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Volatility ETNs Surged In August

Volatility exchange-traded notes soared in August.

Volatility exchange-traded notes (ETNs) soared in August, Investors Business Daily reports. The IPath S&P 500 VIX Short-Term Futures ETN, which rises when volatility in the broader markets increases or is expected to increase, rose 66% last month.

ETFs tracking longer-term contracts, such as the IPath S&P 500 VIX Mid-Term Futures ETN, grew 29%. The ETN tracks exposure to a daily rolling long position in the fourth, fifth, sixth and seventh month VIX futures contracts on the S&P 500. The IPath DJ-UBS Coffee ETN jumped 19%. It corrected 26% from peak to trough and developed a bullish double-bottom base and has broken out past a 71.66 buy point.

Click here for the story from Investors Business Daily.

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