TVIX and UGLD on the chopping block

Credit Suisse is shutting down some of its most-popular products. Exchange traded notes tied to gold, silver, natural gas and the VIX will be delisted July 11 and no further notes will be issued starting today.

This was the sole reason given:

As part of its continuing effort to monitor and manage its suite of exchange traded notes, Credit Suisse AG has decided to delist the foregoing ETNs with a view to better align its product suite with its broader strategic growth plans.

On the chopping block:

  • UGLD
  • USLV
  • DGLD
  • DSLV
  • UGAZ
  • DGAZ
  • ZIV
  • VIIX
  • TVIX

TVIX (triple VIX) and UGAZ (triple natural gas) are two of the top-20 most popular ETFs on Robinhood. Combined there are more than $2 billion invested in those two. You wonder if the money invested in some of these products makes its way into individual stocks and if taking some liquidity away from VIX products has any effect.

This should have been done immediately after the XIV blowup. You have to wonder if there were losses that triggered it. Here is the full release.