CBOE VIX Volatility Index rises in holiday-shortened trading.
The CBOE VIX (NYSEARCA:VXX) advanced on Tuesday, as equity markets ran into turbulence ahead of the Independence Day holiday.
The Chicago Board Options Exchange (CBOE) Volatility Index reached a low of 14.68 during the morning session. It would later recover at 16.14, having gained 3.5% from the previous close.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) declined 0.5% on Tuesday.
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 advanced 0.7%.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY declined 0.2%.
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 advanced 1.3%.
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 advanced 1.6%.
The Final Word: Volatility has been prone to wild swings as of late as investors continue to evaluate the Trump administration’s trade policies. Reprieve may be on the way in the form of corporate earnings season.