Buying VIX ETFs or tracking volatility directly is not an effective long volatility strategy for portfolios because these products suffer from contango roll costs (often 5-10% per month) and do not hedge directional asset moves.
causalpending
Speaker
Patrick CeresnaEvidence Quote
“there is no real volatility for them to buy so they're buying VIX futures and the futures have a term structure the way aisle and natural gas and all the other futures have and and volatility is it tends to have be the in trading and contango which means that it's always more expensive to roll it forward and therefore often as much as five or ten percent tax a month is being hit on somebody that's holding a long volatility ETF”
Created: 8/10/2026, 11:03:13 PM
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