​VIX ETPs See Record Inflows As Vol-of-Vol Increases

Exchange-traded products long the CBOE Volatility Index saw an unusually large influx of investment in the two months leading up to the U.K.’s June referendum and those same products saw increased flow directly after. The follow on effect is typically net short positioning of hedge funds in VIX futures, as those fund managers take the other side of the ETF long position. Daniel O’Leary reports on the ever increasing long positioning of ETPs and how greater volatility-of-volatility can affect the market.