On the face of it, the investment proposition of energy ETFs is as simple as it gets – a 50/50 shot on whether energy prices are going to rise or not. However, on closer inspection you may find the dice have been weighted.
With the VIX (Chicago Board of Exchange Volatility Index) falling to the low 20s, it looks as though risk in the markets is subsiding again for the moment. However, whether the VIX will flatten out for a longer period is an entirely different matter.
A glance at the performance of leading inflation-linked bond ETFs since the end of last summer demonstrates how investors simply can’t make their minds up about one key question: Are we facing inflation or deflation?
