Horizons BetaPro (HBP) has launched the first Canadian ETFs to track the S&P VIX 500 Short-Term Futures index, a measure of US stock market volatility.
The new launch includes the Horizons BetaPro S&P 500 VIX Short-Term Futures ETF - the Single VIX - and the Horizons BetaPro S&P 500 VIX Short-Term Futures Bull Plus ETF - the Double VIX.
The Double VIX ETF is breaking additional ground as the world's first two-times leveraged ETF on the S&P VIX S-T Index, according to HBP.
BetaPro president Howard Atkinson says the launch means Canadian investors need not necessarily be afraid of stock market volatility.
The S&P VIX S-T index is a volatility benchmark comprised of first and second month futures contracts based on the Chicago Board of Exchange's VIX index, and is designed to reflect the market's expectation of future volatility within the US stock market.
Atkinson says: "You cannot invest directly in CBOE's VIX index, but our ETFs will allow investors to access the volatility of the S&P 500 index."
The company says that sharp spikes in market volatility only occur over short periods of time and stresses that the funds should be used for short periods of time and monitored on a daily basis.
As a leveraged fund, the HBP Double VIX ETF does not seek to achieve its investment objective over a period greater than one day.
Both funds were listed yesterday on the Toronto Stock Exchange and will hedge US dollar losses or gains back to the Canadian dollar as well as possible.
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m