CBOE VIX Volatility Index nudges higher for sixth time in seven days.
The CBOE VIX (NYSEARCA:VXX) nudged higher on Tuesday, padding gains for the sixth time in seven days as stocks failed to sustain a tepid early-week rally.
The Chicago Board Options Exchange (CBOE) Volatility Index rose 0.8% to 11.59, its highest settlement in two months. The VIX reached a session high of 12.61, signaling the slow return of volatility to the market.
The large-cap S&P 500 Index (NYSEARCA:SPY) declined 0.2% on Tuesday.
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 0.8%.
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 0.8%.
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 1.2%.
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 1.5%.
The Final Word: Volatility is clearly on the rise, but it will take more substantial gains to generate the momentum needed to return to normal levels. Investors should remain on the lookout for sharp movements in U.S. stocks in the coming weeks.