iPath VIX Short-Term Futures ETN (VXX)

The iPath VIX Short-Term Futures ETN VXX really missed out on the bull market of 2009. This ETF tracks a futures-based strategy of investing in futures contracts on the CBOE Volatility Index, better known as the VIX or the Investor’s Fear Index. After soaring above 80 at the height of the financial crisis, VIX has now dropped below 20 and the likelihood of at least a temporary spike seems high.

Whether you think the market will sell off in 2010 or not, the fact remains that investors are still way to complacent and not fearful enough. They are basically blindly investing without considering risk – never a good thing. And take notice of the huge volume yesterday showing people running into the ETF and betting against the market.