Investors withdrew a combined $64.5 million from exchange-traded funds structured around VIX index-based derivatives, according to fund flow figures. At the same time, inverse-VIX products that profit when volatility subsides recorded a single inflow of $9.89 million.
Total assets allocated to funds that track derivatives tied to the Cboe Volatility Index increased to $2.89 billion from $2.85 billion. That aggregate asset level expanded about 1% over the same period even as the group experienced net redemptions for four consecutive trading days.
The VIX index closed at 22.22 points, an increase of 12% from the prior session and the highest closing level since April 7. Over the past month the VIX has moved between a high of 23.34 points and a low of 15.18 points, reflecting a notable range in implied market volatility.
Outflows were concentrated among some of the largest leveraged and non-leveraged long-VIX ETFs. ProShares Ultra VIX Short-Term Futures (UVXY) registered the biggest withdrawal at $33.19 million. ProShares VIX Short-Term Futures (VIXY) saw $10.91 million in redemptions, while 2x Long VIX Futures (UVIX) experienced outflows totaling $10.26 million.
On the opposite side, the SVIX -1x Short VIX Futures Inverse VIX Short-Term Futures ETN accounted for all of the inverse-VIX inflows, receiving $9.89 million during the reporting period.
The flow pattern shows investors trimming exposure to products designed to amplify moves in volatility, while selectively adding to a single inverse- VIX ETN. Despite multiple days of withdrawals from the VIX-linked fund complex, aggregate assets increased modestly, illustrating a mixed set of flows across the short-term volatility product landscape.
Data highlights
- Total assets in VIX-derivative funds: $2.89 billion, up from $2.85 billion.
- Net withdrawals from long/leveraged VIX funds: $64.5 million.
- Net inflow to inverse-VIX ETN (SVIX): $9.89 million.
- VIX close: 22.22 points, up 12% from prior session; monthly range 15.18 - 23.34 points.