The CBOE VIX (VXX) verged lower on Wednesday as U.S. equity markets extended their relief rally.
The Chicago Board Options Exchange Volatility Index, commonly identified as the VIX, reached an intraday low of 21.68 on a scale of 1-100, where 20 represents the historical average. It would eventually settle down 7.7% at 21.34.
In stocks, the large-cap S&P 500 Index (SPY) rose 1.1% on Wednesday.
iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA: VXX) This ETN gives investors exposure to the Total Return from the S&P 500 VIX Index. The VIX Index utilises CBOE Volatility Index futures by way of long positions in both first and second-month VIX Futures contracts. VXX declined by 4%.
ProShares Short VIX Short-Term Futures (SVXY) to track the S&P 500 VIX Short Term Futures Index’s inverse daily performance. SVXY advanced 1.9%.
ProShares UltraShort Term VIX Futures: (UVXY) UVXY gives 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. UVX declined by 5.8%.