As Investors Look To Hedge Risk, ETN Product Raises Questions

As the markets have risen to significant new highs over the past two years, some say on the back of artificial Federal Reserve stimulus, certain investors are looking to hedge their portfolios against a potential stock market bubble bursting as the stimulus is withdrawn.  The need for portfolio protection has driven the popularity of a once troubled investment vehicle: a volatility-based exchange traded note (ETN), a cause of concern in some corners.  In particular, the Credit Suisse AG - VelocityShares Daily 2x VIX Short Term ETN (NASDAQ:TVIX) is witnessing a renaissance despite its troubled past.

Above: two year performance of...