“Buyer Beware”: Trading VIX ETPs? You Probably Have No Idea What You’re Doing

What started as a (mostly) innocent attempt on our part to highlight the multiplying canaries in the ETF coal mine, has recently morphed into a veritable crusade. When it comes to low-cost, passive investment vehicles, that old saying about "too much of a good thing" certainly applies. The rampant proliferation of ETFs has created all manner of market distortions and it's by no means clear that the underlying mechanics (the creation/destruction process) will function smoothly in a pinch. In f