Investors looking for momentum can keep VelocityShares Daily Inverse VIX Short-Term ETN XIV on their radar now. The fund recently hit a new 52-week high. Shares of XIV are up approximately 291.85% from its 52-week low of $22.05/share.
But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might be headed.
XIV in Focus
XIV focuses on providing -1x inverse exposure to VIX, Chicago Board Options Exchange (CBOE) Volatility Index. It charges 135 basis points in fees per year and has AUM of $760.92 million (see all Inverse Volatility ETFs here).
Why the Move?
The market fear gauge, VIX, has been on a tear lately. It hit a record low of 9.37 earlier this month and is currently hovering around 11. A bearish view on VIX indicates bullishness on the S&P 500, since the two forces move opposite each other. The market is into its second-longest bull cycle, running more than eight years and is reflective of market confidence. Hence, an inverse exposure to the market fear gauge has been performing well.
More Gains Ahead?
The fund has a weighted alpha of 206.2 and a 14-day standard deviation of 31.54%. Owing to the exceptional weighted alpha, still some promise seems to remain for those who want to ride this surging ETF a little further.
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VEL-INV VIX ST (XIV): ETF Research Reports
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Zacks Investment Research