CBOE VIX Volatility Index treks higher even as stocks accelerate.
The CBOE VIX (NYSEARCA:VXX) continued to trek higher on Friday, defying another record-breaking rally in the equities market.
The Chicago Board options Exchange (CBOE) Volatility Index closed up 3.2% at 10.19, its highest level since Dec. 29. With the gain, the VIX is now trading above 50 on the Relative Strength Index. Historically, however, it remains very weak.
In equities, the S&P 500 Index (NYSEARCA:SPY) rose 0.7% on Friday to new 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 was unchanged.
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 declined 0.2%.
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 was unchanged.
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 0.2%.
The Bottom Line: Volatility appears to be quietly making its comeback, although it is still too early to tell if the gains are sustainable. Stocks continue to trek into record territory as investors look ahead to earnings.