Source unveils tactical volatility ETF

The Nomura Voltage Mid-Term Source ETF, listed on the London Stock Exchange, allows investors to capture volatility spikes while decreasing the costs associated with a constant long volatility position. The underlying Voltage index, maintained by Nomura, takes a volatility-adjusted position, allocating between the S&P 500 VIX Mid-Term Futures index and three-month US treasury bills. As the relative volatility of the VIX increases, so does the exposure taken by Voltage, from a minimum of 0% up to a full 100%. Rebalancing happens on a daily basis, which Source says creates a reactive...