My ETN of the Day: VQT

VQT is an ETN (exchange-traded note). Its purpose or goal is to reduce investment risk and price volatility. Says Investopedia:

VQT “seeks to replicate, net of expenses, the S&P 500 Dynamic VEQTOR Total Return Index. The index seeks to provide broad equity market exposure with an implied volatility hedge by dynamically allocating its notional investments among three components: equity, volatility and cash.

“The equity component of the Index is represented by the S&P 500 Total Return Index and the volatility component of the Index is represented by the S&P 500 VIX Short-Term Futures Index.”

My 5-year Yahoo chart for VQT shows, despite its goal, volatility with more down trend than the seriously risk-averse might have handled in 2012:

http://finance.yahoo.com/q/ta?s=VQT&t=2y&l=on&z=l&q=l&p=m20%2Cm50%2Cm100&a=m26-12-9%2Cr14&c=

My 3-month chart shows less-dramatic volatility but suggests would-be investors ought to watch VQT day by day for a better buying opportunity than it appears to provide just now. See:

http://finance.yahoo.com/q/ta?s=VQT&t=3m&l=on&z=l&q=l&p=m20%2Cm50%2Cm100%2Cp&a=m26-12-9%2Cr14&c=

Never forget: All investments and savings are gambles on the unknowable future and thus subject to loss as well as gain.

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