Product Confusion: Why Retail Investors Lose Money in VIX ETPs
Posted on June 12, 2025
Behavioral finance has studied why retail investors lose money. We discussed one such study in a previous post. Retail investor losses can be attributed to, among other factors, overconfidence, overtrading, sensation seeking, issuers’ overpricing, etc. Reference observed that in the VIX ETP space, retail investors experienced an annualized return …