Fri, Nov 27, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

VelocityShares launches two hedged equity ETFs

Tuesday, June 25, 2013

Bailey McCann, Opalesque New York:

VelocityShares LLC, developer of exchange traded products (ETPs) has launched two new exchange traded funds (ETFs) providing a sophisticated long/ short volatility strategy combined with a large cap equity allocation. Both VelocityShares Volatility Hedged Large Cap ETF (SPXH) and VelocityShares Tail Risk Hedged Large Cap ETF (TRSK) went live this morning. The announcement follows the firm's may licensing of the VelocityShares Volatility Hedged Large Cap Index and the VelocityShares Tail Risk Hedged Large Cap Index.

The new ETFs are indended to combine an 85% exposure to a US large cap equity portfolio with a 15% exposure to a volatility strategy, rebalanced every month. Both volatility strategies are designed to provide long/short exposure to VIX futures and potentially benefit from the interaction between the dynamics of the VIX futures curve and the convexity generated by using daily resetting instruments.

The launches are the next step in for the firm which has other products planned for later in the year. TRSK utilizes a volatility strategy which tries to hedge tail risk events in the S&P 500, at a potentially higher cost during normal market conditions, by targeting a slightly long volatility bias. SPXH utilizes a volatility strategy which also tries to hedge large volatility events in the S&P 500, while retaining upside potential during normal market conditions, by targeting a neutral volatility bias. The products are......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November