CBOE VIX Volatility Index rises slightly on Monday but continues to trade near 3 ½-month lows.
The CBOE VIX (NYSEARCA:VXX) edged higher on Monday but continued to trade near its lowest levels since late January, pointing to prevailing calm on Wall Street.
The Chicago Board Options Exchange (CBOE) Volatility Index rose more than 2% on Monday to close at 12.93. The so-called “fear index” declined sharply last week as stocks surged more than 2%.
In equities, the large-cap S&P 500 Index (NYSEARCA:SPY) rose 0.1% on Monday.
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 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 1.5%.
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 4.9%.
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 6.8%.
The Final Word: With volatility holding well below the historic average, investors can expect further upside for stocks in the short term. However, it remains to be seen whether risk appetite can sustain multiple rate hikes by the Federal Reserve in the second half of the year.