ARB Trading Group affiliate Dynamic Shares today announced the launch of its first ETF, which is focused on calculated volatility shorting. The Dynamic Short Short-Term Volatility Futures ETF is now trading on the New York Stock Exchange as of January 13.
Dedicated to democratizing access to sophisticated trading strategies, WEIX is designed to mitigate the risks inherent in selling volatility via traditional passively managed short VIX short-term futures ETFs by seeking to manage its notional exposure to shorting the S&P 500 VIX Short-Term Futures Index. The fund seeks to add value to portfolios while preserving capital during extremely volatile markets by using a responsive approach to shorting volatility, adjusting exposure as needed so investors don’t have to.
WEIX offers convenient access to an institutional-caliber investment strategy that attempts to capitalize on a structural opportunity to sell volatility that is created by equity hedging imbalances and gives market participants the ability to short volatility as an investment, not just a trade.
“With equity valuations near all-time highs and bond yields near all-time lows, we believe attractive returns will be difficult to achieve in the coming years,” said Amnon Baazov, co-founder and CIO of Dynamic Shares in the press release announcing the launch of the fund. “Using the skills and technologies we have honed in our proprietary trading firm, we aim to efficiently harvest the volatility premium that exists in the marketplace using a mathematical and systematic approach to shorting volatility.”
Mark Downing, chief product officer of Dynamic Shares, added in the release: “With a current market environment reminiscent of the peaks of the Roaring ‘20s and the Dot-Com bubbles, we believe investors are looking for investment alternatives with low correlation to equity indices that also have the potential for attractive returns and capital preservation in highly volatile markets. We created WEIX in an attempt to provide just that solution – a sophisticated and measured approach to selling VIX futures in the accessible ETF wrapper.”
The fund has an expense ratio of 1.85%.
For more information about Dynamic Shares, please visit DynamicSharesETF.com.
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