CBOE VIX Volatility Index edges slightly lower as equities fail to extend rally.
The CBOE VIX (NYSEARCA:VXX) was little changed on Tuesday, as equity markets gave back some of their early-week gains amid disappointing quarterly earnings.
The Chicago Board Options Exchange (CBOE) Volatility Index closed down 1.6% at 14.42. The so-called “investor fear index” reversed course on Monday to finish sharply lower as equities mounted a large comeback.
Relative strength is back below 60 after reaching overbought levels last week.
The large-cap S&P 500 Index (NYSEARCA:SPY) declined 0.3% 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 declined 0.9%.
VelocityShares Daily Inverse VIX Short Term Futures ETN: (NYSEARCA:XIV) Designed to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. XIV 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 1.6%.
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 declined 2%.
The Final Word: Geopolitical risks continue to be top of mind amid earnings season. On Tuesday, British Prime Minister Theresa May announced a snap election to be held in June. The announcement came less than a week before French voters head to the polls in a closely watched presidential election.