CBOE VIX Volatility Index records first gain in five days.
The CBOE VIX (NYSEARCA:VXX) rose on Wednesday, snapping a four-day downtrend as trade-war risks rattled U.S. stocks.
The Chicago Board Options Exchange (CBOE) Volatility Index touched a session high of 14.15 before giving back some of its intraday gains. The so-called “fear index” settled at 13.64 for a gain of nearly 8%.
Despite the gain, volatility remains very low by historical standards. Measures of relative strength and momentum suggest this downtrend is still intact.
In equities, the large-cap S&P 500 Index (NYSEARCA:SPY) fell 0.7% on Wednesday.
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 advanced 3.4%.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY declined 1.8%.
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 advanced 4.8%.
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 5.9%.
The Final Word: Volatility remains well below the historic average, but could find room to grow as trade-war risks loom large over Wall Street and the broader U.S. economy.