PALM BEACH GARDENS, FL – VS Trust, the sponsor and commodity pool operator for 2x Long VIX Futures ETF (CboeBZX:UVIX) and -1x Short VIX Futures ETF (CboeBZX:SVIX), has announced the termination of its commodity sub-advisory agreement with Penserra Capital Management LLC, effective today, Monday. The move will see the Sponsor directly handle day-to-day portfolio management services for both funds from this point forward.
The change was revealed in a recent 8-K filing with the Securities and Exchange Commission, which detailed the termination of the relationship with Penserra Capital Management LLC. The filing did not provide reasons for the termination of the sub-advisory services. The sponsor, Volatility Shares LLC, has taken over the commodity sub-advisory responsibilities for the ETFs as of the effective date.
This decision does not appear to affect the trading symbols or the exchanges on which the ETFs are listed. The 2x Long VIX Futures ETF and -1x Short VIX Futures ETF remain registered on the Cboe BZX Exchange, Inc. under the symbols UVIX and SVIX, respectively.
The ETFs in question are designed to offer exposure to futures contracts on the CBOE Volatility Index (VIX). The 2x Long VIX Futures ETF aims to provide investment results that correspond to two times the daily performance of the S&P 500 VIX Short-Term Futures Index, while the -1x Short VIX Futures ETF seeks to offer returns that are inversely proportional to the daily performance of the same index.
Investors in these funds should note the change in management structure and may want to monitor the performance of the funds under the new arrangement. The information for this article is based on a press release statement.
InvestingPro Insights
In light of the recent management changes at VS Trust, investors looking at the 2x Long VIX Futures ETF (UVIX) may benefit from a deeper understanding of the fund's current market performance. According to InvestingPro data, UVIX has experienced significant volatility, with a one-week price total return of -13.78% and a one-month price total return of 8.69%.
Over the longer term, the three-month price total return shows a decline of -22.45%, while the six-month return plummeted by -55.9%. This aligns with one of the InvestingPro Tips, which highlights that UVIX generally trades with high price volatility and has suffered from weak gross profit margins.
The market capitalization of UVIX currently stands at $121 million, and the ETF's price is at a mere 10.1% of its 52-week high, with a previous close at $4.63. These figures underscore the fund's recent performance struggles, as indicated by an annual price total return of -83.52%, reflecting a significant decrease over the last year.
For investors considering UVIX, it is crucial to note that the ETF does not pay a dividend, and its valuation implies a poor free cash flow yield, as per another InvestingPro Tip. Those interested in further tips and a deeper analysis can find additional insights—there are 9 more InvestingPro Tips available for UVIX at https://www.investing.com/pro/UVIX, which could provide valuable context for the ETF's performance and expectations under the new management structure.
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