CBOE VIX Volatility Index heads lower as stocks recover.
The CBOE VIX (NYSEARCA:VXX) declined on Thursday, as stock prices mounted a strong comeback in the wake of the Fed’s policy decision.
The Chicago Board Options Exchange (CBOE) Volatility Index declined 3.1% to close at 1248. VIX is tracking well below the historic average but is nowhere close to the record lows it set all the way back in January.
In equities, the large-cap S&P 500 Index (NYSEARCA:SPY) rose 0.3% on Thursday.
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 1.9%.
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 0.9%
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 2.9%.
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 3.8%.
The Final Word: With stocks resuming their climb, volatility is showing little signs of mean reversion. Pressure on the volatility gauge is expected to intensify as we head into the holiday season.