How Long Before VIX ETF Investors Surrender?

Investors holding positions in exchange-traded notes that track the Chicago Board Options Exchange Volatility Index will be unable to hold on to their investments indefinitely thanks to the ETFs’ high roll costs and will have to capitulate at some stage. This will see a natural dampening of the recent expensive skew seen in the VIX term structure and should favor strategies that short long or leveraged VIX ETFs, such as the iPath S&P 500 VIX ST Futures ETN, according to market participants.