Both UVXY
(https://www.etf.com/UVXY) and SVXY
(https://www.etf.com/SVXY) track the first- and second-month VIX futures positions. SVXY
, however, is an inverse tracker while UVXY
is not. What I don't understand is if they both track the same thing, why are their trends so out of line (accounting for the inversion, obviously).
More specifically, UVXY
reacted sharply in March 2020 because of the pandemic (as expected) and then relatively quickly settled back down to 2019 levels. SVXY
also reacted sharply in March 2020 because of the pandemic (as expected) but has not returned anywhere near its 2019 levels (like UVXY
). Why is this?