VIX Daily Update: Volatility Muted as S&P 500 Hits New High
VIX falls for sixth consecutive day.
VIX (NYSEARCA:VXX) was little changed Tuesday, as volatility remained muted amid another equities rally that pushed the S&P 500 and Dow Jones Industrial Average to new highs for the year.
The Chicago Board Options Exchange (CBOE) Volatility Index, Wall Street’s preferred measure of market uncertainty, closed down half a percent Tuesday, reaching its lowest level since April 1. The so-called “investor fear index” is trading well below its historical average of around 20.
The S&P 500 Index (NYSEARCA:SPY) advanced 0.3% Tuesday, its sixth gain in the past seven days.
Major VIX ETFs:
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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%.
VeloocityShares 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 declined 1%.
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 2.3%.
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 advanced 1.4%.
The Final Word: Volatility has declined for six consecutive days, pointing to continued upside in the US equities market despite a dismal earnings season.