CBOE VIX Volatility Index declines sharply on Friday as stocks accelerate.
The CBOE VIX (NYSEARCA:VXX) declined sharply in the final session of the week, as stocks rose in the wake of better than expected jobs data.
The Chicago Board Options Exchange (CBOE) Volatility Index was down more than 9% on Friday, reaching a low of 13.40. The so-called “fear index” has declined sharply since Independence Day, a sign that calm had returned to Wall Street.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) rose 0.9% Friday afternoon.
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 5.1%.
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 2.7%.
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 7.6%.
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 9.9%.
The Final Word: Volatility swung lower this week even as the United States and China engaged in trade war. It remains to be seen whether trade war risks can be kept at bay amid earnings season.