Swedroe: Volatility & Corrosive Contango
Feb 28, 2014
Exchange-traded products (ETPs) linked to the CBOE Market Volatility Index (VIX) were launched in January 2009. There are now more than 30 ETPs with a market value of about $4 billion, generating daily trading volume in excess of $800 million. You might wonder why there's all this interest. Robert Whaley, Valere Blair Potter Professor of Management and Director of Vanderbilt's Financial Markets Research Center, sought the answer.