TVIX Stock – Triple-Leveraged Oil Fund Among Niche ETFs That Are Plunging
Distress reigns in corners of the market for exchange-traded products as the spreading coronavirus and all-out oil price war upend assets around the world.
U.S. stocks plunged, crude slid the most since 1991 and Treasury yields plumbed record lows. And now, the pithy slogan “there’s an ETF for that” means there’s a product getting hammered in areas of the markets most under duress.
Here’s where the pain is most acute:
- VelocityShares 3x Long Crude Oil ETN, or UWT, plunged 71%, extending this year’s losses to 92%. Volume in pre-session trading soared to a record high. Based on Friday’s closing price, the net indicative value of the notes would have to fall 75% to below $0.975 to constitute a so-called “trigger event,” putting its future in jeopardy.
- ProShares UltraPro 3X Crude Oil ETF, or OILU, also saw trading surge to an all-time high before the market opened. The $131 million fund tumbled 70% to a record low, extending its 2020 plunge to 91%.
- The $107 million Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares ETF, or GUSH, sank 81%, the most since its inception in 2015.
- The $8.8 billion Energy Select Sector SPDR Fund, the largest ETF tracking the industry, plunged almost 20% Monday. XLE posted its biggest decline since it started trading in 1998.
VelocityShares ETN Escapes ‘Trigger Event’ Even as Oil Collapses
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— With assistance by Joe Carroll