My understanding of VIXY is that it is not really meant to be used as a long term investment as it has a lot of exposure to short term VIX futures, and therefore, the price is always trending down.
Understanding this (if I am correct), with an increased risk of market volatility due to the rate cut we got today, could VIXY theoretically reach $50+ in the event that some “black swan” event occurs? Or even higher? Additionally, is there actually a ceiling to the VIXY or any other volatility ETF? Or is it all measured based on the degree of volatility a certain event brings on?
Posted by owter12