CBOE VIX Volatility Index gives back gains.
The CBOE VIX (NYSEARC:VXX) declined on Wednesday, giving back some of the prior session’s gains as stock markets returned to growth.
The Chicago Board Options Exchange (CBOE) Volatility Index declined more than 8% to close at 13.43, on a scale of 1-100 where 20 represents the historic mean. The so-called “fear index” rose double digits on Tuesday as stocks came under intense selling pressure.
The large-cap S&P 500 Index (NYSEARCA:SPY) rebounded 0.4% on Wednesday.
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 3.6%.
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 1.7%.
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 5.5%.
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 advanced 6.9%.
The Final Word: Volatility could be poised for a comeback over the next four weeks as investors price in faster rate adjustments by the Federal Reserve. The Fed is widely expected to hike interest rates at its next policy meeting in June.