Mimicking the VIX index
The Holy Grail of volatility investing would be an ETN or ETF that matched the movements of VIX—CBOE’s volatility index on the S&P 500. As a hedging vehicle it would be nearly ideal—negatively correlated to fast moves of the S&P 500 with a stable floor during quiet times. So far no one has figured how to economically offer a fund that does this. Instead …
