UVXY seeks 1.5 times the daily return of an index of short-term VIX futures, so it gains when market volatility rises sharply and loses when volatility falls. It does not track the VIX index itself. VIX futures usually trade above spot VIX, and rolling them forward creates a steady drag, which together with leverage has caused the fund to lose most of its value over multi-year periods. UVXY is used by traders for short-term positions and is not suited to long-term holding.
