The iPath S&P 500 VIX Short Term Futures ETN (VXX) underperformed all other non-leveraged, non-inverse exchange traded products in the U.S. today on a percentage basis, producing a -3.13% one-day return and trailing the wider markets by a total of 3.67 percentage points.

Behind The Losses

VXX closed today at $17.64 per share, down $0.57 (-3.13%). Putting this move in context, the S&P 500 index — largely considered the most popular and useful benchmark for equity performance — closed up $1.26 (+0.54%) on the day.

VXX’s trading volume today was a total of 45,443,144 shares, which was an increase of 16% versus its average daily trading volume of 39,252,109. Rising trading volume generally an indicator of increased demand for a particular security, and is typically associated with a specific news event or trend that draws investors into or out of specific asset classes, or sectors or subsectors within those classes.

Including any dividends as well as today’s losses, VXX has now fallen a total of -30.85% year-to-date, versus a 4.13% gain in the S&P 500 during the same timeframe.

A Look Under The Hood

iPath S&P 500 VIX Short Term Futures ETN is a Alternative-focused product issued by iPath. Its expense ratio of 0.89% makes it the #3 cheapest ETF among 11 total funds in the Volatility ETFs category.

VXX currently boasts $999.07M in assets under management (AUM), placing it #1 of 11 ETFs in its category, and #293 of 1915 total ETFs in the U.S. exchange traded universe.

The investment objective of the iPath S&P 500 VIX Short-Term Futures ETN seeks to provide exposure to the S&P 500 VIX Short-Term Futures Index Total Return. The Index is designed to provide access to equity market volatility through CBOE Volatility Index futures. The Index offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects market participants’ views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index.

VXX SMART Grade

VXX currently has an ETF Daily News SMART Grade of F (Strong Sell), and is ranked #5 of 11 funds in the Volatility ETFs category.

For more information about this ETF, including full ratings, news, data, and more, please visit VXX’s ticker page.

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