CBOE VIX Volatility Index declines on Tuesday as stocks try for new gains.
The CBOE VIX (VXX) was back on the defensive Tuesday, as surging technology stocks pushed the S&P 500 higher.
The Chicago Board Options Exchange Volatility Index, commonly known as the VIX, reached an intraday low of 29.79 on a scale of 1-100 where 20 represents the historic average. The so-called “investor fear index” would eventually settle down 5.2% at 30.12.
In stocks, the large-cap S&P 500 Index (SPY) rose 1.5% on Tuesday.
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 4.9%.
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 2.5%.
ProShares Ultra Short Term VIX Futures: (UVXY) UVXY is designed to deliver 1.5X (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 7.7%.
VelocityShares Daily 2x VIX Short Term Futures ETN (TVIX) TVIX is a leveraged VIX ETN that tracks an index of futures contracts on the VIX Short-Term Futures Index. It provides 200% leverage on the volatility moves. TVIX declined 9%.
The Final Word: Investors continue to eye the global spread of COVID-19. As of Tuesday, more than 10.3 million people had been infected with the novel disease, including 2.6 million in the United States.