Short-Volatility Funds Are Being Flooded With Cash
- Assets of inverse volatility ETFs rise to $2.4 billion
- Volatility funds now bigger than those tracking many countries
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Exchange-trade products betting that volatility will sink lower have never been more popular.
Even as the CBOE Volatility Index plunges to its lowest on record and U.S. stocks march to fresh highs, investors have continued to give the short-volatility trade their vote of confidence this year. With $2.4 billion in assets, short volatility exchange-traded funds are backed by the most cash on record, according to data compiled by Bloomberg.