Why cannot directly invest in a VIX?

CFA Level III
#1

[original post removed]

#2

What’s the underlying asset?

#3

It’s just an indicator.

#4

Because it isn’t anything tangible.

VIX is calculated as the standard deviation of implied volatility as measured by the put/call ratio on SPY.

So, it has no dollar value.

#5

That’s a weird way of saying it. Implied volatility _ is _ the standard deviation.

Sort of like saying it’s the color of a color.