CBOE VIX Volatility Index jumps for second days on political turmoil.
The CBOE VIX (NYSEARCA:VXX) advanced on Tuesday, as political turmoil involving the Trump administration weighed on the major stock indexes.
The Chicago Board Options Exchange (CBOE) Volatility Index touched a session high of 16.98 before backtracking later in the afternoon. The so-called “fear index” rose 3.6% to close at 16.34.
In equities, the large-cap S&P 500 Index (NYSEARCA:SPY) fell 0.6% 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 1.8%.
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 0.7%.
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 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 3.6%.
The Final Word: Volatility has now risen for two consecutive days. More volatility could be on the way ahead of next week’s FOMC meeting, which is widely expected to result in a rate hike.