CBOE VIX Volatility Index pares losses as stocks extend rally.
The CBOE VIX (VXX) was back on the defensive Tuesday before paring losses in the final hour of trading, as stocks extended their recent string of gains.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, reached an intraday low of 14.38 on a scale of 1-100 where 20 represents the historic average. The so-called ‘fear index’ settled at 15.06, where it was little changed.
In stocks, the large-cap S&P 500 Index (SPY) advanced 0.3% on Tuesday.
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 0.2%.
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 0.1%.
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 1%.
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 0.4%.
The Final Word: Investors are once again downplaying the coronavirus, which has grown to infect more than 43,000 people across 27 countries. It remains to be seen whether the pandemic will cause investors to reassess their risk exposure.