Credit Suisse AG – VelocityShares Daily 2x VIX Short Term ETN (NASDAQ:TVIX) Fails To Enthuse Investors

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Dallas, Texas 02/12/2014 (FINANCIALSTRENDS) – The $141 million market capped exchange traded fund,Credit Suisse AG – VelocityShares Daily 2x VIX Short Term ETN (NASDAQ:TVIX) had been originally issued with the intent of providing investors with an option to invest in future contracts which are actively traded on the S&P 500 VIX Short-Term Futures Index.  These options are indicative of the volatility which is inherent in the S&P 500 index.

Credit Suisse AG – VelocityShares Daily 2x VIX Short Term ETN (NASDAQ:TVIX), is an ETF which was issued by Velocity Shares. It has total issued shares of 17.9 million and has had a huge trading range of $6.45 at the lower end and $61.7 at the higher end in the past 52 weeks. On 11th February, it was trading at $7.20.

In the short term, over the immediate week, the fund has inhabited the negative returns region with a 29.2 percent dip in returns over the past 1 week of trading. The losses level out to 1.73 percent when a two week window is considered and extends to 52 percent when a two month time frame is considered. Credit Suisse AG – VelocityShares Daily 2x VIX Short Term ETN (NASDAQ:TVIX) has not paid out any dividend in the past one year and its returns on a one year time frame is down to 84 percent.

As befits a fund which is designed to leverage the volatility in the market, it has exhibited a 5 day volatility of 128 percent, which comes down to 107 percent on a 50 day volatility lookout and has shown an 11.9 percent deviation, with a expense ratio of 1.65. Compared against other volatility based ETF like VXX and TRSK,  Credit Suisse AG – VelocityShares Daily 2x VIX Short Term ETN (NASDAQ:TVIX) has been a laggard. It comes across as lacking liquidity and relatively expensive compared to the competition cited.

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