CBOE VIX Volatility Index holds steady as stocks set new all-time highs.
The CBOE VIX (VXX) barely moved on Thursday even as stocks surged to record highs on U.S.-China trade optimism.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, traded within a narrow range on Thursday. The so-called “fear index” eventually settled up 1.9% at 12.86 on a scale of 1-100 where 20 represents the historic average.
In stocks, the large-cap S&P 500 Index (SPY) gained 0.3% on Thursday.
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%.
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 0.5%.
ProShares Ultra Short Term VIX Futures: (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 1.3%.
VelocityShares Daily 2x VIX Short Term Futures ETN (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 2.2%.
The Final Word: The fear index has decoupled from the S&P 500, a sign that markets may be worried about valuation risks. While the VIX remains well below the historic average, it’s inverse relationship with stocks has vanished amid the latest rally.