Janus Velocity Volatility Hedged Large Cap ETF SPXH
This ETF tracks the VelocityShares Volatility Hedged Large Cap Index and looks to hedge “volatility risk” in the S&P 500. It offers investors exposure to not only the S&P 500 but also both long and inverse exposure in short-term VIX futures. The product provides target equity exposure of 85% to the S&P 500 using large-cap ETFs, while the remaining 15% goes to the volatility strategy through one or more swaps. The fund has $63.9 million in AUM and charges 70 bps in annual fees. It trades in small volumes of 6,000 shares a day on average.
Barclays ETN+ S&P VEQTOR ETN VQT
This is an ETN option tracking the S&P 500 Dynamic VEQTOR Index. VQT uses volatility futures contracts directly to hedge volatility. It increases allocation to the equity component as measured by the S&P 500 Total Return Index in times of low volatility. On the other hand, it increases volatility exposure as measured by the S&P 500 VIX Futures Total Return index and allocates entirely into cash if the index slumps 2% or more in the preceding five days. In this manner, the note manages to keep a check on volatility. The product has amassed $25.7 million in AUM and charges higher 95 bps in annual fees. The ETN sees paltry average daily volume of 4,000 shares.