CBOE VIX Volatility Index spikes on Monday as trade tensions roil equities.
The CBOE VIX (NYSEARCA:VXX) made a roaring comeback Monday as U.S.-China trade tensions triggered a large selloff for global equities.
The Chicago Board Options Exchange (CBOE) Volatility Index reached a session high of 19.61, which is not far from the historic average. The so-called fear index settled at 17.51, having gained nearly 30% on the day.
In equities, the large-cap S&P 500 Index (NYSEARCA:SPY) plunged 1.4% 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 advanced 15.3%.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY declined 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 advanced 21.7%.
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 29.5%.
The Final Word: Volatility made its dramatic return on Monday. Tumult on the trade and geopolitical fronts could threaten seasonal calm that is normal associated with summer trading.