Leveraged VIX Fund RUVXY Entices Traders with Daily Gains

The ProShares Ultra VIX Short-Term Futures ETF, listed as RUVXY on Coinbase, is a leveraged exchange-traded fund that aims to provide daily investment results corresponding to 1.5 times the daily performance of its benchmark index.

The benchmark index is tied to futures on the CBOE Volatility Index (VIX), also known as the market's 'fear gauge'. This product primarily serves as a tactical tool for short-term traders to hedge against major U.S. equity market downturns or bet on surges in market panic.

However, holding RUVXY over the long term can result in severe rollover decay.