with an acceleration gap through the $140 per share ...

Are You Watching the Huge Breakouts in Financials XLF FAS FAZ
Wed, Mar 1, 12:41 PM ET, by Corey Rosenbloom

Financials! We’re seeing financial stocks – seen fastest by the XLF Sector EFT – surge ...

Just Showing the Pure Price Emini Breakout Today March 1
Wed, Mar 1, 12:11 PM ET, by Corey Rosenbloom

The market is surging this morning, extending the bull market with a short-squeezed bullish breakout. ...

Ten Years Since the Biggest VIX Spike Ever
Mon, Feb 27, 3:51 PM ET, by Bill Luby

Ten years ago today, we witnessed that largest one-day VIX spikein the nearly three decade ...

The VIX Summit: CBOE RMC (March 8-10 in Dana Point, CA)
Sun, Feb 26, 3:11 PM ET, by Bill Luby

I often get asked about where to go to learn more about the VIX and ...

Clustering of Volatility Spikes
Sun, Feb 26, 2:11 PM ET, by Bill Luby

Last week, my Putting Low Stock Volatility to Good Use (Guest Columnist at Barron's) triggered ...

Defensive Gold and Treasuries Bullishly Break Resistance
Fri, Feb 24, 12:11 PM ET, by Corey Rosenbloom

File this under “very interesting” – defensive markets Gold and Treasuries just reversed higher. If ...

Sharp Down but Fast Up Emini Pullback Update Feb 24
Fri, Feb 24, 11:31 AM ET, by Corey Rosenbloom

And the plot thickens! Stocks pulled back for a second time this morning, gapping lower ...

Super Down for L Brands New Breakdown Low
Thu, Feb 23, 2:51 PM ET, by Corey Rosenbloom

“Stocks which are weak and downtrending tend to get weaker and go lower.” That’s precisely ...

How Other Markets Behaved while Stocks Surged Feb 22
Wed, Feb 22, 2:11 PM ET, by Corey Rosenbloom

It’s easy to be distracted by shiny objects, like the non-stop stock market rally since ...

New Highs as Far as the Eye Can See (for now) Feb 22
Wed, Feb 22, 11:21 AM ET, by Corey Rosenbloom

It’s rare to see broad market impulses this strong and persistent but yet here we ...

SPX 1, 2 and 3-Year Returns Following Top and Bottom Five (and Ten) VIX Average Annual Readings
Tue, Feb 21, 8:11 AM ET, by Bill Luby

On Saturday, I posted Putting Low Stock Volatility to Good Use (Guest Columnist at Barron's) ...

Putting Low Stock Volatility to Good Use (Guest Columnist at Barron's)
Sat, Feb 18, 5:21 PM ET, by Bill Luby

With spring training just getting underway in Florida and Arizona, I think it is appropriate ...

March Class Special: Detecting Tradable Setups and Reliable Signals with Corey
Thu, Feb 16, 12:11 PM ET, by Corey Rosenbloom

I’m excited to announce an upcoming full-month of classes and actionable trader education for you ...

We Forgot what a Pullback Was Market Update Feb 16
Thu, Feb 16, 11:11 AM ET, by Corey Rosenbloom

Wait – what is this? Price can actually go DOWN? After the last five days, ...

Bulls Still Dominate the Highs Feb 15
Wed, Feb 15, 1:31 PM ET, by Corey Rosenbloom

The uptrend continues! And continues… and continues. And still continues even after yesterday’s pullback. ...

Six Stellar Stocks Shooting Straight Up Nine Days in a Row
Tue, Feb 14, 8:31 PM ET, by Corey Rosenbloom

When we scan for stocks, we like to find “strong stocks getting stronger.” One way ...

Market Internals and the New Pullback from the Highs Feb 14
Tue, Feb 14, 11:41 AM ET, by Corey Rosenbloom

The uptrend continues! And continues… and continues. Until today’s pullback at least. ...

New Introduction to the Wave Principle Video
Fri, Feb 10, 5:51 PM ET, by Corey Rosenbloom

If you’ve never heard of the Elliott Wave Principle, or want a quick intro-level refresher, ...

Time for a Longer Timeframe Bounce for Coca Cola KO
Fri, Feb 10, 10:11 AM ET, by Corey Rosenbloom

Let’s see if buyers can take advantage of a long term rising trendline for Coca-Cola ...

Tesla TSLA Surges with Market on Break to New Highs (but Watch the Weekly Chart)
Thu, Feb 9, 3:41 PM ET, by Corey Rosenbloom

Tesla (TSLA) shares continued their strong uptrend, breaking out to a new swing high this ...

Breaking Out to New Highs Feb 9
Thu, Feb 9, 12:21 PM ET, by Corey Rosenbloom

The uptrend continues! And continues… and continues. Today we’re seeing another breakout to new highs ...

  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

XIV and ZIV Are Huge Success Stories Two Years After Launching | Self Directed Investor | Copyright © 2008 - 2017, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of serious individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.