CBOE VIX Volatility Index was back on the defensive Wednesday.
The CBOE VIX (VXX) swung lower on Wednesday, as stocks rebounded on Covid-19 vaccine optimism.
The CBOE Volatility Index (VXX), commonly known as the VIX, touched an intraday low of 27.98 on a scale of 1-100 where 20 represents the historic average. The so-called “investor fear index” would eventually settle down 8.1% at 28.07.
In stocks, the large-cap S&P 500 Index (SPY) rallied 1.7% on Wednesday.
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 6%.
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 3.1%.
ProShares Ultra Short Term VIX Futures: (UVXY) UVXY is designed to deliver 1.5X (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 9%.
VelocityShares Daily 2x VIX Short Term Futures ETN (TVIX) TVIX is a leveraged VIX ETN that tracks an index of futures contracts on the VIX Short-Term Futures Index. It provides 200% leverage on the volatility moves. TVIX declined 11.9%.
The Final Word: Investors continue to eye the global spread of COVID-19. As of Wednesday, more than 4.9 million people had been infected with the novel disease, including more than 1.5 million in the United States.