CBOE VIX Volatility Index returns to positive territory with double-digit spike.
The CBOE VIX (NYSEARCA:VXX) surged on Tuesday, as trade and bond jitters rattled U.S. stocks.
The Chicago Board Options Exchange (CBOE) Volatility Index cracked the 20 mark on Tuesday, bringing prices back in line with the historic mean. The so-called “fear index’ settled at 20.92, having gained 27.3%.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) plunged 3.2%.
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 13.3%.
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 6.7%.
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 19.6%.
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 25.1%.
The Final Word: Wall Street’s boom-and-bust cycle continued on Tuesday, as equity prices gave back a large chunk of their early-week gains. This trend is likely to continue through the holiday season as traders continue to monitor trade talks.