CBOE VIX Volatility Index nudges higher on Monday but calm prevails on Wall Street.
The CBOE VIX (NYSEARCA:VXX) traded within a narrow range on Monday as stocks continued their upward traction in the face of political risks.
The Chicago Board Options Exchange (CBOE) Volatility Index closed at 12.35, having gained 1.4% from the previous close. The so-called “fear index” hovered between 12.18 and 12.69.
In equities, the large-cap S&P 500 Index (NYSEARCA:SPY) added 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 1.6%.
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%.
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 2.3%.
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 2.8%.
The Final Word: Volatility remains very low by historic standards but that could all change on Wednesday when the Federal Reserve issues its policy statement. The Fed is eyeing at least two more upward rate adjustments this year, with some analysts predicting a third in December.