Cash Vix ETFs

[cdcaveman]

Quote from tradingjournals:

Another day, the same thing like friday:

VXX gains little: 45.77 +0.38 (0.84%)
VIX 14.25 +0.55 (4.01%)

Is the cost basis roll in VXX cheap or expensive?

If the front month goes over the back month, we will see how things would change in VXX vs. VIX. At that point, I would go to VXX, because I would get paid for the carry, rather than paying for the carry.

Good luck

 

[tradingjournals]

With above data, now read my original question:

Quote from tradingjournals:

Do you know which ETFs replicate cash vix?

I do not like VXX because of carry due to front months vix higher than cash vix.

Do you now see what I was asking about, and why I was asking about it?

So one could get the volty direction right, but if one chooses VXX in the current conditions, one could get a lot less reward. Since VXX could be viewed as way to hedge, those who bought it for hedging may have paid for something they may not know they paid for.