U.S. Volatility-Linked Fund Selloff Eases After $150 Billion Dump

Volatility-Linked Fund Selloff Eases After $150 Billion Dump

Selling pressure by volatility-linked funds that exacerbated losses in U.S. stocks over recent days may be on track to ease, analysts said. Volatility-linked strategies, including volatility control funds and equities trend-following commodity trading advisers (CTAs), are systematic investment strategies that typically buy equities when markets are calm and sell when they grow turbulent. They became heavy sellers of stocks over the last few weeks, exacerbating a market rout brought on by economic worries and the unwind of a massive global carry trade.