CBOE VIX Volatility Index little changed as G20 Summit in Germany underway.
The CBOE VIX (NYSEARCA:VXX) was little changed on Friday in a session marked by tepid trading conditions, as investors turned their attention to the G20 meetings in Germany.
The Chicago Board Options Exchange (CBOE) Volatility Index, a measure of implied uncertainty over the next 30 days, was on track to close at two-week lows before reversing course in the afternoon session. The index closed up 0.6% at 11.28, snapping a two-day skid.
The large-cap Standard & Poor’s 500 Index (NYSEARCA:SPY) closed down 0.1% on Friday. The S&P 500 tracks inversely with the volatility gauge most of the time.
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 1.2%.
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 1.3%.
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 2.3%.
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 2.6%.
The Final Word: With volatility hovering near monthly lows, equities could be poised for higher highs in the short term. Upward trading catalysts are likely to be political, as investors hold on to hopes of faster economic growth under President Donald Trump.