Overview
Description
WisdomTree S&P 500 VIX Short-Term Futures 2.25x Daily Leverage is an exchange-traded product designed to provide investors with amplified exposure to the volatility of the US stock market as measured by the CBOE Volatility Index (VIX). This product offers 2.25 times leverage, meaning it aims to capture 225% of the daily fluctuation of VIX short-term futures. Primarily utilized by sophisticated investors seeking to hedge equity exposure or speculate on increased market volatility, this financial instrument allows participation in the dynamic movements of market volatility with significant sensitivity.
Notable for its role in portfolio diversification and risk management, VILX provides a tool for capitalizing on periods of market stress which often coincide with heightened volatility. The product is largely influenced by industries linked to financial services and investment management. Its presence in the market is essential for investors interested in tactical positioning, offering an opportunity to manage volatility expectations and explore strategies around shifts in market sentiment. It's crucial for users to understand the inherent risks and short-term nature associated with leveraged products to effectively integrate them into broader financial strategies.
About
Instrument type
ETF
Country
United Kingdom
MIC code
XLON