CBOE VIX Volatility Index falls to more than six-month lows.
The CBOE VIX (NYSEARCA:VXX) fell to more than six-month lows o Wednesday, as calm continued to prevail on Wall Street.
The Chicago Board Options Exchange (CBOE) Volatility Index declined 0.7% to 10.85, on a scale of 1-100 where 20 represents the historic average. The so-called “fear index” has declined in six of the past seven sessions and is currently trending in extremely bearish territory based on the technical charts.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) pared gains to finish flat on Wednesday.
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 declined 1.8%.
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 0.7%.
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 declined 2.4%.
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 declined 3.6%.
The Final Word: With volatility showing little signs of returning, investors can expect risk-on trade to continue in U.S. markets. However, optimism will likely be tempered by the threat of an all-out trade war between the U.S. and China.