2x Long VIX Futures ETF

UVIX

Market cap $558M

The 2x Long VIX Futures ETF offers leveraged exposure to VIX, making it a powerful but risky short-term trading tool for volatility spikes. UVIX is best used when the VIX is near 20, as current market conditions—trade tensions, government shutdown risk, and high valuations—favor increased volatility. UVIX's high liquidity is offset by steep management fees, time decay, and significant risk, requiring disciplined use of time and price stops.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

UVIX is not suitable as a long-term holding due to accelerated decay, high expense ratio, and failure to consistently deliver 2x VIX returns. This ETF only partially captures VIX spikes and requires vigilant monitoring, making it best used as a tactical, short-term tool during volatility surges. Negative roll yield in contango and volatility drag further erode returns, while the market's resilience to volatility spikes limits UVIX's effectiveness.

UVIX is a 2x leveraged ETF tracking daily VIX futures, suitable only for short-term trading, not long-term investment. Due to daily resets and market growth trends, holding UVIX long-term leads to significant value decay and heightened risk. Traders can tactically use UVIX during major economic events, but must exercise strict discipline to avoid unsalvageable losses.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Wall Street was in the red last week. However, leveraged ETFs like ORCX, NRGU, TSLG, UVIX and PLTG surged massively.

2x Long VIX Futures ETF is a risky, short-term trading vehicle that decays over time due to contango and leverage-induced negative compounding. Geopolitical events like the Israel-Iran conflict can cause short-term spikes in UVIX, but these gains typically fade quickly. Given the short-lived nature of volatility spikes and its design, I rate UVIX a Sell and advise against chasing recent gains.

Top Performing Leveraged/Inverse ETFs Last Week These were last week's top performing leveraged and inverse ETFs. Note that because of leverage, these kinds of funds can move quickly.

Leveraged quantum computing ETFs, gold mining ETFs and volatility ETFs logged solid gains last week, despite broader market declines.

Volatility ETFs are on the rise as Trump's renewed tariff threats sent the VIX fear gauge soaring 29.3% last week.