CBOE VIX Volatility Index finishes lower after massive rally.
The CBOE VIX (NYSEARCA:VXX) declined on Thursday, as investors returned to stocks following the biggest rout in at least eight month.
The Chicago Board Options Exchange (CBOE) Volatility Index declined 6.6% to close at 14.66 on a scale of 1-100 where 20 represents the historical average. The VIX experienced massive gains on Wednesday as political turmoil in Washington undermined risk appetite in the financial markets.
The S&P 500 Index (NYSEARCA:SPY) advanced 0.4% on Thursday.
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 2.2%.
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 2.3%.
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 4.5%.
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 4.2%.
The Final Word: The stock market has shown repeated bouts of volatility in recent months, a sign the Trump rally may be on its last leg.