Next VXX Reverse Split? Prediction: February 2014
Vance Harwood | Aug 20, 2013 02:38AM ET
For a security doomed to decrease in value over time, iPath's S&P 500 VIX ST Futures ETN (VXX) does amazingly well. Its volume averages over 40 million shares per day and its assets under management have stayed above $1.1 billion for the last couple of years. Not bad for a product that has averaged a 64% annual loss since its inception in January 2009.
Barring a major stock market correction, I predict Barclays will reverse split VXX 4:1 in early February 2014.
According to its IndexUniverse article .
I suspect retail investors on the other hand are trying to hedge their equity holdings with VXX because it is one of the few securities that reliably goes up when the market is panicking. Unfortunately this strategy rarely works well. Unless your timing is very good owning enough VXX to effectively hedge your portfolio is prohibitively expensive.
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