Source: Shutterstock The iPath VIX Short-Term Futures exchange-traded-note (ETN) product follows the volatility index (VIX). In theory, this allows folks to hedge against market risk by profiting when market volatility rises. In practice, however, it hasn’t worked out well. The volatility ETFs and ETNs have done so poorly that many have been delisted after losing 99%+ of their capital. VXX itself was closed and then reopened a few years ago after many years of dreadful performance. VXX stock did spike with the coronavirus pandemic, as you’d expect. However, it gave back all those gains and much, much more. In fact, VXX is down 75% since March 31, 2020. The way the volatility products are constructed, they suffer from volatility drag, hitting performance even more than you might expect. A bulky 0.9% annual expense ratio adds to VXX’s long-term woes. Market timing is a difficult game, and especially so with a flawed product like VXX. You can insure your portfolio against downside with better options than this.