CBOE VIX Volatility Index traded higher on Tuesday as stocks struggled for direction.
The CBOE VIX (VXX) advanced on Tuesday, as investors looked ahead to a trade-deal signing ceremony between the United States and China.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, peaked at 13.82 on a scale of 1-100 where 20 represents the historic average. The so-called “investor fear index” would eventually settle at 12.49, having gained 1.4%.
In stocks, the large-cap S&P 500 Index (SPY) declined 0.2% on Tuesday.
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 0.7%.
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 0.5%.
ProShares Ultra Short Term VIX Futures: (UVXY) UVXY is designed to deliver 1.5X (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 0.8%.
VelocityShares Daily 2x VIX Short Term Futures ETN (TVIX) TVIX is a leveraged VIX ETN that tracks an index of futures contracts on the VIX Short-Term Futures Index. It provides 200% leverage on the volatility moves. TVIX declined 1.5%.
The Final Word: The U.S. and China will officially sign off on the “phase one” trade agreement on Wednesday. It remains to be seen whether both sides can bridge the gap on contentious issues like technology transfers and intellectual property.