CBOE VIX Volatility Index edges higher on Fed day.
The CBOE VIX (NYSEARCA:VXX) closed in positive territory on Wednesday, as stocks fluctuated following the Federal Reserve’s decision to raise interest rates.
The Chicago Board Options Exchange (CBOE) Volatility Index advanced more than 4% to close at 12.94 after spending most of the day hovering in a narrow range. Wall Street’s volatility gauge continues to show complacency in the broader stock market.
In equities, the large-cap S&P 500 Index (NYSEARCA:SPY) closed down 0.4% 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 advanced 1.3%.
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 0.6%.
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%.
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 2.3%.
The Final Word: With the Fed setting its sights on higher interest rates, recent gains on Wall Street could come under attack. Market participants will be keeping a close eye on bond yields in piecing together their outlook.