(SVIX) 1x Short VIX Futures - Ratings and Ratios

The -1x Short VIX Futures ETF (BATS:SVIX) is designed to provide the opposite daily return of a portfolio that holds a mix of VIX futures contracts with the first and second month expirations. This portfolio is rebalanced daily to maintain a consistent maturity profile, effectively making it a dynamic short position in VIX futures. The underlying index is valued daily at 4:00 p.m. ET, based on the average price of the relevant VIX futures between 3:45 p.m. and 4:00 p.m. ET.

SVIX is an exchange-traded fund (ETF) listed in the USA, categorized under Trading--Inverse Equity. It is designed for investors looking to capitalize on the inverse performance of VIX futures, which can be a complex and volatile market. By shorting VIX futures, SVIX essentially bets against the volatility index, which tends to spike during market downturns and remain subdued during periods of market calm.

Analyzing the technical data, the current price of SVIX is $12.70, indicating a recent uptrend as its above its 20-day Simple Moving Average (SMA) of $12.01 but still below its longer-term SMAs, suggesting a potential for further short-term gains but a longer-term downtrend. The Average True Range (ATR) is 1.44, or 11.34% of its current price, indicating significant daily price movements. Given its 52-week range of $10.50 to $50.73, SVIX has shown the capability for substantial price swings.

With Assets Under Management (AUM) of $665.11 million, SVIX has a considerable presence in the market, suggesting it is a viable option for investors seeking inverse exposure to VIX futures. The size of the fund indicates it is liquid enough for most investors to enter or exit positions without significantly impacting the market price.

Forecasting SVIXs performance involves analyzing both the technical and fundamental data. Given the current price is above its 20-day SMA but below its 50-day and 200-day SMAs, a cautious outlook is warranted. If the VIX remains subdued or decreases, indicating low volatility, SVIX could potentially see gains due to its inverse relationship with VIX futures. However, if market volatility spikes, SVIX could decline sharply. Based on the ATR, investors should be prepared for significant daily swings. A potential trading strategy could involve closely monitoring VIX futures and adjusting positions in SVIX accordingly, or using it as a hedge against potential market downturns. A forecast based on the current technical indicators and assuming a continuation of the current low volatility environment might see SVIX testing its SMA50 at $17.02 in the medium term, though this is contingent on VIX futures remaining stable or declining.