Volatility funds come in two guises: exchange traded notes (ETNs), which track volatility indices such as the CBOE VIX, and exchange traded funds (ETFs), which aim to minimise volatility by tracking indices such as MSCI World Minimum Volatility. Investors in volatility ETNs have lost money in recent years while investors in volatility ETFs have enjoyed market-beating returns with lower risk.
To continue reading, register today
to enjoy limited access to the following:
- Daily trading news
- Funds coverage
- Features on big investment themes
- Comprehensive companies coverage
- Economic analysis