Wall Street's Top Winners 2016Last week I wrote that there was the potential for VIX to increase. My view was based on the potential for a lot of information to come out of Washington D.C. and for the possibility that stock correlations would increase. Stock correlations within the S&P 500, on the other hand continued to drop as sector responded to policy and earnings. That less than 1 point drop is relatively small in volatility terms but highlights why using VIX ETFs and ETNs as hedges is so difficult. Converting a small relative VIX move into a large percentage change is one thing I have not liked about the VIX ETFs (the VIX futures have a constant dollar amount for a change in vol).

Source: Forbes January 28, 2017 13:26 UTC