CBOE VIX Volatility Index finishes in negative territory even as stocks slump.
The CBOE VIX (NYSEARCA:VXX) drifted lower on Wednesday, with the underlying trend pointing to complacency in a market that continues to trek in record territory.
The Chicago Board Options Exchange (CBOE) Volatility Index fell 1.6% to close at 9.92. On Tuesday, the gauge closed in double-digit territory for the first time since late December.
In equities, the S&P 500 Index (NYSEARCA:SPY) closed down 0.2% on Wednesday, just one day after hitting fresh record highs.
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 1.1%.
VelocityShares Daily Inverse VIX Short Term Futures ETN: (NYSEARCA:XIV) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. XIV advanced 1.2%.
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%.
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 2.2%.
The Final Word: Volatility dropped for the first time in three sessions, but overall, the trend has remained largely unchanged. With stocks trading near record highs, the VIX is likely to continue trading near single-digit territory.