What Is VXX? iPath Series B S&P 500 VIX Short-Term Futures ETN

VXX is the iPath Series B S&P 500 VIX Short-Term Futures ETN, an exchange-traded note that provides exposure to short-term VIX futures. The VIX measures expected near-term volatility of the S&P 500, and it typically rises when stocks fall, so VXX is used as a short-term hedge or a way to trade spikes in market fear. It is not designed to be held for the long run.

VXX, listed on the CBOE BZX exchange. The official name is iPath Series B S&P 500 VIX Short-Term Futures ETN, issued by Barclays under the iPath brand. It tracks the S&P 500 VIX Short-Term Futures Index.

VXX holds short-term VIX futures, which it must continually roll forward. VIX futures markets are usually in contango, meaning later-dated contracts cost more than expiring ones, so each roll is done at a loss. This creates a strong, persistent downward drift, which is why VXX has historically trended sharply lower over long periods despite brief jumps during market selloffs.

No. VXX is structurally designed to decay because of the contango roll in VIX futures, and over long periods it has historically lost the large majority of its value. It is intended for short-term hedging or tactical volatility trading measured in days or weeks, not as a long-term investment. Holding it for months typically compounds the decay.

0.89% per year (89 basis points). On a $10,000 position that is about $89 per year. As with other volatility products, the expense ratio is a secondary concern next to the structural roll decay, which typically dwarfs the fee as a drag on long-term returns.

VXX is an ETN (exchange-traded note), not an ETF. That means it is an unsecured debt obligation of the issuer (Barclays), so in addition to the market and roll risks, holders bear the issuer's credit risk. It does not hold a portfolio of assets on your behalf the way an ETF does; its value is a contractual promise tied to the index.

No. Its reported yield is 0.00%. VXX is a volatility-linked note that tracks a futures index and holds no dividend-paying or interest-bearing assets to distribute, so there is no income to shareholders.

Because VIX futures usually spike when the S&P 500 drops sharply, some traders buy VXX for short stretches to offset losses in a stock portfolio during a downturn. The catch is timing: the same contango decay that erodes VXX over time makes it costly to hold as insurance, so it works best as a short-term hedge put on and taken off deliberately, not left in place.

VXX trades like any stock during US market hours. Many brokers require you to acknowledge the risks of volatility products before trading them. Because of its decay, it is used tactically and watched closely rather than held. Walnut is not an investment adviser and does not recommend volatility products.

Yes, highly. It combines volatility-futures exposure, structural roll decay, sharp and unpredictable price swings, and ETN issuer credit risk. Losses from holding it too long can be severe, and even correct short-term views can be undone by the roll cost. It is intended only for experienced traders who fully understand these mechanics.

Approximately $441.16M as of July 2026. Because of its decay and tactical use, VXX periodically undergoes reverse splits to keep its share price in a tradable range, so its share count and price history reflect those adjustments.

The VIX is an index, a calculated measure of expected 30-day S&P 500 volatility that you cannot buy directly. VXX is a tradable note that holds VIX futures, which only approximate the VIX and carry roll costs. As a result VXX does not move one-for-one with the VIX and tends to underperform it over time because of the futures roll.

The Series B note launched in January 2018, succeeding an earlier VXX note from 2009 that reached its scheduled maturity. iPath issued it to continue offering exchange-traded exposure to short-term VIX futures under a new note with a later maturity date.

You can, but even over a week the contango roll and the note's decay can work against you if volatility does not rise. VXX is built for short-term, often intraday to multi-day, tactical use, and the longer you hold, the more the structural decay tends to erode value. It requires active monitoring, not a buy-and-hold approach.

Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. VXX's figures are above; the full method is in Walnut's guide on how to compare ETFs.