For investors seeking momentum, iPath Series B S&P 500 VIX Short-Term Futures ETN VXX is probably on the radar. The fund just hit a 52-week high and is up 128.09%% from its 52-week low price of $39.98/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
VXX in Focus
The underlying S&P 500 VIX Short-Term Futures Index Total Return offers exposure to a daily rolling long position in the first and second month VIX futures contracts and reflects views of the future direction of the VIX index at the time of expiration of the VIX futures contracts comprising the Index. The product charges 89 bps in annual fees (See: All Volatility ETFs).
Why the Move?
Volatility has been rising lately, given the introduction of reciprocal tariffs by President Trump. The tariffs have resulted in an escalating trade war and has also increased the likelihood of a global recession. The CBOE Volatility Index, also known as the fear gauge, which represents the volatility among market participants, is currently above 50, marking a significant jump of around 195.16% from late March.
More Gains Ahead?
VXX might continue its strong performance in the near term, with a positive weighted alpha of 29.30 (as per Barchart.com), which gives cues of a further rally.
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iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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