​Retail VIX Positioning Opens Risk Premia Strategies

Retail investors playing volatility-related notes and funds have long been characterized as typically unsophisticated; coming in at the top and selling at the bottom. But recent moves in volatility over the last six months are suggesting much savvier investors are using volatility exchange-traded notes for more than a simple short-term hedge, timing their investments with greater accuracy and using the asset class to speculate as much as hedge portfolios.