Item — HN Reader

Both are trading vehicles and are treated the same by traders [1] similar to the VIX. Hedge funds, asset management companies and institutions spend their time and their clients money trading, not investing [2]. For groups like these, trading is where the money is.

[1] https://news.ycombinator.com/item?id=13844765

[2] https://www.investopedia.com/ask/answers/12/difference-inves...

1 comments

The VIX is a synthetic index whose value is derived from the implied volatility of the S&P 500 index options (computed from the premium of around-the-money options on the SPX cash index a certain amount of time ahead), without fundamentals, tradeable only via futures contracts and ETFs that own those futures.

It's a second derivative tradeable only via third derivative.

This is very very zero-sum.

The overwhelming majority of these actively managed funds fail to beat the returns of the S&P 500. [1]

In fact over 15 years 92% of actively managed large-cap funds trail the returns of the S&P 500.

Stop trading.

[1] https://www.cnbc.com/2019/03/15/active-fund-managers-trail-t...