CBOE VIX Volatility Index declines even as stocks falter.
The CBOE VIX (NYSEARCA:VXX) declined on Friday even as stocks falter to.keep the momentum going, a sign that volatility was ebbing after a rocky week.
The Chicago Board Options Exchange (CBOE) Volatility Index closed down nearly 6% to 17.41, on a scale of 1-100 where 20 represents the historical average. The so-called “fear index” finished lower for the week despite multiple declines for Wall Street.
In equities, the S&P 500 Index (NYSEARCA:SPY) declined 0.3% on Friay.
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 3.6%.
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%.
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 5.5%.
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 7%.
The Final Word: Volatility declined unexpectedly on Friday, signaling renewed calm at the start of corporate earnings season. The earnings scorecards will drive much of the headlines next week.