CBOE VIX Volatility Index declines sharply following Trump-Xi meeting.
The CBOE VIX (NYSEARCA:VXX) declined sharply on Monday, as traders rallied behind the news that the U.S. and China were working towards resolving their bitter trade dispute.
The Chicago Board Options Exchange (CBOE) Volatility Index fell to a low of 15.94 on Monday. It would eventually settle at 16.41, having declined 9.2% during the session.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) advanced 1.1% 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 declined 5.5%.
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 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 declined 8.3%.
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 declined 10.9%.
The Final Word: We are a long way off from a comprehensive free trade agreement between the U.S. and China. Both sides will accelerate negotiations over the next 90 days. For now, the Trump administration has vowed not to increase import duties on roughly $200 billion worth of Chinese goods.