Potential to Double Your Investment Annually – Pay Only When We Deliver!
Boutique Hedge Fund Access: Exclusive opportunity for accredited investors seeking higher returns with strategic arbitrage-focused ETFs and ETNs.
High-Growth Potential: Utilizing Contango and targeted ETFs and ETNs, our fund is designed to maximize gains through strategic market positioning.
Focused on ETFs and ETNs chosen specifically for their arbitrage potential, aiming to deliver steady, reliable returns in any market condition.
Short-Term, High-Value Opportunity: This limited raise will close quickly, offering a rare chance to join a fund poised to redefine market returns. Managed by a team of industry experts with a deep understanding of arbitrage and ETF/ETN markets, delivering precision-focused portfolio growth.
Performance-Driven Fees
No maintenance fees; we only succeed when you do, with fees based solely on profitable outcomes.
Exclusive Access
Limited to accredited investors, offering a rare chance to join an elite investment group focused on high-value returns.
Minimal-Risk, High-Yield Opportunities
Knowing that these ETF’s and ETN’s are guaranteed to move in a certain direction over time, risk to personal capital is greatly reduced.
Put simply, the goal is to short the common shares of UVXY, VXX, and VIXY (Go long SVXY) when the VIX pops. The VIX is a called the volatility gauge for markets, but you can only short it through options. UVXY, VXX, and VIXY are all ETF’s that try to track the VIX, but suffer from contango/roll yield due to their structures. They lose money trying to track the VIX.
They always head to zero because of how they’re structured. In order to keep these ETF’s on the indices, the owners continually reverse split them, to keep them from actually going to zero. Understanding the goal of our Fund, below is the historical performance, by year, of the VIX, UVXY, VIXY, VXX, and SVXY. The goal is to only short these ETF’s when the VIX spikes, and then ride it back down to the VIX's reversion to the mean. If you JUST shorted them outright yearly, below would be their performances for the past 5 years (Red in UVXY, VXX, and VIXY is GOOD!)
How often is are these ETF's in contango/roll yield?
About 80% of the time.
What happens to UVXY when it is in contango/roll yield?
a. When UVXY is in contango, its value decreases over time due to the structure of VIX futures. Here's what happens:
b. Daily Roll Process: UVXY holds a mix of VIX futures contracts with different expiration dates. Each day, it sells the expiring near-term contracts and buys longer term contracts. When futures are in contango, the longer-term contracts are more expensive than the near-term contracts. (80% of the time)
c. Buying High, Selling Low: This daily roll process means UVXY is essentially buying high (more expensive longer-term contracts) and selling low (cheaper expiring contracts), which leads to an inevitable erosion of its value.
d. Cumulative Effect: The impact of contango is cumulative, meaning the losses add up over time, especially during periods of low market volatility when the VIX remains relatively stable.
What is the average yearly return using this strategy with UVXY since 2011?
68.91%
If you just shorted UVXY with $1,000 in 2011 and left it until now, what would your return be?
$31,000
Why can’t you do it as a retail trader?
a. It is challenging for retail traders to short UVXY. Here are a few reasons why:
b. High Demand for Shorting: UVXY is a popular target for short sellers due to its historical performance and volatility. This high demand can make it difficult to borrow shares for shorting.
c. Limited Availability: The number of shares available for shorting can be limited, especially during periods of high market volatility when many traders are looking to short UVXY.
d. Margin Requirements: Shorting UVXY typically requires a margin account, and the margin requirements can be quite high, making it less accessible for retail traders.
Yes, because of the nature of roll yield. In market uncertainty, future options are even more expensive. On those occasions, contango/roll yield has an even larger effect on these ETF’s and ETN’s.
The owners of these ETF’s and ETN’s make money managing them. As long as traders keep trading them, they’ll keep making them.
The owners of these ETF’s and ETN’s keep reverse-splitting them when they get below $10 per share.
This is a two part answer:
a.) It’s a little complicated to understand for most retail investors.
b.) Second, most retail investors don’t have access to shares. This is why we are partnering up with Velocity Clearing and Goldman Sachs to access said shares.
This is a legally tricky question. We can’t guarantee results and cannot use past results as promise for future results.
We can point out these ETF’s and ETN’s track records.
Unlike most investments, we know if our entry timing isn’t perfect that we can wait for the trade to come back to us, so we don’t have to take unnecessary losses.
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