Credit Suisse AG Announces Its Intent To Delist And Suspend Further Issuances Of Its VelocitySharesTM ETNs https://www.credit-suisse.com/about...nces-of-its-velocitysharestm-etns-202006.html
Wow.....suspending and delisting ...im having a feeling direxion and proshares are going to delist and suspend all trading in 2x and 3x etfs as well. Seems that's where its all headed. They don't want small investors being able to invest in "risk" ... These instruments are risky but you should know what you are getting into before investing.
TVIX is a perfect example of what's wrong with leveraged ETF's, a subject that comes up a lot. TVIX. Splits are as follows: 12/21/2012 1 for 10 08/30/2013 1 for 10 06/23/2015 1 for 10 08/09/2016 1 for 25 03/16/2017 1 for 10 06/08/2018 1 for 10 12/02/2019 1 for 10 All reverse splits, so that if you had 25 million shares on 12/20/12 you had 1 on 12/03/2019. Harsh shit. THEN, it was $38 per share in middle of February this year, and hit 1000 middle of march. HOWEVER, Split adjusted, that's still down from its November, 2011 price of(drumroll......) 2.8 BILLION dollars
Yes it decays overtime, but it would have been one of the most interesting plays of a lifetime if the fed had not printed trillions in cash since the financial collapse of 2008. Meaning volatility would have been very well above 100 for years and would have probably averaged 40+ over the last decade if the fed never ever ever saved the markets the thousands and thousands of times that is did and still has. Yes thousands of times because nearly 99% of the time since TVIX became tradeable the fed has in some form or another contributed to every single historical high on wallstreet and every VIX reading below 15. Without the fed the markets would be 80% lower with a vix reading well above triple digits as of this very second
I'm going to miss daytrading TVIX, will go back to VXX UVXY for volatility. Hopefully proshares and direxion will continue offering 2x 3x instruments.
I have a feeling that they will eventually rid of allllll 2x and 3x etfs. I hope they don't but it seems they will. They will probably keep only the 1x inverse etfs. VXX is a good one but UVXY will probably be going away by end of year. I dont think these companies offering these investment instruments want to deal with the sec and lawsuits. Funny because you can trade penny stocks and pink sheet stocks all day long.
This is aggravating. Shorting TVIX has been one of my single largest sources of profit over the years.
ZIV isn't even leveraged, interesting. I guess they don't want the headache of a VIX doubling in a day, which seems possible looking back at March. Now the only inverse VIX ETF left is SVXY, which is actually half leverage.