Source and Nomura have partnered to roll out an ETF that will allow investors to take a tactical approach to volatility, Financial Times reports. The Nomura Voltage Mid-Term Source ETF will merge varying exposures to volatility futures and short-term U.S. Treasuries. The fund aims to outperform its benchmark by determining when to decrease or increase the volatility allocation. The ETF will also invest in three-month U.S. Treasuries to minimize the cost of contango during periods when volatility is low. Both the companies will adjust the balance between VIX futures and Treasuries in the ETF on a daily basis.

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