CBOE VIX Volatility Index dips slightly ahead of Fed rate announcement.
The CBOE VIX (NYSEARCA:VXX) edged slightly lower on Tuesday, as stocks eked out narrow gains ahead of the Federal Reserve’s interest rate announcement on Wednesday.
The Chicago Board Options Exchange (CBOE) Volatility Index fell less than 1% to 12.31, on a scale of 1-100 where 20 represents the historical average. The so-called “fear index” hovered between 11.88 and 12.60 throughout the day.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) was up 0.2% by the close.
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 0.4%.
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 0.2%.
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 0.2%.
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 1%.
The Final Word: There is very little evidence of volatility on Wall Street. However, that may soon change as the Federal Reserve signals for higher interest rates.