CBOE VIX Volatility Index edged lower on Friday.
The CBOE VIX (VXX) traded within a narrow range on Friday, as stocks came under pressure over mixed data and coronavirus risks.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, traded between 13.38 and 14.54 on a scale of 1-100 where 20 represents the historic average. VIX would eventually settle at 13.68, having declined 3.3%.
In stocks, the large-cap S&P 500 Index (SPY) rose 0.2% on Friday.
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 1.2%.
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 0.7%.
ProShares Ultra Short Term VIX Futures: (UVXY) UVXY is designed to deliver 1.5X (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 1.9%.
VelocityShares Daily 2x VIX Short Term Futures ETN (TVIX) TVIX is a leveraged VIX ETN that tracks an index of futures contracts on the VIX Short-Term Futures Index. It provides 200% leverage on the volatility moves. TVIX declined 2.2%.
The Final Word: Volatility is back in a defensive posture, which is good for stocks. Ample liquidity from central banks is keeping equity values elevated despite coronavirus risks.