CBOE VIX Volatility Index declines sharply amid stock rally.
The CBOE VIX (NYSEARCA:VXX) declined sharply on Friday, as the S&P 500 Index (NYSEARCA:SPY) notched firm gains at the end of the second quarter.
The Chicago Board Options Exchange (CBOE) Volatility Index fell more than 5% to 16.00 on a scale where 20 represents the historic average. The so-called “fear index” touched three-and-a-half month highs on multiple occasions this week.
In equities, the S&P 500 Index climbed 0.1% on Friday.
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%.
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 1.2%.
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 3.9%.
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 5.6%.
The Final Word: The flash crash of early February gave way to more favorable trading conditions in the second quarter. However, the quarter was marked by several bouts of volatile trading patterns as trade war risks continued to influence investor sentiment.