Market Volatility

The Fix = VIX? | 12 July 2020

Portformer 2.0 – On the Way!

Listening to feedback from our loyal advisor community, we’ll soon roll out a new look, enhanced navigation, and expanded functionality like:

  • Replacement Scores with Quarterly Updates
  • Fund and Portfolio Alerts
  • More Mutual Fund Replications including Multi-Fund Strategies
  • Tax Optimization Tools, and
  • The Fastest Backtester Available for Advisors


Look out for Portformer 2.0 within the next few weeks! Try Portformer today with our free trial (no CC required)!

Weekly Update

Advisors and their investors worry about market volatility and look for downside protection—especially during the kind of big negative moves we’ve seen during the credit crises of 2008, 2018, and 2020.

Higher volatility has been the name of the game, so hedging emerges as an important strategy for minimizing risk without upsetting the diversification of the client’s portfolio. While the VIX is an indicator of heightened near-term volatility, ETFs like VXX, VXZ, UVXY, and TVIX provide the best access.

After our comments last week on the market melt-up, many advisors asked about efficient hedging strategies. When we select VXX and looked for alternatives, VXZ comes up as an interesting, more prudent path. Beating 2,145 strategies, the fund has sustained nicely from return and risk perspectives. VXZ could be a compelling option for advisors seeking to hedge the market and avoid decay from S&P 500 Index options expiration.

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Have a good week!

Best,

John DiBenedetto and the Portformer Team

John DiBenedetto

Sales | Business Development | Customer Success

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