29/06/2010
Source releases a new ETF based on a volatility index
Source announced on Monday, 28 June that it has launched a new ETF, the S&P 500 VIX Futures Source ETF, a publicly-traded European volatility index-based fund, which replicates the S&P 500 VIX Short-Term Futures Total Return index. The CBOE Volatility index, or “VIX,” is the most widely-used benchmark index of implicit volatility worldwide, and is known as a market barometer. For ease of investment, the S&P 500 VIX Futures Source ETF is based on the S&P 500 VIX Short-Term Futures Total Return index, which replicates the performance of futures on the VIX. “The performance of the index is not exactly identical to that of the VIX index,” says a statement from Source, “but it is historically very highly correlated to its performance, and very highly decorrelated from that of the S&P 500.” The new S&P 500 VIX Futures Source ETF complies with the UCITS III directive, and is listed in US dollars on the London Stock Exchange. Characteristics Name: S&P 500 VIX Futures Source ETFBloomberg ticker: VIXS LN Currency of listing: USDManagement commission: 0.60% per yearMarket of listing: London Stock ExchangeName of underlying index: S&P 500 VIX Short-Term Futures Total Return indexTicker of underlying index: SPVIXSTR Domicile: Ireland
