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Fidelity restricts clients from buying 'fear gauge' ETF

From Reuters - February 9, 2018

BOSTON/NEW YORK (Reuters) - Fidelity Investments on Friday told clients they could not buy shares in an exchange-traded fund that bets on the direction of Wall Streets fear gauge, after the product was sideswiped by a selloff in stocks and lost 90 percent of its value this week.

The company placed restrictions on investor purchases of ProShares Short VIX Short-Term Futures ETF, the latest investment product profiting from market calm to fall victim to the recent upsurge in volatility.

This security is restricted from online opening trades or restricted to closing trades only, said an alert on Fidelitys popular online brokerage.

Fund manager ProShare Advisors LLC was not immediately available for comment.

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