The world’s biggest volatility ETF grows 40% in just 4 days

The biggest ETF that profits from U.S. stock volatility has added more than $600 million of new money in less than a week.

The ProShares Ultra VIX Short-Term Futures ETF (UVXY) now boasts $2.2 billion in assets, up from $1.6 billion late last week, according to data compiled by Bloomberg. Activity in the fund is surging, with trading volume on Wednesday jumping to more than three times the one-year average.

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By Andrew Shilling

February 11

Exactly what’s behind the sudden frenzy remains unclear.

Some of the recent demand may be driven by wagers on the CBOE Volatility Index to rise. However investors could also be acquiring shares of UVXY in order to lend them out — in effect betting against it and on enduring calm in the equity market.

The latter view finds some support in the number of shares sold short, which has jumped to about 4.6 million — the highest since March — according to data from IHS Markit.

UVXY has attracted net inflows of $2.22 billion in the past year.