The short answer is no—not realistically. But the higher leverage of UVIX makes it theoretically more possible than UVXY. Here’s why, and what would actually need to happen for either to reach zero.
The Mathematical Thresholds
Both UVXY and UVIX track short-term VIX futures contracts, attempting to deliver leveraged exposure to volatility. The key difference is the degree of leverage:
UVXY: 1.5x daily leverage
UVIX: 2x daily leverage
For either ETF to reach zero in a single trading day, the underlying VIX futures index would need to decline by a specific percentage:
UVXY’s threshold:
With 1.5x leverage, UVXY would reach zero if VIX futures dropped approximately 67%in one day
Calculation: 1 / 1.5 = 0.667, or 67%
UVIX’s threshold:
With 2x leverage, UVIX would reach zero if VIX futures dropped 50% in one day
Calculation: 1 / 2 = 0.50, or 50%
This is why UVIX is theoretically more vulnerable: it requires a smaller move in the underlying index to be completely wiped out.
Has This Ever Happened?
To put these numbers in perspective, let’s look at historical VIX behavior.
The VIX futures that these ETFs track have never declined 50% in a single day, but they’ve come closer than many realize. The largest single-day Spot VIX declines in history include:
April 9, 2025 (Post-Crisis Relief): VIX fell 35.8% (down 18.7 points)
May 10, 2010 (After Flash Crash Panic): VIX fell 29.6% (down 12.1 points)
August 6, 2024 (Volatility Reset): VIX fell 28.2% (down 10.9 points)
August 9, 2011 (Eurozone Debt Relief): VIX fell 27.0% (down 12.9 points)
June 15, 2006 (Mid-Year Calm): VIX fell 25.9% (down 5.6 points)
These are significant moves. A 35.8% decline is over 70% of the way to the 50% threshold that would wipe out UVIX, and only about 54% of the way to the 67% threshold for UVXY.
This means UVIX has come considerably closer to theoretical wipeout than UVXY during actual historical events. While we’ve never seen a 50% decline, a 35.8% decline proves that extreme volatility collapses can approach that territory.
For VIX futures to drop 50% in a day, they would need to start around 30-40 and end near 15-20. We’ve seen 35.8%, so a 50% move isn’t some wild fantasy—it’s a roughly 40% bigger move than something that has actually happened. Still unprecedented, but within the realm of extreme market behavior rather than mathematical impossibility.
The Real Risk: Slow Decay, Not Sudden Death
While neither UVXY nor UVIX is likely to go to zero in a day, both are virtually guaranteed to lose most of their value over time if held long-term due to Contango and Beta Slippage
Conclusion
UVXY and UVIX probably can’t realistically go to zero in a single trading day, but the historical record shows they’ve come closer than many investors realize.
If you’re considering trading these products, understand that your primary risk isn’t a one-day obliteration. It’s the near-certainty that every day you hold them, you’re losing money to structural forces that have nothing to do with your market view.