XIV ETN @IB vs. SVXY ARCA CFD @IB

[joekey123]

Dear all,

as you know VelocityShares Daily Inverse VIX Short Term ETN was disabled for trading. I have a trading system for this ETN and I would like to continue using it. I hope, I found product which I can use instead of XIV ETN (@IB). But Iam not sure. That's why Iam writing this post. There is a ProShares Short VIX Short-Term Futures (SVXY ARCA CFD @IB). Here is the comparison of both of them:
http://etfdb.com/tool/etf-comparison/SVXY-XIV/

My questions are: Can somebody confirm, that the time series of both products are same (or almost the same) as the Underlying is identical? One product is ETN an the other is Commodity Pool. Where is the difference? Are there some other important differencies I should consider?

Thx a lot for each info!

BR JoeKey

 

[lindq]

Dear all,

as you know VelocityShares Daily Inverse VIX Short Term ETN was disabled for trading. I have a trading system for this ETN and I would like to continue using it. I hope, I found product which I can use instead of XIV ETN (@IB). But Iam not sure. That's why Iam writing this post. There is a ProShares Short VIX Short-Term Futures (SVXY ARCA CFD @IB). Here is the comparison of both of them:
http://etfdb.com/tool/etf-comparison/SVXY-XIV/

My questions are: Can somebody confirm, that the time series of both products are same (or almost the same) as the Underlying is identical? One product is ETN an the other is Commodity Pool. Where is the difference? Are there some other important differencies I should consider?

Thx a lot for each info!

BR JoeKey

SVXY was, but no longer is, comparable to XIV. It will give you roughly half the performance.

Also, because of the failure of XIV, SVXY is restricted by many brokers in retirement accounts, and not available at all at some brokers.

If you do trade it, I would advise you to never to hold it overnight.

Alternatives can be other VIX derivatives, options, futures, etc. Good luck.

 

[joekey123]

Hello,

thx a lot for your answer. Why you dont suggest to hold the positions over night?

Thx
JoeKey

 

[lindq]

Hello,

thx a lot for your answer. Why you dont suggest to hold the positions over night?

Thx
JoeKey

Volatility can be extreme overnight, and the VIX derivative ETFs and ETNs can make massive moves. If you are not hedged, it is a dangerous game not worth playing.

 

[joekey123]

Hello ok, vola is clear. I supposed there is another point which Iam not aware.

Thx BR JoeKey