Barclays has launched an investment aiming to provide efficient and cost-effective exposure to volatility.

The S&P 500 Dynamic Vix Futures Index Total Return Investment aims to provide efficient exposure to the implied volatility of the US stock market through an automated allocation strategy.

The strategy uses the shape of the volatility term structure to determine its exposure, automatically allocating between short- and mid-term S&P 500 VIX futures in a bid to reduce roll cost when volatility is low and enhance beta when volatility is elevated.

“While other equity diversifiers such as gold and gilts have enjoyed strong runs from the post-2008 flight to safety, current volatility levels are relatively low, making this a potentially attractive entry point into the asset class,” said Lisa Chaudhuri of UK investor solutions at Barclays.