Wall Street Battles for Supremacy in Volatility Mhfarket

By Richard Henderson and Joe Rennison

A fight for assets has erupted among volatility funds that allow investors to bet on gyrations in the stock market, as the current market-leading exchange traded product enters its final days.

Barclays’ $700m exchange-traded note, known by the ticker VXX, was the first of its kind when it launched in January 2009. The fund buys futures contracts on the Vix volatility index, also known as Wall Street’s “fear gauge”, which typically rises as equity prices fall.

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