CBE VIX Volatility Index trades steady ahead of U.S. midterms.
The CBOE VIX (NYSEARCA:VXX) traded tepidly on Tuesday ,as markets awaited the conclusion of the U.S. midterm elections.
The Chicago Board Options Exchange (CBOE) Volatility Index traded within a relatively narrow range on Wednesday. It would eventually settle at 20.44, having gained 2.4%. The so-called “fear index’ maintains a long-term mean of around 20.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) advanced 0.6% on Tuesday.
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 3%.
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 1.7%.
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 5%.
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 6.2%.
The Final Word: Markets performed well in the lead up to the midterm elections. However, the fallout from the vote could trigger a heavy reaction from Wall Street on Wednesday should Republicans lose their grip on Congress.