New ETN Allocates Capital Between Equities and Existing Volatility Product
optionMONSTER submits:
By Chris McKhann
The line-up of volatility products available to retail traders continues to expand, as Barclays has rolled out its S&P VEQTOR ETN (VQT).
As the first dynamic volatility fund, VQT will be very interesting to follow. It is comprised of a long S&P 500 position, a long VXX Short Term VIX Futures ETN position and cash, and dynamically allocates among them according to a formula based on realized and implied volatility.
