ProShares launches "first" volatility ETFs

The ProShares VIX Short-Term Futures (VIXY) and VIX Mid-Term Futures (VIXM) ETFs both follow the CBOE Volatility Index (VIX), designed to reflect market expectations of near-term volatility of the S&P 500. Various ETNs already use the VIX as their underlying, including a number in Barclays' iPath range of ETNs, but ProShares Chairman and CEO Michael Sapir says that this strategy exposes investors to the issuer's credit risk. Sapir says: "Now, for the first time, investors can access volatility with a US exchange traded fund." The short-term ETF targets a constant, weighted-average ...