The ProShares VIX Short-Term Futures ETF (VIXY) is an exchange-traded fund designed to track the performance of short-term futures contracts linked to the CBOE Volatility Index (VIX). The ETF is managed by ProShares and trades under the ticker VIXY on the NYSE Arca.

Classified as a volatility ETF, the fund provides exposure to expected U.S. equity-market volatility through VIX futures contracts. Unlike traditional stock or bond ETFs, VIXY does not invest directly in securities but instead gains exposure through derivatives tied to market volatility expectations.

The ETF follows a passive investment approach and seeks to replicate the performance of the S&P 500 VIX Short-Term Futures Index, a benchmark composed of short-term VIX futures contracts that are continuously rolled to maintain exposure.

Diversification and sector exposure

VIXY provides exposure primarily associated with:

• VIX futures contracts.

• Market volatility.

• Financial derivatives.

• Risk-management strategies.

• U.S. equity markets.

• Market-stress protection.

• Tactical positioning.

• Hedging instruments.

The fund’s performance is directly tied to expectations regarding future volatility in the U.S. stock market, which are often influenced by movements in the S&P 500 and broader investor sentiment.

During periods of heightened uncertainty or market stress, VIX futures may experience significant gains. Conversely, during stable market environments, the futures structure can create performance headwinds due to the ongoing process of rolling contracts.

Structure and costs

VIXY shares trade on the secondary market on the NYSE Arca during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund invests primarily in VIX futures contracts and regularly rebalances its holdings to maintain exposure to the short-term segment of the volatility futures curve. The ETF charges a management fee as outlined in its prospectus and does not apply a performance fee.

Because it relies on derivatives and operates within a highly specialized market, VIXY may experience significantly greater price fluctuations than traditional ETFs and is also affected by futures-market dynamics and contract-roll costs.

History and evolution of the ETF

The ProShares VIX Short-Term Futures ETF was launched in 2011 to provide investors with an accessible way to gain exposure to implied volatility in the U.S. equity market. Since inception, the fund has been used by investors pursuing hedging strategies, risk-management objectives, and tactical positioning during periods of market uncertainty.

In recent years, developments such as shifting monetary-policy conditions, geopolitical tensions, economic disruptions, and episodes of elevated market volatility have continued to drive interest in products linked to the VIX and volatility futures markets.

Additional Information

ProShares VIX Short-Term Futures ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $221.92 million.

Over the past 12 months, ProShares VIX Short-Term Futures ETF recorded a return of -45.21%, with its price trading between $16.95 and $38.95 during the same period.

The ETF is traded under the ticker VIXY.