JPMorgan launches inverse VIX short-term futures ETNs

NEW YORK - JPMorgan Chase Financial Company LLC has initiated the trading of its Inverse VIX Short-Term Futures Exchange-Traded Notes (ETNs) on NYSE Arca under the ticker symbol VYLD. The financial instruments are designed to track the inverse daily returns of the S&P 500 VIX Short-Term Futures Index and will be redeemable at the issuer’s discretion post-March 21, 2025.

The newly launched ETNs, which have a maturity date of March 22, 2045, aim to provide investors with exposure to the inverse performance of the volatility index, subject to a daily investor fee of 0.85%. JPMorgan Chase & Co., the parent company, guarantees any payment on the ETNs.

The Index that VYLD tracks moves inversely to the weighted average price of the front and second-month VIX futures contracts. It reflects a synthetic short position in these contracts, which are based on the Cboe Volatility Index, a measure of market expectation of near-term volatility conveyed by S&P 500 stock index option prices. The Index also accounts for interest accrued at the Secured Overnight Financing Rate (SOFR).

S&P Dow Jones Indices LLC is responsible for developing, maintaining, and calculating the Index, which investors can follow in real-time under the Bloomberg ticker SPVXSTIT.

Investors considering the ETNs should have the sophistication and knowledge necessary to understand their risks, including the credit risk associated with JPMorgan Financial as the issuer and JPMorgan Chase as the guarantor. The ETNs do not equate to a direct long position in the Index or a direct short position in the VIX futures contracts or the Cboe Volatility Index.

JPMorgan Chase & Co., a leading financial services firm with $4.0 trillion in assets as of December 31, 2024, underscores the importance of individual investment suitability and advises consultation with personal advisors on accounting, legal, regulatory, or tax matters.

This article is based on a press release statement and provides an overview of the new financial product without any endorsement of claims.

In other recent news, JPMorgan Chase & Co. reported significant developments across various facets of its operations. The bank’s acquisition of the student-finance startup Frank resulted in a disappointing yield of only ten new clients, as revealed during the trial of Frank’s founder, Charlie Javice, who is accused of inflating user numbers. Additionally, JPMorgan announced a quarterly dividend for its common stock shareholders, reflecting its ongoing commitment to shareholder value. The firm also declared dividends on its Series CC preferred stock, maintaining its regular financial operations. In a strategic move to bolster its mergers and acquisitions capabilities, JPMorgan hired Jens Becker from UBS Group AG. Becker will focus on energy, power, renewables, and metals and mining sectors in his new role. Meanwhile, JPMorgan CEO Jamie Dimon shared insights on economic conditions, noting signs of economic weakening and expressing skepticism about the direct impact of tariffs on consumer behavior. Dimon also conveyed cautious optimism about future US-China trade relations. These developments highlight JPMorgan’s strategic initiatives and the perspectives of its leadership amidst current economic challenges.

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