CBOE VIX Volatility Index falls as stocks gain.
The CBOE VIX (NYSEARCA:VXX) weakened on Tuesday, as calm returned to the equity markets after a volatile start to the week.
The Chicago Board Options Exchange (CBOE) Volatility Index fell 4.3% to close at 18.20. The so-called “fear index” hovered between 18.09 and 19.31 during the session.
In equities, the large-cap S&P 500 Index (NYSEARCA:SPY) rose 0.2% on Tuesday.
Major VIX ETFs:
iPath S&P 500 VIX Short-Term Futures ETN: (NYSEARCA:VXX) Designed to offer exposure to the S&P 500 VIX Short-Term Futures Index Total Return. The Index uses CBOE Volatility Index futures by way of a long position in the first and second-month VIX Futures contracts. VXX declined 2.3%.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short-Term Futures Index. SVXY advanced 1.4%.
ProShares UltraShort Term VIX Futures: (NYSEARCA:UVXY) UVXY is designed to deliver 2X (leveraged) returns of the day’s moves in the S&P 500 VIX Short-Term Futures Index. It tacks the two front months of the futures contract. UVXY declined 3.2%.
VelocityShares Daily 2x VIX Short-Term Futures ETN (NYSEARCA:TVIX) TVIX is a leveraged VIX ETN designed to deliver 2X the returns of the daily S&P 500 Short-Term Futures Index. TVIX declined 4.1%.
The Final Word: The VIX is back to trading near its historic average, possibly signaling continued instability for stocks.