Cboe Global Markets, Inc. (Nasdaq: CBOE) announced that it has launched a new microsite designed to educate and inform investors about exchange-traded volatility products (ETPs).
Cboe is the home of the Cboe Volatility Index® (VIX® Index), which is considered by many to be the world’s premier barometer of equity market volatility. The VIX Index is based on real-time prices of options on the S&P 500® Index (SPX) and is designed to reflect investors’ consensus view of future (30-day) expected stock market volatility.
A suite of Cboe VIX Index products covers expected volatility across asset classes: equities, fixed income, foreign exchange and commodities. VIX options are traded at Cboe Options Exchange, while VIX futures are traded at Cboe Futures Exchange (CFE). Cboe also has created a number of volatility benchmark indexes based on sector-specific ETFs.
In conjunction with the Cboe’s growing ETF Marketplace, the newly launched microsite helps investors weigh the risks and rewards of taking positions in volatility-linked ETPs, which are typically linked to the value of an index, not to the VIX itself.
Generally, these indexes are based on a rolling long position in a basket of VIX futures, and target a specific maturity.
Laura Morrison, Senior Vice President, Global Head of Exchange-Traded Products at Cboe, said:
We are excited to provide investors with new educational opportunities through these website pages. As exchange-traded volatility products expand to cover a range of strategies and maturities, we want to be sure the public understands which products may be suitable for their investment needs.
In 2017, Cboe welcomed 129 ETFs to its U.S. market and won 32 percent of all new U.S. ETF listings and 62% of transfers.
There are now 250 ETFs listed on the Cboe ETF Marketplace, from 47 different issuers