SVXY vs ZVOL

SVXYBProShares Short VIX Short-Term Futures ETF

ZVOLBVolatility Shares Volatility Premium Plus ETF

In short

SVXY Short volatility, half dose. SVXY targets one-half the inverse of a VIX short-term futures index each day, a deliberately de-tuned take on the short-vol trade, and it has run that mandate since 2011.

ZVOL Short volatility, but further out the curve. ZVOL takes daily inverse exposure to mid-term VIX futures instead of the front month, aiming to monetize the roll premium in those contracts, and it pays out monthly.

Stated mandate

SVXY SVXY seeks daily results equal to one-half the inverse of the S&P 500 VIX Short-Term Futures Index. Its objective is measured daily, so returns over longer periods can differ from the stated daily target.

ZVOL The Fund seeks daily results, before fees and expenses, corresponding to the S&P 500 VIX Mid-Term Futures Inverse Daily Index.

Why people hold it

• SVXY The half-strength design is the whole idea: a -0.5x daily target rather than full inverse, so a jump in VIX futures lands with half the force of a one-for-one short.proshares.com
• 0.95% a year sits below the typical leveraged and inverse fund, and among that crowd this is one of the stronger implementations in its peer group.
• Launched in 2011 and actively traded, so it has a long operating history and a working market for getting in and out.

• ZVOL Most short-vol trades crowd the front month. ZVOL works the mid-term end of the VIX curve, the fourth through seventh contracts, which move less violently than the nearest ones.sec.gov
• Income is the point, not a byproduct: continuously rolling short VIX futures is expected to produce a volatility premium or roll yield, which the fund declares as a monthly dividend.sec.govvolatilityshares.com
• A registered 1940 Act fund, with futures exposure held through a wholly owned Cayman subsidiary rather than a bare commodity pool.sec.gov
• Sits in the upper half of the inverse and leveraged funds we grade, with a risk profile calmer than most of that crowd, thanks to the mid-term contracts and single inverse exposure.

Worth knowing

• SVXY The objective resets daily. Hold longer and compounding takes over, so results over weeks or months can look nothing like half the inverse of the index.proshares.com
• It is a commodity pool holding VIX futures, not a basket of stocks. Reporting and tax treatment follow different rules than a standard equity ETF.proshares.com
• Pure price vehicle with no distribution stream, and volatility spikes arrive fast, which is exactly what a short-vol position is on the wrong side of.

• ZVOL The mandate resets daily. Hold past one day and returns compound, so results can drift well away from the inverse of the index, and a volatility spike cuts against the position.volatilityshares.com
• Fees run above the neighborhood: 1.42% versus a 1.21% median for bear and leveraged funds. SVXY does short-vol at 0.95%, though from the short-term end of the curve.
• It is a small, thinly traded fund, so limit orders earn their keep. The issuer also expects part or all of each distribution to be return of capital rather than new profit.volatilityshares.com

Full SVXY profile⁠

Full ZVOL profile⁠