ProShares VIX Short-Term Futures ETF

The ProShares VIX Short-Term Futures ETF (trades under ticker symbol VIXY) provides investors with an instrument to potentially profit from increases in the expected volatility of the S&P 500. Operational since 2011 and denominated in USD, this fund primarily targets exposure to the S&P 500 VIX Short-Term Futures Index, which itself is designed to reflect implied volatility in the broad market as measured by S&P 500 Index option prices. VIXY achieves its investment objective by holding financial instruments that, in combination, provide daily long exposure to the performance of the index. This ETF can suit investors seeking hedging strategies against sudden market swings or volatility spikes in equities portfolios. As an ETF that focuses on short-term futures, it operates with a unique structuring. Accordingly, it is essential to understand that VIXY does not track the performance of the CBOE Volatility Index (VIX index) and so, its performance can significantly differ from the shorter-term fluctuations of this index. Given its specialized focus and operation mode, VIXY might be most appropriate for sophisticated investors who comprehend futures investing's inherent complications and risks. Potential investors are thus advised to conduct due diligence and thoroughly review its offering materials before proceeding with investments.