volatility product

volatility product

[‚väl·ə′til·əd·ē ‚präd·əkt]
(chemistry)
The product of the concentrations of two or more molecules or ions that react to form a volatile substance.
References in periodicals archive ?
Cboe Launches New Volatility Product Microsite for ETP Investors
5 June 2013 -- INTECH Investment Management LLC said it has further broadened its absolute volatility product suite to include strategies benchmarked to the MSCI All Country World Index (ACWI).
It offers trading across a diverse range of products in multiple asset classes and geographies, including options, futures, US and European equities, exchange-traded products, global foreign exchange and multi-asset volatility products based on the Cboe Volatility Index (VIX Index).
While many investors smarted, others kept coming and between March and September, more than $1.2 billion rolled into U.S.-based exchange-traded volatility products, according to Reuters calculations based on data from FactSet Research Systems Inc, which tracks the investments.
Which brings us to the most recent shiny Wall Street toy to blow up: inverse volatility products. Consider the Credit Suisse Velocity Shares Inverse VIX ETN.
Cboe offers trading across a range of products in multiple asset classes and geographies, including options, futures, US and European equities, exchange-traded products, global foreign exchange and multi-asset volatility products based on the Cboe Volatility Index (VIX Index), a barometer for equity market volatility.
Assets under management for the top two short volatility products is at $2.8bn and their exposure to volatility is at an all-time high, according to Barclays Capital.
It also creates strategy performance indices to help investors track the performance of investment strategies that use options or volatility products to help manage risk and enhance yield.
"However, there have been rumbles that perceived performance of managed volatility products has been weak and potentially contributory to low VA sales in the first half of 2016," the report adds.
Unless investors are specifically hedging against underlying risk, McFarland believes that inflation and volatility products offer minimal value for 2013 portfolios.