CBOE VIX Volatility Index continues higher as rate-hike jitters persist.
The CBOE VIX (NYSEARCA:VXX) traded firmly to the upside on Monday, reaching its highest level in over two months as rate hike jitters gripped Wall Street.
The Chicago Board Options Exchange (CBOE) Volatility Index reached a high of 18.38, putting it within reach of its historic average. It would later settle at 15.83 for a gain of 6.8%.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) pared losses on Monday to finish flat.
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 1%.
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 0.4%.
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 1.4%.
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 advanced 1.6%.
The Final Word: Volatility has made a startling return, a sign that investors continued to weigh the potential impact of rising interest rates. Those fears are unlikely to abate anytime soon as the Fed gets ready to raise interest rates again in December.