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.
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.
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