ETF #scorecard, ProShares VIX Short-term Futures (VIXY: nyse)

Introductory comments:

ETF: The majority of the fund’s assets are VIX futures contracts that call for a future cash settlement.  Investors buy VIX futures if they belive the S&P 500 will become more volatile and sell if they believe the S&P 500 will become smooth.  The ETF is intended for use as a short-term investment, or for investment diversification, but not as a long-term investment.

Index: The VIX futures short term index (Bloomberg SPVXSPID:IN) measures the rolling position of first & second month VIX futures contracts.  The VIX futures Index is not identical to the well known “VIX”.

CAUTION: The VIX is not the fund’s underlying index.  Don’t expect the fund to track either the VIX or the volatility of the S&P 500.

Investment Strategy: Management’s propietary model determines the trades needed to achieve daily returns that match the performance of the index.

Scorecard:

The following tables describe the fund and its primary risk-benefit.  References to the data are provided at the end of this article.

SNAPSHOT, December 31, 2011

SCORECARD

SCORECARD

Copyright © 2012 Douglas R. Knight

References

1.  ETF snapshot in XTF.com

2.  ETF snapshot and SEC filings in Morningstar.com

3.  Explanation of ETF scorecard with references