CBOE VIX Volatility Index rises on Monday but finishes well off session highs.
The CBOE VIX (NYSEARCA:VXX) gained on Monday, snapping a three-day losing skid as a looming trade war weighed on investor sentiment.
The Chicago Board Options Exchange (CBOE) Volatility Index reached a session high of 16.35 before backtracking in the afternoon. The so-called “fear index” closed up 7.8% at 15.78. Despite the gain, the VIX exhibits weak momentum according to the RSI and MACD.
In equities, the large-cap S&P 500 Index (NYSEARCA:SPY) finished down 0.1% on Monday.
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 4.2%.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY declined 2.9%.
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 6.3%.
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 6.1%.
The Final Word: Volatility has declined significantly over the past week, but that could soon change. Investors are eyeing an important meeting of the Federal Reserve on Mar. 20-1, where policymakers are widely expected to raise interest rates for the first time since December.