iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ)

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

Are dividends paid on VXZ?

As an exchange-traded note, VXZ does not pay dividends as it does not represent ownership in a company that generates profits. Instead, VXZ's performance and potential returns are solely based on the movements of the underlying VIX futures index. Investors are advised to consider the capital appreciation potential when investing in VXZ rather than expecting income through dividends.

Can I hold VXZ long-term?

While investors can hold VXZ long-term, it is important to note that it is typically more suited for short-term trading strategies rather than long-term investments. VIX futures are known for their contango and backwardation characteristics, which often lead to decay in value over time when held through multiple roll periods. Therefore, potential long-term investors should be cautious and consider their risk tolerance and investment objectives.

Can VXZ be shorted?

Yes, VXZ can be shorted like other stocks or exchange-traded products. Short selling involves borrowing shares of VXZ and selling them with the intention of repurchasing them at a lower price later. This can be a strategy for investors who believe that volatility will decrease or want to hedge long positions in other equities. As with all short selling, this strategy carries significant risks, including margin calls and potential unlimited losses.

How does VXZ compare to other volatility products?

Compared to other volatility products, such as the iPath S&P 500 VIX Short-Term Futures ETN (VXX) or VIX options and futures, VXZ provides exposure to mid-term VIX futures, which can offer different risk and return characteristics. The mid-term focus allows investors to mitigate some of the rolling costs associated with short-term VIX products. However, investors should assess their goals, risk tolerance, and market conditions to determine the most appropriate product for their strategy.

How does VXZ track market volatility?

VXZ tracks market volatility by following the performance of the S&P 500 VIX Mid-Term Futures Index. This index consists of VIX futures contracts that are selected based on a rolling monthly strategy. As market conditions change, particularly during times of uncertainty or fear, the prices of VIX futures tend to rise, making VXZ a tool for investors looking to hedge against market volatility or to take advantage of spikes in uncertainty.

How is VXZ affected by market conditions?

VXZ is significantly affected by market conditions, particularly investor sentiment and economic indicators. During times of uncertainty or heightened market stress, volatility tends to rise, which can lead to increases in VXZ's value. Conversely, when the market is stable or rising, volatility usually decreases, leading to potential declines in VXZ's price. This inverse relationship makes VXZ a unique financial instrument that reacts differently than traditional equities.

What are ETNs?

Exchange-Traded Notes (ETNs) are unsecured debt securities issued by financial institutions that track the performance of a specific index or benchmark. Unlike traditional stocks, ETNs do not represent ownership in a company; instead, they provide investors with exposure to the performance of an underlying asset or index without requiring them to invest directly in that asset. ETNs are traded on exchanges, like stocks, and their prices fluctuate throughout the trading day.

What are the risks associated with investing in VXZ?

Investing in VXZ comes with several risks, including market risk, credit risk, and liquidity risk. Market risk reflects the potential for loss due to fluctuations in the broader market and VIX investments’ unique behavior. Credit risk is inherent as VXZ is an unsecured debt instrument with exposure to the issuing bank, Barclays. Furthermore, liquidity risk can occur in times of market stress, affecting the ability to buy or sell shares at desirable prices.

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

iPath Series B S&P 500 VIX Mid-Term Futures ETN (NYSE:VXZ) is an exchange-traded note designed to provide investors with exposure to the S&P 500 VIX Mid-Term Futures Index. This index is composed of futures contracts on the VIX, which is a measure of market volatility based on S&P 500 index options. By tracking this index, VXZ allows investors to gain exposure to fluctuations in market volatility without the complexities of trading futures contracts directly.

What financial metrics should I consider when investing in VXZ?

When investing in VXZ, it is essential to consider several financial metrics, including performance relative to the S&P 500, volatility decay, trading volume, and the current expense ratio. Understanding these metrics can help investors gauge VXZ's efficacy as a hedging tool against market downturns and make informed decisions based on their unique investment strategies and market outlook.

What is the correlation between VXZ and the S&P 500?

The correlation between VXZ and the S&P 500 can be negative, particularly during periods of market stress or downturns. As the S&P 500 declines, market volatility usually increases, which can lead to a rise in VXZ's value, providing a hedge against significant market dips. Conversely, during stable or bullish trends, VXZ may decline in value, as market volatility is lower.

What is the expense ratio for VXZ?

The expense ratio for VXZ is relatively low, making it an attractive option for investors who wish to gain exposure to volatility without incurring high management fees. As of the last available data, the expense ratio is typically around 0.89%, which is standard for many exchange-traded products, and helps to keep costs manageable for long-term investors.

What is the history of VXZ?

The iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) was launched in 2010, providing investors with a novel way to gain exposure to volatility through mid-term futures contracts on the VIX. Its creation was part of the broader trend of financial innovation that delivered various products designed to help investors manage risk and capitalize on changing market dynamics. Over the years, VXZ has become a go-to vehicle for those looking to invest in market volatility.

What is the typical liquidity of VXZ?

The typical liquidity of VXZ can vary based on market conditions, but it generally has decent trading volumes, allowing for relatively smooth transactions throughout the trading day. However, like other exchange-traded products, liquidity can decrease during times of heightened market volatility or stress. Investors should monitor trading volumes and bid-ask spreads to ensure they can execute trades efficiently without incurring significant costs.

What trading strategies can be employed with VXZ?

Traders can employ various strategies using VXZ, including hedging existing equity positions, speculation on future volatility trends, or utilizing it as a tactical asset within a diversified portfolio. Some investors may use VXZ for short-term trades to capitalize on spikes in volatility, while others may engage in longer-term views on market conditions or macroeconomic events. Understanding the characteristics of volatility products is essential for employing effective trading strategies.

Where can I trade VXZ?

VXZ is traded on major stock exchanges like the New York Stock Exchange (NYSE), making it accessible to investors through most brokerage platforms that offer trading in U.S. exchange-listed securities. Investors should ensure that their brokerage accounts are set up for trading ETFs and ETNs and be mindful of any fees associated with buying and selling these products.

Who issues the iPath Series B ETNs?

The iPath Series B ETNs, including the iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ), are issued by Barclays Bank PLC. Barclays is a well-known financial institution that provides a range of banking and financial services, and its issuance of ETNs allows investors to obtain exposure to various asset classes and strategies.

Who should consider investing in VXZ?

VXZ may be considered by investors who are seeking to hedge against market volatility or looking for a way to capitalize on market fluctuations. It is typically suited for sophisticated investors or traders with a good understanding of the volatility market, as well as those looking to diversify their investment portfolios with products that have a different risk profile from traditional stocks and bonds.

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

The current price of iPath Series B S&P 500 VIX Mid-Term Futures ETN is 56.04

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

The last trade of iPath Series B S&P 500 VIX Mid-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 Mid-Term Futures ETN?

The market capitalization of iPath Series B S&P 500 VIX Mid-Term Futures ETN is 359.22K

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

iPath Series B S&P 500 VIX Mid-Term Futures ETN has 6.41K shares outstanding.