CBOE VIX Volatility Index falls as S&P 500 notches new high.
The CBOE VIX (NYSEARCA:VXX) edged down slightly on Tuesday, and continued to trade around half the historic norm as Wall Street extended its post-Irma rally.
The Chicago Board Options Exchange (CBOE) declined 1.3% to close at 10.59. The fear index touched a session low of 10.29 and a high of 10.94.
The large-cap S&P 500 Index (NYSEARCA:SPY) gained 0.3% on Tuesday to close at a new all-time high.
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 2.7%.
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 2.6%.
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%.
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 4.9%.
The Final Word: Investor anxiety has given way to optimism in the wake of Hurricane Irma. The storm’s impact on Florida was much less than expected.