How Can I Invest in Volatility?
Just like other indexes, you can’t invest directly into the VIX. But there are several products available that allow investors the opportunity to invest in volatility derivatives.They can take the form of an Exchange Traded Note (ETN) or an Exchange Traded Fund (ETF). ETNs and ETFs have special risks that an investor must be familiar with before investing. Before investing in these products, investors should carefully consider the fund’s investment objectives, risks, charges and expenses. A prospectus from the fund will be available from the fund sponsor. The taxation of these instruments can be complex as well and you should consider contacting a tax advisor regarding the tax treatment applicable to these types of securities before investing.