CBOE VIX Volatility Index continues lower as tech shares lead Wall Street higher.
The CBOE VIX (NYSEARCA:VXX) headed for its fourth consecutive loss on Thursday, as tech shares lifted the major indexes to higher ground.
The Chicago Board Options Exchange (CBOE) Volatility Index declined 4.6% to 12.56 on a scale of 1-100 where 20 represents the historic average. The so-called “fear index” has seen its momentum decline sharply in recent days as risk-on sentiment returned to Wall Street.
In stocks, the S&P 500 Index (NYSEARCA:SPY) added 0.5% 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 2.9%.
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 1.5%.
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 4.4%.
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 5.5%.
The Final Word: Volatility rose double-digits in the first week of September but appears to be subsiding on trade and pro-growth optimism. It remains to be seen whether this trend can be sustained in the latter half of the month.