iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX)

Frequently Asked Questions About iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX)

Are there performance fees for VXX?

As an exchange-traded note (ETN), VXX does not typically charge performance fees, but it does carry a management fee that reflects operating expenses. Investors should focus on the total cost of ownership, including any trading commissions charged by brokers, to fully understand the cost implications when investing in VXX.

Can VXX be used as a hedge?

Yes, VXX can be used as a hedging tool in investment portfolios, particularly during times of market uncertainty or expected volatility. Because VXX tends to rise when the market falls, it may provide a protective counterbalance to long equity positions, making it an attractive option for risk management among investors concerned about market downturns.

How does VXX compare to other volatility products?

VXX is one of several products available for trading volatility, including other ETNs, ETFs, and options on VIX futures. Compared to direct VIX futures or options, VXX provides a simplified way to achieve exposure to volatility without the complexities of futures trading. However, it's important to note that VXX is subject to the effects of contango and backwardation differently than other products, which may affect performance.

How does VXX generate returns?

VXX generates returns by tracking the performance of futures contracts on the CBOE Volatility Index (VIX), which measures market expectations of near-term volatility based on S&P 500 index options. The ETN's returns are derived from a roll yield associated with the upward-sloping nature of the VIX Futures curve, with investors typically gaining exposure through the purchase and sale of these contracts, ideally generating positive returns during periods of market stress.

How does VXX impact an investment portfolio?

Incorporating VXX into an investment portfolio can impact performance by providing exposure to volatility, which can act as a diversification tool. Its unique behavior in inversely correlating with broader market movements allows investors to potentially offset losses in equities during market downturns. However, its volatile nature also means that it can contribute to overall portfolio risk if not managed carefully.

How is VXX affected by market events?

Market events such as economic reports, geopolitical incidents, and changes in monetary policy can significantly impact investor sentiment and lead to increased volatility. When such events occur, demand for VXX typically rises as investors seek protection against potential declines in equity markets, thus driving the price and performance of the ETN in alignment with these broader market dynamics.

How is VXX traded on the exchanges?

iPath Series B S&P 500 VIX Short-Term Futures ETN trades on stock exchanges like other equities, allowing investors to buy and sell shares throughout the trading day at market prices. This means investors can easily acquire VXX through their brokerage accounts, benefiting from its liquidity and ease of trade, while also being subject to standard brokerage commissions.

How often does VXX achieve its stated objective?

VXX's stated objective, which is to deliver returns corresponding to the performance of the S&P 500 VIX Short-Term Futures Index, can vary significantly over shorter time frames due to the unpredictable nature of volatility. While VXX may work as intended during spikes in expected market volatility, prolonged periods of low volatility often result in underperformance, making it less reliable as a long-term investment vehicle.

Is VXX suitable for long-term investment?

VXX is generally not considered suitable for a long-term investment strategy due to its inherent design that exposes it to short-term volatility and decay. Investors using VXX should typically focus on short-term trading strategies, as holding it over longer periods can lead to potential losses due to the structure of the underlying futures and the nature of volatility trading.

What are the risks associated with investing in VXX?

Investing in VXX carries unique risks primarily due to its dependence on the volatility of the S&P 500 Index. Risks include potential losses in the event of low volatility environments where VXX might underperform or experience significant decay due to its structure of rolling futures contracts. Additionally, if the market experiences prolonged upward trends in asset prices, investors in VXX could face substantial losses as the ETN may not perform well against such conditions.

What does iPath Series B S&P 500 VIX Short-Term Futures ETN (NYSE:VXX) do?

iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) is designed to provide investors with exposure to the performance of the S&P 500 VIX Short-Term Futures Index. This index reflects the returns that are potentially available through an unleveraged investment in the S&P 500 VIX Short-Term Futures, which track the volatility of the S&P 500 Index. As such, VXX is often utilized by traders and investors looking to hedge against market downturns or to speculate on future volatility.

What factors influence the price of VXX?

The price of VXX is influenced by various factors, including changes in market volatility, the pricing of VIX futures, supply and demand dynamics, and broader macroeconomic indicators. Events that increase investor anxiety or uncertainty, such as geopolitical tensions or economic downturns, typically drive demand for VXX, thereby increasing its price.

What is the average trading volume of VXX?

The average trading volume of iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) varies but typically sees significant daily trades due to its popularity among volatility traders and market participants. As a highly traded ETN, it offers investors ample liquidity, enabling them to enter and exit positions with relative ease. It can also be subject to surges in trading volume during periods of heightened market volatility.

What is the expense ratio of VXX?

The expense ratio of iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) is typically low compared to actively managed funds, as it is an exchange-traded note. However, expenses can include management fees and associated operational costs, which are reflected in its yield. Investors should evaluate the expense ratio alongside performance metrics when considering VXX for their investment options.

What is the role of VXX in a trading strategy?

VXX serves as a tactical trading vehicle in various strategies, particularly for hedging against market risk or speculating on price movements during volatile periods. Traders might use VXX to exploit short-term market inefficiencies or to construct hedges within diversified portfolios, employing it as a complementary tool to balance exposure across various asset classes.

What is the tax treatment of gains from VXX?

Gains from trading or investing in iPath Series B S&P 500 VIX Short-Term Futures ETN are generally treated as capital gains for tax purposes. However, different rules may apply depending on an investor's situation, and it's vital for investors to consult with tax professionals to understand the specific tax implications of investing in volatility products such as VXX.

What should investors know before investing in VXX?

Before investing in VXX, investors should thoroughly understand the nature of volatility trading, the ETN's structure, and the associated risks, including the potential for loss during low volatility environments. Recognizing that VXX is primarily a short-term trading tool rather than a long-term hold is crucial. Additionally, investors should conduct thorough research and consider their market outlook and risk tolerance.

Who are the primary investors in VXX?

The primary investors in iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) typically include both retail and institutional traders. Retail investors often use VXX as a hedge against risks in their broader portfolios, while institutional investors might utilize it for short-term trading strategies and to manage exposure to market volatility.

Who issues the iPath ETNs?

The iPath Series B S&P 500 VIX Short-Term Futures ETN is issued by Barclays Bank PLC. As an exchange-traded note (ETN), it offers a way for investors to gain exposure to the VXX index without needing to directly hold the underlying futures, thereby simplifying the process of trading volatility products for retail investors and institutions.

What is the current price of iPath Series B S&P 500 VIX Short-Term Futures ETN?

The current price of iPath Series B S&P 500 VIX Short-Term Futures ETN is 34.62

When was iPath Series B S&P 500 VIX Short-Term Futures ETN last traded?

The last trade of iPath Series B S&P 500 VIX Short-Term Futures ETN was at 8:00 pm EDT on October 13th, 2025

What is the market capitalization of iPath Series B S&P 500 VIX Short-Term Futures ETN?

The market capitalization of iPath Series B S&P 500 VIX Short-Term Futures ETN is 11.03M

How many shares of iPath Series B S&P 500 VIX Short-Term Futures ETN are outstanding?

iPath Series B S&P 500 VIX Short-Term Futures ETN has 318.71K shares outstanding.