iPath Series B S&P 500 VIX Short
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About
iPath Series B S&P 500 VIX Short (VXX) is an exchange-traded note that provides exposure to futures contracts on the CBOE Volatility Index, commonly known as the VIX. As an exchange-traded note, it is structured as a debt instrument whose return is linked to an index rather than as a fund that holds a basket of assets directly. It is known for offering investors a way to gain exposure to short-term volatility futures.
An important feature of this product is what it tracks. It offers exposure to futures contracts of specified maturities on the VIX index, and not direct exposure to the VIX index itself or to its spot level. In other words, its performance is tied to the prices of VIX futures contracts rather than to the current value of the volatility index that those futures reference. This distinction matters because futures contracts can behave differently from the underlying index over time.
The underlying index that the note follows is designed to provide exposure to one or more maturities of futures contracts on the CBOE Volatility Index. By referencing these futures, the product is built to reflect expectations about future volatility in the broad U.S. equity market, which the VIX is meant to measure.
Because it is an exchange-traded note focused on volatility futures, the value of iPath Series B S&P 500 VIX Short moves with the futures contracts that make up its index. Its exposure is concentrated on the shorter end of the maturity range relative to longer-dated alternatives. The product is structured around tracking these specified futures maturities rather than holding the index or its components.