(ZIVB) Volatility Shares Trust -1x - Ratings and Ratios

The Volatility Shares Trust -1x Short VIX Mid-Term Futures Strategy ETF (BATS:ZIVB) is an actively managed exchange-traded fund that employs a contrarian strategy by investing in futures contracts tied to the Chicago Board Options Exchange Volatility Index. This fund is designed to capitalize on the inverse performance of the underlying index, making it a potential hedge for investors seeking to mitigate volatility risks.

Given its non-diversified nature, ZIVB is heavily reliant on the performance of its core investments, which are futures contracts based on the VIX index. This positions the fund for significant gains during periods of low volatility, as the value of the VIX index tends to decrease. However, it also exposes the fund to substantial risks during periods of heightened market volatility.

Analyzing the funds technical data, we observe that its current price is $13.49, slightly above its 20-day Simple Moving Average (SMA) of $13.41. The 50-day SMA stands at $13.88, while the 200-day SMA is $15.94, indicating a longer-term downtrend. The Average True Range (ATR) is 0.47, representing a 3.48% daily volatility. The 52-week high and low are $18.88 and $11.85, respectively, showcasing the funds price range over the past year.

From a fundamental perspective, the funds Assets Under Management (AUM) stand at $16.78 million. While this is a relatively modest figure, it is essential to consider the funds strategy and market conditions when evaluating its potential for growth.

Forecasting the funds performance, we can anticipate that ZIVB will continue to be influenced by market volatility. If the VIX index remains subdued, the fund is likely to benefit from its inverse exposure. However, if market volatility spikes, the funds value may decline. Based on the technical data, a potential support level is around $13.41 (SMA20), while resistance is near $13.88 (SMA50). A break above or below these levels could signal further direction. Considering the current AUM and the funds strategy, a moderate increase in AUM could be expected if the fund continues to attract investors seeking volatility hedges.

Taking a data-driven approach, our analysis suggests that ZIVB may be an attractive option for investors looking to capitalize on low-volatility environments. However, it is crucial to closely monitor market conditions and adjust investment strategies accordingly. A prudent approach would be to set clear entry and exit points based on technical indicators, such as SMA crossovers or ATR-based stop-loss levels, to maximize returns while minimizing potential losses.