VIX Index closes firmly higher as Hurricane Irma approaches Florida.
The CBOE VIX (NYSEARCA:VXX) rose sharply on Friday, as market participants braced for the impact of Hurricane Irma this weekend.
The Chicago Board Options Exchange (CBOE) Volatility Index rose 4.9% to settle at 12.12. The index traded within a daily range of 11.84 and 12.59. The VIX is in neutral range, based on the short-term oscillators. However, the 50-day simple moving average (SMA) remains well below the 200-day SMA.
The benchmark S&P 500 Index (NYSEARCA:SPY) closed down 0.2% on Friday.
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 2.4%.
VelocityShares Daily Inverse VIX Short Term Futures ETN: (NYSEARCA:XIV) Designed to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. XIV declined 2.6%.
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 4.6%.
VelocityShares Daily Short Term VIX 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 3.5%.
The Final Word: Hurricane Irma is expected to be one of the costliest storms in U.S. history. Around 650,000 people have already been told to evacuate the Miami-Dade region.