Fidelity halts investor purchases of three volatility-focused ETFs

Customers can sell out of existing positions, but can't buy into the funds, company says.
FEB 09, 2018

Fidelity Investments is halting investor purchases of three volatility-focused exchange-traded funds to protect customers from outsized risk. The products are: ProShares Short VIX Short-Term Futures, VelocityShares Daily Inverse VIX Short-Term ETN, and VelocityShares Daily Inverse VIX Medium Term ETN. (More: Exchange-traded notes add another layer of risk) The ban started Tuesday, said Robert Beauregard, a company spokesman. "We are allowing customers to sell out of existing positions, but no one can buy into them," he said. The Financial Times earlier reported on the ban. (More: Wall Street's volatility time bomb)

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