VXZ (iPath S&P 500 VIX Mid-Term Futures ETN)

VXZ is long direction, medium term VIX ETN. The one currently trading is Series B, which originally traded as VXZB (before Series A expired on 30 January 2019).

VXZ Exposure and Basic Characteristics

VXZ is the most liquid exchange traded note targeting longer maturity VIX futures. It is provided by iPath (Barclays) and designed to track the performance of S&P500 VIX Mid-Term Futures Index (its total return version, Bloomberg ticker SPVXMTR).

VXZ has the same target exposure as VIXM (by ProShares) and VIIZ (by VelocityShares, delisted). It differs from the popular VXX (also by iPath) in targeted futures maturity. Due to the longer maturity, VXZ tends to move more differently from the spot VIX (CBOE Volatility Index) compared to VXX and it is usually less volatile.

Direction: Long, unleveraged

Underlying index: S&P500 VIX Mid-Term Futures Index TR

Exposure: The middle part of the VIX futures curve (combination of long positions in the fourth, fifth, sixth, and seventh VIX futures contract months – rolling from the fourth to the seventh to maintain constant five month maturity)

VXZ options: Available, but very illiquid

Product type: ETN (exchange traded note)

Issuer: Barclays Bank PLC

Provider: Barclays iPath

Inception date: 17 January 2018

Expiration date: 23 January 2048

VXZ vs. VXZB

The original VXZ started on 29 January 2009 and expired on 30 January 2019. Like with the better known VXX, Barclays issued a second instance, "Series B", which started trading on 17 January 2018.

Therefore, for about a year, both series traded simultaneously – Series A under its old symbol VXZ and Series B under a temporary symbol VXZB. After Series A expired, Series B symbol changed to VXZ.

Series B is due to expire on 23 January 2048, so another transition like this won't be necessary for a long time.

Official Information and Links

The iPath S&P 500 VIX Mid-Term Futures ETN is designed to provide investors with exposure to the S&P 500 VIX Mid-Term Futures Index Total Return. ... The S&P 500 VIX Mid-Term Futures Index Total Return is designed to provide access to equity market volatility through CBOE Volatility Index futures. The Index offers exposure to a daily rolling long position in the fourth, fifth, sixth and seventh month VIX futures contracts and reflects the implied volatility of the S&P 500 at various points along the volatility forward curve.

VXZ product page: https://ipathetn.barclays/details.app;instrumentId=341615

VXZ Quotes, Assets, and Trading Volume

Yahoo Finance: finance.yahoo.com/quote/VXZ

Bloomberg.com: www.bloomberg.com/quote/VXZ:US

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