(UVIX) 2x Long VIX Futures - Ratings and Ratios

The UVIX ETF offers 2x leveraged exposure to the daily performance of a portfolio holding long positions in the first and second month VIX futures contracts. The VIX, often referred to as the fear index, measures implied volatility in the S&P 500, reflecting market uncertainty. This ETFs strategy involves daily rebalancing to maintain consistent exposure, ensuring the futures contracts maturity remains aligned with the target horizon. The index calculation occurs at 4:00 PM ET, derived from the average futures prices between 3:45 PM and 4:00 PM ET.

UVIX trades on the BATS exchange, classified under leveraged equity in the trading category. With an average 20-day volume of 8.72 million and AUM of $395.16 million, it indicates moderate liquidity and investor interest. Technically, UVIXs last price of $32.78 is below its 50-day SMA of $31.48 but significantly below the 200-day SMA of $47.88, signaling a bearish trend. The ATR of 2.53 reflects moderate recent volatility.

Over the next three months, UVIX may experience heightened volatility due to the increasing ATR, suggesting ongoing market instability. However, the significant contango in the VIX futures curve poses a challenge for long positions, potentially offsetting gains despite elevated volatility. The ETFs performance will likely hinge on the balance between these factors, making it a volatile yet responsive tool for hedging against market downturns.