CBOE Fear Index edges lower as stocks accelerate.
The CBOE VIX (NYSEARCA:VXX) declined on Thursday, signaling prevailing calm on Wall Street.
The Chicago Board Options Exchange (CBOE) Volatility Index declined 3.9% to 9.90, where it closed at daily lows. The fear index is on track for weekly declines, reflecting renewed optimism in the financial markets.
The large-cap S&P 500 Index (NYSEARCA:SPY) rose 0.2% on Thursday.
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 1.3%.
VelocityShares Daily Inverse VIX Short Term Futures ETN: (NYSEARCA:XIV) Designed to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. XIV advanced 1.1%.
ProShares Ultra Short 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 2.1%.
VelocityShares Daily Short Term VIX 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 2.3%.
The Final Word: Low volatility is supporting renewed gains in US stocks. However, major political risks could sour investor sentiment as the Trump administration struggles to implement its pro-growth agenda in its first year in office.