The VIX market volatility index rises faster in final hour of trade.
The CBOE VIX (NYSEARCA:VXX) rose on Tuesday, even as stocks continued their record-setting rally on Wall Street.
The Chicago Board Options Exchange (CBOE) Volatility Index rose nearly 6% to close at 10.08. It was the index’s second consecutive up session. Vol traded within a narrow range for most of the day before accelerating in the final hour of the session.
In equities, the S&P 500 Index (NYSEARCA:SPY) climbed 0.1% en route to new record highs.
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 1.2%.
VelocityShares Daily Inverse VIX Short Term Futures ETN: (NYSEARCA:XIV) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. XIV declined 1.1%.
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 2.2%.
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 2.5%.
The Final Word: With the VIX holding below 10.00, there is very little sign of volatility in the market. This is expected to continue insofar as investors remain optimistic about the economy and President Trump’s legislative reforms.