VIDEO: VTS 50/50 Combined Volatility Fund – XIV/VXX and ZIV/VXZ
Investing in the various volatility products that have been introduced in recent years is exciting stuff and has certainly proved successful for many who have been open to new ideas in the investment world. However nothing is without it’s drawbacks, and one of the realities of investing in volatility is that drawdowns can be larger than traditional investing.
With thorough analysis of the volatility metrics we can avoid most of them, but unfortunately we can’t avoid them all and we do get hit from time to time. This is why at Volatility Trading Strategies we offer two different strategies with different risk profiles.
VTS Tactical Volatility, while still very conservative in nature, targets the front two months of the VIX futures curve by tactically allocating to either the XIV, cash, or VXX and because of this can see larger day to day movements.
VTS Conservative Vol targets the 4th to 7th month of the VIX futures curve by tactically allocating to either ZIV, cash, or VXZ and has significantly reduced drawdowns over time.
Combining them both into one fund may be the best of both worlds, both performance and reduced risk. Please enjoy the video below, and if you have any questions at all email me anytime:
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