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This ETN offers a way to establish inverse exposure to an index comprised of volatility futures, potentially profiting from some of the structural issues that result in poor long-term performance among many of the products in the Volatility ETFdb Category. This ETP may be appealing to some as part of a long-term portfolio given the potential for capital appreciation and some diversification benefits as well. But it should be noted that because the VIX often experiences big swings, this product can also exhibit significant short-term volatility. XXV is an ETN, meaning that investors are exposed to the credit risk of the issuing bank but don't have to worry about the impact of tracking error on returns. Also note that XXV is linked to an index comprised of VIX futures, and as such this product won't necessarily reflect movements in the spot VIX. Because significant contango often exists in VIX futures markets, there can be significant gaps between changes in the spot price and returns available through a futures based strategy (such as the one implemented by the index underlying this product). XXV is actually constructed to exploit the contango in VIX futures markets, delivering short exposure to an index that often sees significant return erosion as a result of the monthly roll process. Volatility is a complex asset class, and XXV is a somewhat complicated product. Those who don't fully grasp the investment thesis behind this product should likely stay away. There are several products that offer inverse exposure to VIX indexes, but these ETPs are far from identical. XIV resets exposure on a daily basis, while both XXV and IVO seek to offer inverse exposure over the life of the notes. But these periods are different, and as such the participation between these two products can vary significantly. Be sure to consider the participation metric of both XXV and IVO before establishing a position (and be sure to have a firm grasp on what this number means about the potential returns and risks).
The adjacent table gives investors an individual Realtime Rating for XXV on several different metrics, including liquidity, expenses, performance, volatility, dividend, concentration of holdings in addition to an overall rating. The "A+ Metric Rated ETF" field, available to ETFdb Pro members, shows the ETF in the Inverse Volatility with the highest Metric Realtime Rating for each individual field. To view all of this data, sign up for a free 14-day trial for ETFdb Pro. To view information on how the ETFdb Realtime Ratings work, click here.View the Category Report
The following tables and charts contain in-depth metrics for this ETF and compare it to similar peer ETFs within its ETFdb.com Category.
This ETF is not currently available for commission free trading on any platforms.
There are 0 other ETFs in the Inverse Volatility ETFdb.com Category that are also eligible for commission free trading:
This section shows how this ETF has performed relative to its peer group ETFdb.com Category.
The following charts can be customized to display historical performance in a number of different formats, including line charts, bar charts, and candlesticks. Time periods can be adjusted to increase or decrease the period shown, ranging from five minutes to several months.
The following chart also includes the option to compare the performance of XXV relative to other ETFs and benchmarks or to include indicators such as Bollinger Bands, relative strength, and moving averages.
This section shows how the volatility of this ETF compares to the peer group ETFdb.com Category.
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Source: LSEG Information Services (US), Inc. (“LSEG”) © LSEG 2016. All rights in the XTF data, ratings and / or underlying data contained in this communication (“the XTF information”) vest in LSEG and/or its licensors. Neither LSEG nor its licensors accept any liability arising out of the use of, reliance on or any errors or omissions in the XTF information. No further distribution of the XTF information is permitted without LSEG’s express written consent. LSEG does not promote, sponsor or endorse the content of this communication.