Billions Flow into Volatility ETPs Despite High Costs for Long-Term Investors
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 28 2025
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Source: SeekingAlpha
Investor Interest in VIX ETPs: Investors are significantly increasing their investments in exchange-traded products (ETPs) linked to the Cboe Volatility Index (VIX), with Barclays’ iPath S&P 500 VIX Short-Term Futures ETN (VXX) seeing a 300% rise in assets this year, surpassing $1 billion.
Risks and Returns: While VIX-related products can yield high returns during market volatility, they carry risks such as high fees and potential losses, as evidenced by the 78% decline in the UVIX over the past year, highlighting the importance of timing in their use for hedging and speculation.
Analyst Views on VXX
Wall Street analysts forecast VXX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VXX is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 26.760
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Current: 26.760
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
